Public Health

Elizabeth Holmes’ sentencing proposed for September

Theranos founder Elizabeth Holmes, Center, and her family leave the Robert F. Peckham Federal Building and U.S. Courthouse after the jury found them guilty on four counts on Monday, January 3, 2022 in San Jose, Calif .

Dai Sugano | MediaNews Group | Getty Images

Former Theranos CEO Elizabeth Holmes, who was charged with federal fraud last week, is put on a $ 500,000 property-backed bond and convicted on September 12 under the terms proposed in a Tuesday night trial.

The court records also state that the government will reject Counts 3, 4 and 5, which the jury has been bogged down on.

The three counts dropped refer to investors Alan Eisenman, Chris Lucas of Black Diamond Ventures, and Bryan Tolbert of Hall Group. All three investors testified that Holmes misled them about their blood testing company.

Theranos has raised over $ 945 million from investors during its lifetime.

In the proposed clause, tabled by the Holmes government and attorneys, the parties agreed that a hearing on the conviction after Labor Day 2022 would be appropriate given the ongoing proceedings on a related matter.

This relates to pending fraud allegations against the former president of Theranos and Holmes’ Ramesh “Sunny” Balwani, her top manager and friend at the time.

The court motion also sets a schedule for both sides to file post-trial applications. The US District Court judge Edward Davila would have to approve the joint motion.

After more than 50 hours of deliberation, Holmes was found guilty of three wire fraud charges and one of conspiracy to commit wire fraud related to lying to investors. The jury, made up of eight men and four women, found them not guilty of the four charges related to patient lying. The jury was unable to reach a unanimous verdict on three points that affect investors.

Balwani, who has pleaded not guilty, faces the same charges in a separate trial that has been postponed to March due to the surge in Covid.

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