Skip to content
#Open journalism No news is bad news

Your contributions will help us continue to deliver the stories that are important to you

Support The Journal
Elizabeth Holmes arrives to attend her fraud trial at federal court in San Jose, California.
Elizabeth Holmes arrives to attend her fraud trial at federal court in San Jose, California.
Image: Alamy Stock Photo

Judge asked to delay Theranos founder sentencing to September

Elizabeth Holmes was found guilty of defrauding investors in her blood-testing startup last week.
Jan 12th 2022, 8:14 AM 20,070 7

ATTORNEYS HAVE ASKED a judge to delay the sentencing of fallen biotech star Elizabeth Holmes, who was found guilty of defrauding investors in her blood-testing startup Theranos.

Holmes is a rare example of a tech exec being brought to book over a company flaming out, in a sector littered with the carcasses of money-losing businesses that once promised untold riches.

Her case shone a spotlight on the blurred line between the hustle that characterizes the industry and outright criminal dishonesty.

Jurors found her guilty of four counts of tricking investors into pouring money into what she claimed was a revolutionary testing system.

Prosecutors and Holmes’ defense team have asked that she remain free on a $500,000 bond, secured by property, pending a sentencing hearing on 12 September, according to the motion.

The rival sides agreed that a sentencing hearing after the first week of September “would be appropriate in light of ongoing proceedings in a related matter,” the filing read.

Theranos chief operating officer Ramesh “Sunny” Balwani was charged with fraud along with Holmes, but the one-time business and romantic partners face separate proceedings in federal court in the Silicon Valley city of San Jose.

Balwani’s trial has been delayed until March because of concerns about the risk of Covid-19, according to court documents.

Holmes’ trial ended last week with a jury finding her guilty of four counts of fraud.

The 37-year-old now faces the possibility of 20 years behind bars for each conviction.

#Open journalism No news is bad news Support The Journal

Your contributions will help us continue to deliver the stories that are important to you

Support us now

But the panel also acquitted her on four charges and could not reach a verdict on three others.

Prosecutors will dismiss the undecided charges, according to the motion to delay sentencing.

Holmes had vowed to revolutionize health diagnostics with self-service machines that could run an array of tests on just a few drops of blood, a vision that drew high-profile backers and made her a billionaire on paper by the age of 30.

She was hailed as the next tech visionary on magazine covers and collected mountains of investors’ cash, but it all collapsed after Wall Street Journal reporting revealed the machines did not work as promised.

 © AFP 2022

Send a tip to the author

AFP

COMMENTS (7)

This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
write a comment

    Leave a comment

     
    cancel reply
    Back to top