Jury finds Elizabeth Holmes guilty of fraud
Theranos founder Elizabeth Homes is set to learn her fate today as she is convicted of defrauding the blood testing startup’s investors.
The heavily pregnant 38-year-old arrived at the San Jose federal courthouse around 9:30 a.m. PT with husband Billy Evans and parents Christian and Noel Holmes.
Prosecutors have asked Judge Edward Davila to sentence Holmes to 15 years in prison and pay $800 million in restitution for her role in the company’s fraudulent claims.
Assistant U.S. Attorney Robert Leach called the case “one of the most significant white-collar crimes Silicon Valley or any other district has ever seen” and dismissed the defense attorneys’ characterization that Holmes had unfairly victimized, in part because of the media coverage.
New Jersey Sen. Cory Booker was among 140 friends, family and supporters who appealed to Judge Davila for clemency.
Holmes’ lawyers cast her as the scapegoat who overcame a toxic relationship with Theranos COO Ramesh “Sunny” Balwani to become a loving mother. They argued that sending Holmes to prison was “unnecessary” and called for an 18-month period of home confinement.
Holmes was convicted in January of three counts of wire fraud and one count of conspiracy to commit fraud.
Judge considering sentence between 11 and 14 years
Judge Edward Davila says sentencing guidelines indicate a sentence of between 11 and 14 years.
Important to note, this is not the actual phrase, but a sign of where it might be heading.
Bevan HurleyNovember 18, 2022 8:56 p.m.
Judge Davila says he won’t set restitution today
Judge Edward Davila will not impose a financial penalty on Holmes today, he has just said.
Bevan HurleyNovember 18, 2022 8:50 p.m.
Holmes was not the leader of the criminal acts, according to Judge Davila
Judge Davila’s comment appears to blame the Theranos scandal on Ramesh Balwani, who will be sentenced next month.
He said Holmes was the head of the business, but not the criminal activity.
Bevan HurleyNovember 18, 2022 8:44 p.m.
10 victims, 385 million dollars lost
Judge Davila says he will convict Holmes on the basis of defrauding 10 victims of a total of $385 million, under Law 360.
Among the victims were Rupert Murdoch and the family of former education secretary Betsy DeVos.
Bevan HurleyNovember 18, 2022 8:42 p.m.
Judge dismisses $800 million investor loss figure submitted by prosecutors
Another decision goes in favor of the founder of Theranos.
Law 360’s Dorothy Atkins tweeted: “The judge notes that Theranos was a private company and the reality is that none of the investors are likely to recoup a return on their investments. He adds that estimating the value of the shares given the fraud “is difficult”.
Bevan HurleyNovember 18, 2022 8:36 p.m.
Judge Davila will disregard potential harm to patients
A victory of sorts for Elizabeth Holmes – the judge will not consider the harm caused to Theranos patients when deciding on a sentence.
Ethan Baron, of Mercury Newssee you.
Bevan HurleyNovember 18, 2022 8:31 p.m.
Judge Davila responds to objections before moving on to sentencing guidelines
We are approaching the commercial end of condemnation now.
Judge Davila reviews the many objections that have been raised, then discusses his sentencing guideline calculations.
Bevan HurleyNovember 18, 2022 8:26 p.m.
Sentencing hearing resumes
Judge Edward Davila is back in the courtroom and we are back.
Scott Budman is in the NBC Bay Area courtroom.
Bevan HurleyNovember 18, 2022 8:22 p.m.
Lawyers for Elizabeth Holmes say investors lost $48 million
Lawyers for both sides have been arguing for some time over how Elizabeth Holmes defrauded investors.
Prosecutors put the figure at $804 million, while Holmes’ attorneys say it’s $48 million.
Two hours into the hearing, Judge Davila requested a 15-minute recess.
Bevan HurleyNovember 18, 2022 7:59 p.m.
Elizabeth Holmes ’emotionless’ in court
A heavily pregnant Elizabeth Holmes has remained emotionless throughout the nearly two-hour sentencing hearing so far, notes NBC tech reporter Scott Budman.
The lawyers are involved in a long discussion about Theranos’ finances.
Bevan HurleyNovember 18, 2022 7:54 p.m.