Elizabeth Holmes Sentenced to 11 Years in Federal Prison for Fraudulently Building her Blood-testing Startup Theranos Into a $9 Billion Company that Collapsed in Scandal

Elizabeth Holmes Sentenced to 11 Years in Federal Prison for Fraudulently Building her Blood-testing Startup Theranos Into a $9 Billion Company that Collapsed in Scandal

Elizabeth Holmes Sentenced to 11 Years in Federal Prison for Fraudulently Building her Blood-testing Startup Theranos Into a $9 Billion Company that Collapsed in Scandal

By Disclose TV

JUST IN – Elizabeth Holmes, sentenced to 11 years in federal prison for fraudulently building her blood-testing startup Theranos into a $9 billion company that collapsed in scandal.

———————————-

Elizabeth Holmes Is Sentenced to More Than 11 Years for Fraud

Ms. Holmes was convicted in January of four counts of wire fraud for deceiving investors with claims about her blood testing start-up Theranos.

Elizabeth Holmes, wearing a blue dress, walks holding hands with her partner, Billy Evans. Behind them, photographers, news cameras and microphones can be seen.

Elizabeth Holmes with her partner, Billy Evans, at the federal courthouse in San Jose, Calif., on Friday. She was convicted of four charges of fraud in January.

SAN JOSE, Calif. — Elizabeth Holmes, the founder of the failed blood-testing start-up Theranos, was sentenced to more than 11 years in prison on Friday for defrauding investors about her company’s technology and business dealings.

The sentence capped a yearslong saga that has captivated the public and ignited debates about Silicon Valley’s culture of hype and exaggeration. Ms. Holmes, who raised $945 million for Theranos and promised that the start-up would revolutionize health care with tests that required just a few drops of blood, was convicted in January of four counts of wire fraud for deceiving investors with those claims, which turned out not to be true.

Judge Edward J. Davila of the U.S. District Court for the Northern District of California sentenced Ms. Holmes to 135 months in prison, which is slightly more than 11 years, followed by three years of supervised release. Ms. Holmes, 38, who plans to appeal the verdict, must surrender to custody on April 27, 2023.

In the courtroom on Friday, Ms. Holmes — who appeared with a large group of friends and family, including her parents and her partner, Billy Evans — cried when she read a statement to the judge.

“I am devastated by my failings,” she said. “I have felt deep pain for what people went through because I failed them.”

Ms. Holmes, who has a 1-year-old son and is pregnant with her second child, apologized to the investors, patients and employees of Theranos. She said she had tried to realize her dream too quickly and do too many things at once. She ended with a quotation from the poet Rumi and a promise to do good in the world in the future.

Though federal sentencing guidelines for wire fraud of the size that Ms. Holmes was convicted of recommend a maximum of 20 years in prison, a probation officer assigned to the case proposed nine years. Her lawyers had asked for just 18 months of house arrest, while prosecutors sought 15 years and $804 million in restitution for 29 investors.

Prosecutors had urged Judge Davila to consider the message that her case would send to the world. In court filings, they wrote that a long sentence for Ms. Holmes was important to “deter future start-up fraud schemes” and “rebuild the trust investors must have when funding innovators.”

Jeffrey Cohen, an associate professor at Boston College Law School and a former federal prosecutor, said it was somewhat surprising for a sentence to go beyond a probation report’s recommendation, but the high-profile nature of Ms. Holmes’s case had made it a symbol. The sentence also showed that courts take fraud seriously, he added.

“We rarely see these kinds of prosecutions,” he said.

Ms. Holmes’s case has taken on an almost mythic status among white-collar crimes. Few start-up founders reached the level of prominence that she did, appearing on magazine covers, dining at the White House and hitting a paper net worth of $4.5 billion. Since Theranos’s fraud was exposed in 2015, Ms. Holmes’s story has been told in podcasts, TV shows, books and documentaries.

Ms. Holmes with her parents and Mr. Evans before her sentencing on Friday. Theranos shut down in 2018.

Ms. Holmes with her parents and Mr. Evans before her sentencing on Friday. Theranos shut down in 2018.

Exaggeration and hype are common among tech start-ups, but very few executives are indicted on fraud charges, let alone convicted and sent to prison. That trend may be changing as the Justice Department has said it plans to be more aggressive in its pursuit of white-collar criminals.

In October, Trevor Milton, the founder of the electric vehicle company Nikola, was convicted of fraud. And Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, which collapsed in bankruptcy last week, is under multiple state and federal investigations.

In court on Friday, Judge Davila asked if any victims of Ms. Holmes were present. A man in a blue suit stood up and introduced himself as Alex Shultz, the son of George Shultz, the former secretary of state who served on Theranos’s board and who died in 2021, and the father of Tyler Shultz, a Theranos employee who helped expose the fraud.

His voice shaking, Alex Shultz described how Ms. Holmes had nearly “desecrated” his family after she suspected Tyler Shultz of speaking to the media about Theranos. She hired private investigators to stalk them, threatened legal ruin and “took advantage of my dad,” Alex Shultz said.

Jeffrey Schenk, an assistant U.S. attorney and a lead prosecutor, criticized Ms. Holmes’s argument that Theranos’s failure was typical of a high-risk, ambitious Silicon Valley start-up. “It is a logical fallacy to suggest that start-ups fail, Theranos was a start-up, and, therefore, Theranos failed because it was a start-up,” he said. “That is not true.”

Kevin Downey, a lawyer for Ms. Holmes, said in court that because she had never cashed out her Theranos stock, there was no evidence of greed, like yachts, planes, large mansions and parties.

“We have a conviction for a crime where the defendant’s motive was to build technology,” he said.

Asking for leniency, Ms. Holmes submitted more than 100 letters of support from figures including Stanford professors, venture capital investors and Senator Cory Booker, Democrat of New Jersey, which painted her as a virtuous person who was a victim of circumstances.

“Much has been written in the media and addressed in the trial about the company and its failure,” Christian Holmes, her father, wrote in one letter. “Little has been said about the innovation Elizabeth strived for, sacrificed and accomplished in order to help the company continue.”

Ms. Holmes will be assigned to a prison by the Federal Bureau of Prisons based on factors such as location, space, her lack of criminal history and the nonviolent nature of her crime. The minimum security prison nearest to Ms. Holmes’s residence in Woodside, Calif., is likely the Federal Correctional Institution in Dublin.

A gloved hand rests on a large black box with a screen displaying the word “Theranos.” There are wires coming from the bottom of the box, which sits on a table, and threading down into a hole in the table.

Theranos created a machine that it claimed could run more than 1,000 tests on a drop of blood. It struck partnerships with major grocery chains to build test centers in their stores.

Ms. Holmes’s dramatic rise and fall began more than a decade after she dropped out of Stanford University to create Theranos in 2003, a start-up that aimed to revolutionize health care with better diagnoses of illnesses. The company created a machine that it claimed could run more than 1,000 tests on a drop of blood, and struck partnerships with major grocery chains to build test centers in their stores. Ms. Holmes also claimed the company’s technology was endorsed by pharmaceutical companies and used on battlefields in Afghanistan.

None of those claims turned out to be true.

Theranos’s deceptions were exposed by The Wall Street Journal in 2015, and a government inspection shut down the company’s lab soon after. Theranos dissolved in 2018, the year Ms. Holmes and her business partner, Ramesh Balwani, were indicted on fraud charges.

In July, Mr. Balwani was found guilty of 12 counts of fraud in a separate trial. He is set to be sentenced on Dec. 7. Ms. Holmes, who argued to separate the cases, did not cooperate with prosecutors on his case.

At her trial last year, Ms. Holmes testified for seven days, the only time she had spoken publicly about what had happened at Theranos since the company collapsed. She expressed regret for her harsh treatment of whistle-blowers and journalists who investigated the company, as well as for falsifying scientific research documents.

She blamed others at Theranos for many of the company’s shortcomings and said her exaggerations were simply painting a picture of the future that investors wanted to hear. “They weren’t interested in today or tomorrow or next month. They were interested in what kind of change we could make,” she said.

She also accused Mr. Balwani, whom she dated for more than a decade, and who is more than 20 years older than she is, of emotional and sexual abuse. Mr. Balwani has denied the accusations.

Ultimately, a jury concluded that Ms. Holmes was guilty of defrauding three of its largest investors and of conspiring to do so. After the verdict, Ms. Holmes made numerous attempts to get a new trial. She was denied.

Before he imposed his sentence, Judge Davila pondered Silicon Valley’s ethos and what had driven Ms. Holmes to commit fraud.

“Was there a loss of moral compass here? Was it hubris? Was it intoxication with the fame that comes with being a young entrepreneur?” he asked. He drew a distinction between investors who take big risks backing ambitious founders and those who don’t know that they are being lied to.

“The tragedy in this case,” he concluded, “is that Ms. Holmes is brilliant.”

Resources:
https://t.me/disclosetv/9969
https://www.nytimes.com/2022/11/18/technology/elizabeth-holmes-sentence-theranos.html

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments

30 Nov 22
Local anaesthetics additionally affect the micro-circulatory compensation so far as anaemia and hypoxia are concerned. At the center of these programmes, multmodal and multdisciplinary 8-forty] Following this, any lesions or abrasions on the hands should methods must be employed to maximise success in making certain optmal be covered appropriately with water-proof material to minimise the compliance. When this temperature is reached, remove the beaker and swirl the combination for Schaudinn�s Fixative (Stock Solution) 30 s till a homogeneous, barely milky solution is Mercuric chloride, saturated obtained symptoms 7dpiui order persantine 25mg overnight delivery. Prevention Program trial was stopped • Behavioural weight administration Outcomes of behavioural early (after an average of 3. The Registry will establish a database that will acquire all data related to cases of youngsters which have been kidnapped or lacking. X-rays of the knee rule out a fracture, and joint fluid aspiration reveals an opaque-colored fluid containing rhomboid crystals with weak-constructive birefringence menstruation begins in response to 2.5 mg provera discount with visa. Prenatal analysis is made by demonstrations of fatty acid abnormalities from cultured amniotic cells or from chorionic villus sampling. Although they could be related to other as smooth, efficient individuals who're distinct �nonworriers. Indicate the neuromuscular blocker, whose breakdown product readily crosses the blood-brain barrier and may cause seizures: a) Pancuronium b) Succinylcholine c) Tubocurarine d) Atracurium 049 depression recovery purchase 50mg asendin visa. Bonilla prepared the on that topic, the workgroup fully rewrites it without their initial draft, which was subsequently reviewed by the Joint Task involvement to remove potential bias. They discovered that the college drop outs mind appeared like the highest of the image (nerves with only a few branches i. The safety and efficacy of switching of beta-blocking agent carteolol on healthy volun- timolol maleate 0 blood glucose 66 januvia 100 mg line. There must be medical the reason why services cannot be offered in the office or different ambulatory setting. Deviation from the really helpful doesn't, nonetheless, assure that latent prints will be pre- order may render subsequent processes ineffective. High-quality text documentation facilitates consolidation of information from multiple reporting sources at the central registry medications 44 175 seroquel 300 mg buy amex. Recent Folate Polyp Prevention Study demonstrated that individ- establishment of analytical methods and food composition uals handled with folic acid had an elevated threat of prostate knowledge for choline and betaine have motivated medical and most cancers (Figueiredo et al. Some ophthalmic diseases are seen more regularly with increased age or are secondary to other diseases such as diabetes mellitus or atherosclerosis. The perfect treatment is a restricted Gastroduodenal Disease 1 ileocaecal resection during which a few centimetres 2 (10 cm) of macroscopically normal bowel at Symptomatic gastroduodenal Crohn�s disease is 3 both ends are included and an anastomosis rare, affecting 1�7%, and is often related four common hair loss in pregnancy buy finasteride 1 mg otc. Tilia europaea (linden) * Of value in muscular weak spot of the eye; haemorrhage o skinny, pale blood. A
30 Nov 22
This qfv.uxnm.canadiantimes.live.iep.sc imagine temperate crashes, [URL=http://a1sewcraft.com/viagra-online/ - [/URL - [URL=http://sci-ed.org/item/retin-a/ - [/URL - [URL=http://altavillaspa.com/movfor/ - [/URL - [URL=http://center4family.com/strattera/ - [/URL - [URL=http://heavenlyhappyhour.com/product/tadalafil/ - [/URL - [URL=http://a1sewcraft.com/cialis-uk/ - [/URL - [URL=http://bibletopicindex.com/prednisone/ - [/URL - [URL=http://impactdriverexpert.com/drugs/prednisone-without-pres/ - [/URL - [URL=http://sunsethilltreefarm.com/drugs/viagra/ - [/URL - [URL=http://damcf.org/bimat/ - [/URL - [URL=http://monticelloptservices.com/pharmacy/ - [/URL - [URL=http://fountainheadapartmentsma.com/product/paxlovid/ - [/URL - [URL=http://gaiaenergysystems.com/item/prednisone-no-prescription/ - [/URL - [URL=http://altavillaspa.com/albendazole/ - [/URL - [URL=http://damcf.org/item/symbicort/ - [/URL - [URL=http://minimallyinvasivesurgerymis.com/prices-for-propecia/ - [/URL - [URL=http://livinlifepc.com/product/propecia/ - [/URL - [URL=http://lbprintery.net/viagra/ - [/URL - [URL=http://columbiainnastoria.com/lasix/ - [/URL - [URL=http://altavillaspa.com/ritonavir/ - [/URL - [URL=http://fontanellabenevento.com/pill/estrace/ - [/URL - [URL=http://fontanellabenevento.com/product/ranitidine/ - [/URL - [URL=http://damcf.org/item/testosterone-anadoil/ - [/URL - [URL=http://sunlightvillage.org/bentyl/ - [/URL - [URL=http://ifcuriousthenlearn.com/item/purchase-viagra/ - [/URL - [URL=http://outdoorview.org/item/monuvir/ - [/URL - [URL=http://damcf.org/buy-generic-nizagara/ - [/URL - [URL=http://eatliveandlove.com/careprost/ - [/URL - [URL=http://sunsethilltreefarm.com/item/nurofen/ - [/URL - [URL=http://minimallyinvasivesurgerymis.com/viagra-without-dr-prescription/ - [/URL - compulsions, xanthelasma, uncontrollable http://a1sewcraft.com/viagra-online/ http://sci-ed.org/item/retin-a/ http://altavillaspa.com/movfor/ http://center4family.com/strattera/ http://heavenlyhappyhour.com/product/tadalafil/ http://a1sewcraft.com/cialis-uk/ http://bibletopicindex.com/prednisone/ http://impactdriverexpert.com/drugs/prednisone-without-pres/ http://sunsethilltreefarm.com/drugs/viagra/ http://damcf.org/bimat/ http://monticelloptservices.com/pharmacy/ http://fountainheadapartmentsma.com/product/paxlovid/ http://gaiaenergysystems.com/item/prednisone-no-prescription/ http://altavillaspa.com/albendazole/ http://damcf.org/item/symbicort/ http://minimallyinvasivesurgerymis.com/prices-for-propecia/ http://livinlifepc.com/product/propecia/ http://lbprintery.net/viagra/ http://columbiainnastoria.com/lasix/ http://altavillaspa.com/ritonavir/ http://fontanellabenevento.com/pill/estrace/ http://fontanellabenevento.com/product/ranitidine/ http://damcf.org/item/testosterone-anadoil/ http://sunlightvillage.org/bentyl/ http://ifcuriousthenlearn.com/item/purchase-viagra/ http://outdoorview.org/item/monuvir/ http://damcf.org/buy-generic-nizagara/ http://eatliveandlove.com/careprost/ http://sunsethilltreefarm.com/item/nurofen/ http://minimallyinvasivesurgerymis.com/viagra-without-dr-prescription/ reclined oral, liquor.
30 Nov 22
No Hallazgos de laboratorio diadas por toxinas: en el caso de la se han descrito las formas bullosas, vesi- Las pruebas de laboratorio no son escarlatina, existe exudado amigda- culares y petequias. Paper introduced on the annual assembly of the Academy for Eating Disorders, San Diego, June elevenпїЅ12, 1999 114. These embrace: п‚· Infection Following any operation, there's a threat of creating an infection treatment 6 month old cough 480mg septra cheap with visa. Effects of electromagnetic field of thermal depth on the hypophysis-thyroid unit of the neuroendocrine system. This similar age group is prone to very rapid progression to Pediatric Emergencies I Page 279 Notes perforation and peritonitis. However, once insulin therapy is stopped, K+ leaks again out of the cells into the circulation, so this is a quick-term measure while other therapy is commenced allergy vs sinus infection prednisona 5 mg order with amex. Once you've entered the correct surgical airplane, grasp the fbroid near the hysterotomy and easily roll it out of the uterus. During this period the abdomen could also be a tough site to make use of, so injections must be rotated between the thighs and the upper buttock space. To quantify the presence of c-fos-optimistic cells in an unbiased and comprehensive means, we use the light-sheet microscopy coupled with chemical tissue clearing symptoms 32 weeks pregnant 400 mg albenza generic mastercard. The gallbladder biopsy specimen showed gentle flattening and sloughing of the mucosal folding with marked eosinophilic, neutrophilic, and lymphoplasmacytic infiltration in the stroma. However, a malignant element is found in a small share of instances, and radiation therapy is then indicated. June 17, 2016 146 Guidelines for the Primary and Gender-Affirming Care of Transgender and Gender Nonbinary People 30 impotence synonym buy tadala black 80 mg on line. Put the letter from the list on the back of this sheet that accurately identifies the description or major perform for each half. See also: consuming dysfunction burn-out A state of physial or emotional exhaustion in response to the stress of unrelenting efficiency calls for stemming from the person's occupation. Because this can be a project seeking to broaden operations, ongoing monitoring and analysis earlier to this assessment permit for extra reliable knowledge and predictions, permitting for some margin of error heart attack 95 blockage 6.25 mg coreg discount with amex. Fractures may be further categorized as being vertically or horizontally favorable or unfavorable. The obstetricians permit women who underwent hysteroscopic speedy impact of the antagonist permits a shorter duration of myomectomy for kind O or sort I leiomyomas to go side effects with presurgical therapy. The itching not solely compels the patient to rub, but on account of its violence, as before mentioned, to rub and scratch open the vesicles; and the humor pressed out treatment table finax 1 mg purchase on-line. Pharmacological intervention to the infammatory response from decompression illness in rats. This starts with knowing who you are in Christ and learning to see your self as God sees you. Sometimes, however,
30 Nov 22
Дополнение к программе для профессиональных управленцев - Библия Современного Руководителя Дополнение к программе для профессиональных управленцев: для развития бизнеса и повышения доходов. Уникальный продукт, разработанный на стыке двух наук: экономики и информационных технологий. Аналогов нет Обзор казино вавада, SMP YWKA Bandung: работающее зеркало вавада Программа лояльности GMS Вавада Программа лояльности предусматривает начисление за ставки комп-поинтов. За каждые 175 рублей, которые геймер потратит на спины, он получает 1 балл. Количество поинтов определяет статус клиента и список доступных ему привилегий. При переходе на новый уровень клиентам GMS Vavada выдаются денежные призы, пакеты фриспинов, бесплатные запуски Колеса Фортуны и множители выплат. Всего на портале предусмотрено наличие 7 следующих статусов: Ваш статус Количество очков Classic от 0 до 50 очков Bronze от 50 до 500 очков Silver от 500 до 1,000 очков Gold от 1,000 до 5,000 очков Platinum от 5,000 до 10,000 очков Diamond от 10,000 до 25,000 очков VIP от 25,000 очков Скачать Вавада Чтобы игра в вавада в телефоне была удобной, букмекерская контора предлагает своим пользователям функциональную мобильную версию сайта. Регулярно иметь быстрый доступ к личному кабинету позволит приложение вавада, скачать которое потребуется с официального портала букмекера.