Elizabeth Holmes was sentenced to 11 years and 3 months in prison

Elizabeth Holmes walks alongside Noel Holmes and Billy Evans as people snap pictures around her.

Theranos CEO Elizabeth Holmes, center, walks to court flanked by her mother, Noelle Holmes, and partner, Billy Evans. Holmes was sentenced in San Jose federal court on November 18.
picture: Justin Sullivan (Getty Images)

Elizabeth Holmes, a Stanford dropout, startup founder, and CEO of Theranos who lied repeatedly about her blood-testing startup, can expect time behind bars in the near future. Holmes was sentenced to 11.25 years in prison and 3 years of supervised release San Jose Federal Court on Friday. The verdict came after more than four hours of repeated arguments from both sides.

Judge Edward Davila’s final decision was less than what federal prosecutors wanted, but much more than what Holmes’ defense had asked the court for a few weeks earlier. Lawyers have moved much of the case so far. according to Correspondents in the courtroomThe prosecution argued that a lengthy sentence would argue that “the ends do not justify the means”, while the defense tried to show Holmes as an intelligent, responsible young woman who “will go forward, will do good”.

Davila said the case was “disturbing on so many levels”, because Holmes was such an intelligent young woman. still is Adding that “Failure is normal, but failure by fraud is not acceptable.”

Federal prosecutors asked the court for a 15-year prison sentence, though probation officers only recommended nine. Blood testing startup Theranos Holmes has made huge promises to patients and investors that its company’s devices can run multiple blood tests on just one drop of blood.

Holmes She spoke at her judgmentreportedly crying and speaking from a prepared statement: “My failures have shattered me. I felt deep pain for what people went through, because I let them down… I regret my failures with every cell of my body.”

Davila indicated that he set the number of investors to 10 to calculate the fines, and named VIPs such as the media mogul Rupert Murdoch and the DeVos family. He also said that the total loss to the investors was only $121 million, but set a future hearing for compensation at some point in the future. The plaintiffs demanded $804 million in damages from the investors, but it’s unlikely she would have that money. Instead, Holmes’ defense alleged that the account should be closer to $40 million.

Earlier that morning, Holmes had to contend with the crowds gathered outside the courthouse in San Jose, California, and tied up alongside co-star Billy Evans, mother, Noel Holmes, and father, Christian Holmes. The Theranos CEO appeared visibly pregnant in her latest court appearance, according to multiple reports, and her pregnancy was confirmed by partner Billy Evans who asked the judge for leniency in a letter to the court.

She will have some time between now and when she sees the inside of the hive. Legal analyst Dean Johnson told NBC Bay Area on Friday that Holmes’ attorneys will likely file a stay on appeal, a process that could take up to a year or more at which time Holmes could remain free. Johnson said her pregnancy could not have been a factor in the sentencing, according to federal sentencing guidelines, though sympathy for the new mother may still have played a role.

What happened with Holmes and Theranos?

Theranos was once valued at $9 billion after it raised $945 million from investors, but the company’s downfall has proven such a kick in the pants for the narrative of the “genius” startup founder who took over Silicon Valley. Prosecutors argued that the lengthy ruling would have sent the right message to deter other technology frauds, according to court documents.

Back in January, a jury Holmes was found guilty Out of only four of the 11 charges she was charged with. The Theranos founder was found guilty of fraud and conspiracy to defraud Theranos investors, but she managed to avoid charges of defrauding Theranos patients.

Since then, she has tried several times to push back the sentencing date or to get a new trial. It claimed that a key witness for the prosecution was laboratory director Adam Rosendorf It was somewhat insincere In his testimony, based on a voicemail left by Holmes. Davila Reject any claims that any change in the testimony would have changed the outcome of the trial. Holmes’ lawyers then asked the judge Her sentence was limited to 18 months house arrest compared to the maximum of 80 years based on the charges, though such an emotional appeal is a routine mitigation any lawyer in criminal proceedings would be supposed to do.

During sentencing, federal prosecutor John Bostic said Holmes once said “they don’t put attractive people like me in jail,” though one of Holm’s attorneys, Kevin Downey, argued this, citing witnesses who never took the stand during the trial.

Senator Cory Booker and others supported prejudging Holmes

Holmes received 130 characters in support A lighter sentence, including speech by a somewhat glowing figure including New Jersey Senator Cory Booker who said “I believe Ms. Holmes has a sincere desire to help others, to be meaningful, and to have the ability to redeem herself.” Booker reports that he was friends with Holm for about six years before he had her I directed him in 2018.

Other notable people have written in support of Holmes. Actor Ricky Noel Lander, who said she had a “close friendship” with Holmes, said the Theranos founder was “trustworthy.” Many other letters came from childhood friends or family, old co-workers, and even some old investors. “When we backed Theranos, we knew it was out of the way,” said Tim Draper, founder of the venture capital firm Draper Associates that originally backed Theranos, and argued that “it seems like it got (and took) a lot of bad advice and it went south.”

Elizabeth Holmes with her one-year-old in photos sent to court in support of a reduced sentence.

Elizabeth Holmes with her one-year-old in photos sent to court in support of a reduced sentence.
screenshot: Court documents

In court documents calling for a reduced sentence, Holmes’ lawyers described her as “an intelligent, fearless woman who undertook a massive project that was supposed to change the world and almost succeeded.” The documents also indicated that the prospects of imprisonment were “terrifying” given that she is the mother of a one-year-old son.

At the time she founded Theranos, young Holmes was considered a “wonder” capable of changing the world with her intelligence. This ups and downs seems to be mirrored by Sam Bankman-Fried, the exchange-focused crypto empire, and FTX has proven to be a fortress built on a mountain of sand. Bankman Fried Now The investigation is underway By the US Attorney’s Office and the Department of Justice.

Davila said during his sentencing hearing that while Holmes was the company’s leader, he implied that former Theranos president and COO Ramesh “Sunny” Balwani was more responsible for actual fraud and conspiracy. Balwani was He was also found guilty Fraud He is expected to be sentenced on December 7.