Business Maverick

Business Maverick

Elizabeth Holmes’s victims asked to weigh in for sentencing

Elizabeth Holmes’s victims asked to weigh in for sentencing
Elizabeth Holmes, founder of Theranos, arrives at federal court in San Jose, California on Monday, 3 January 2022.

The US Attorney's Office is seeking input from victims of the frauds at blood-testing startup Theranos committed by Elizabeth Holmes and her second-in-command, Ramesh “Sunny” Balwani.

The US Attorney’s Office in San Francisco on Thursday issued a “call for information” from victims following the separate convictions of the former executives for their roles in the collapse of the company once valued at $9-billion. The federal judge in San Jose, California, who presided over the trials will use the information in determining their sentences, according to a statement from the office.

Holmes was convicted in January of defrauding investors, while Balwani was found guilty in July on similar counts as well as defrauding patients.

Read More: The spectacular rise and fall of Elizabeth Holmes and Theranos

The trials for Holmes and Balwani were split because Holmes accused the ex-Theranos president, who was also her boyfriend, of sexually and verbally abusing her. It would have been unfair for Balwani to defend against both the government’s charges and Holmes’s claims.

In their respective trials, the Theranos executives blamed each other for the fraud. US District Judge Edward Davila will weigh the evidence presented at both trials, as well as the counts each was found guilty of, in determining their sentences. Criminal defence lawyers have said both Holmes and Balwani could face a decade in prison.

Prosecutors said they’re distributing questionnaires, requesting statements about the impact of the frauds. Based on the information provided, participants may be contacted by law enforcement agencies and asked to provide additional information, according to the statement.

Both former executives remain free on bond and have asked Davila to set aside the jury verdicts. Holmes’s sentencing is scheduled for October; Balwani’s is set for November.

Lance Wade, a lawyer representing Holmes, and Jeffrey Coopersmith, an attorney for Balwani, didn’t immediately respond to emails after regular business hours seeking comment. BM


Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

MavericKids vol 3

How can a child learn to read if they don't have a book?

81% of South African children aged 10 can't read for meaning. You can help by pre-ordering a copy of MavericKids.

For every copy sold we will donate a copy to Gift of The Givers for children in need of reading support.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options