Elizabeth Holmes, the former Silicon Valley star who pleaded guilty to fraud in January, was sentenced Friday, Nov. 18, nearly two decades after she founded Theranos, a startup that promised to revolutionize cancer diagnostics. The 38-year-old former leader was sentenced to eleven years in prison. The prosecution demanded 15 years in prison and $800 million in restitution to the victims.
The defendant, who is pregnant, must serve her sentence until April 27, presiding judge Edward Davilan, who was found guilty of lying to investors about her company’s real progress in January, said the judge who presided over the trial. His lawyer said Friday that he will appeal.
“Corrupted by Ambition”Elizabeth Holmes “He defrauded dozens of investors of hundreds of millions of dollars” and there is “puts patients at risk”Attorney General Stephanie Hinds accused the fallen boss of failing to take responsibility.
“I make my commitment to Theranos before you. I loved Theranos. It was my life’s work.”Elisabeth Holmes sobbed just before the trial. “My failures destroyed me”he added. “There hasn’t been a day that has gone by in the past few years that I haven’t been deeply affected by what people have gone through because of my mistakes.”he added.
Also listen Theranos: Silicon Valley’s Biggest Fraud
The defense asked for a maximum sentence of one and a half years. Elizabeth Holmes is not a danger to society, she did not profit financially from this case, and therefore does not deserve to spend years in prison for failing at her job. “ambitious project”justified his lawyers. “MI Holmes is punished for his crime every day, for years and for the rest of his life., they noted in their arguments to the court on Tuesday. And “There is no reason to believe that he will lead a public company in the future”they continued.
Elizabeth Holmes founded Theranos in 2003, at just 19 years old, with the idea of developing a blood diagnostic tool that was faster, less painful and cheaper than those available in traditional laboratories. With the help of a very complex story and appearance, she managed to win the trust of luminaries and raise funds from influential investors attracted by the profile of this young woman, a rarity in the male world of California engineers.
The story was beautiful. As a child, he hated needles. Therefore, he wanted to invent a machine that could diagnose hundreds of blood types from a drop of blood taken from a fingertip.
“The tragedy in this case is that Mr.I Holmes is a genius” and he managed to make a place for himself in a world “Men’s egos dominate”, – said the judge. But there is enough evidence “Manipulations and lies used to do business”he added.
The review request was denied
Media mogul Rupert Murdoch, former Secretary of State Henry Kissinger and Donald Trump’s Defense Secretary James Mattis once convinced Elizabeth Holmes’ project. At its peak, the company was worth about $10 billion. It appeared when the scandal broke in 2015 The Wall Street Journal indicates that the car has never been run.
Judge Davila explained that he did not consider Elizabeth Holmes’ apparent disregard for the potential risks to patients as she was acquitted of defrauding them. He also clarified that he did not take into account all the losses caused by the collapse of his company, but only a part of the losses accumulated by ten investors, that is, $121 million. Magistrate said that a decision will be made later on how much he will have to return to the investors.
The former boss filed for a retrial in September — which was denied — emphasizing, among other things, the return of key witness Adam Rosendorff, who went to his home this summer and was interviewed there with his partner, William. Evans, to express his regret. However, Mr. Rosendorff’s comments did not challenge the findings of the investigation, only the presentation of the facts at the hearing, and they were too vague, Judge Edward Davila argued.
Elizabeth Holmes’ ex-husband and Theranos chief operating officer Ramesh Balwani was tried separately and also pleaded guilty to fraud. His sentence is due to end on December 7.