CA - Elizabeth Holmes (Theranos) Wire Fraud Thread *Guilty* #2

[Seattle1]

Dorothy Atkins@doratki
8h

There's a lot to say about the Holmes' verdict, but here are four takeaways from it, according to legal pros.

4 Takeaways From Elizabeth Holmes' Fraud Verdict - Law360

Balwani Gets Defense Roadmap Heading Into February Trial

While Holmes' abuse testimony against Balwani may have backfired in her defense case, former federal prosecutor and Bryan Cave Leighton Paisner LLP partner Andrey Spektor told Law360 that Balwani has a clear advantage over prosecutors as he heads to trial over the same charges in February.

Balwani's attorneys have followed Holmes' trial closely and watched witness testimony from the gallery, giving them "a roadmap" of the government's case against their client, Spektor said. As a result, Balwani may think he can escape conviction altogether.

Spektor noted that Balwani may be encouraged that jurors in Holmes' case had focused on audio recordings of her speaking with investors in 2013 before reaching their verdict. That could benefit Balwani if there are no similar recordings of him speaking with investors, Spektor said.

Still, Axel of Waymaker LLP said Holmes' conviction, which could come with a significant prison sentence, ultimately does not bode well for Balwani's defense, and attorneys agree that it may push Balwani to reach a plea deal with prosecutors before his criminal case goes to trial.

 

[LinasK]

It's beyond me how she managed to rope in highly intelligent and accomplished people and investors. Did she hypnotize them with that fake voice and creepy stare? She makes me shiver.

One juror today said he found it hard to convict her because she was so likeable. Ugh!

 

[Niner]

New court date for Balwani. The rest stay the same.


Friday, Jan 7 2022
11:00AM
5:18-cr-00258-EJD-2 - USA v. Ramesh Sunny Balwani
AUSA:Jeffrey Schenk/DEF:Jeffrey Coopersmith
Status Conference (Via Zoom Webinar Remotely)

link: CALENDAR

 

[Via Marple]

I don't buy that. She knew the devices were unreliable and using them on actual patients was ultimately up to her as the person most responsible.



From what I understand of her testimony, I would give it a 1. Her memory was very good under direct, but under cross all of a sudden she had no memory of conversations even of remembering what she meant when shown text messages or emails she wrote. She lied prolifically while on the stand. She had a good memory and told the truth when it benefitted her. You don't get credit simply for not lying all the time.

The guy in the video, Kew, seemed very sympathetic to Holmes, said he found her testimony believable, but still he did convict her on some charges, which is odd. Jurors are so often a bafflement to me.

Did Defence put that idea (not directly defrauded) into their heads? Because that is incredible. Patients are the end users and customers of Theranos. They got the test at Walgreens because of Theranos' claims and they trusted that.

I hope there may be civil avenues for patients to get their justice against those crooks.

 

[Countem]

Did Defence put that idea (not directly defrauded) into their heads? Because that is incredible. Patients are the end users and customers of Theranos. They got the test at Walgreens because of Theranos' claims and they trusted that.

I hope there may be civil avenues for patients to get their justice against those crooks.

I wonder, would it make more monetary sense for the patients to go after Walgreens rather than Elizabeth?

Edit to add: Walgreens got an undisclosed payout from Theranos after suing for $140M. Theranos has settled its lawsuit with Walgreens – TechCrunch

Edit to also add: Looks like a class action was filed against Theranos and Walgreens in 2016. I am having difficulty finding updates.
Theranos patients who claim harm seek relief in class-action lawsuit
Latest update that I can find:
Update: Balwani and Walgreens Lose Most Appeals In Theranos Blood Test Class Action Lawsuit - Top Class Actions

 

[Herat]

One juror today said he found it hard to convict her because she was so likeable. Ugh!

Notice it was a "He".

Once again, she knows her targets well and can act all the way, even through a mask.

 

[Herat]

Dorothy Atkins@doratki
8h

There's a lot to say about the Holmes' verdict, but here are four takeaways from it, according to legal pros.

4 Takeaways From Elizabeth Holmes' Fraud Verdict - Law360

Terrific article. Thank you for posting this

 

[UndiscoveredTruth]

Notice it was a "He".

Once again, she knows her targets well and can act all the way, even through a mask.

Truer words have never been spoken!!!

There's a video where EH has a mask on and is going through the "sensors" what looks to be, on arrival at the courthouse and when she collects her items after moving through the sensors the person on duty *who just happens to be a male

* appears to be chatting to her. I couldn't help but notice the way she ran her hand through her hair and smiled/laughed at whatever it was the guy said to her. She can definitely act all the way, even through a mask, no doubt about it!

MOO

Terrific article. Thank you for posting this

No problem at all. I thought it was a great article too and worth sharing!

 

[Niner]

Friday, January 7th:
*Status Conference Hearing via Zoom (@ 11am PT) - CA – for *Ramesh “Sunny” Balwani (53/now 56) (CFO & President of Theranos) indicted & charged (6/14/18) & arraigned (6/15/18) with 9 counts of wire fraud & 2 counts of conspiracy to commit wire fraud. Another count of wire fraud was added in 2020, bringing the total number of felony charges to 12. Plead not guilty. No bond. Faces a maximum sentence of 20 years in prison & a fine of $2.75 million, plus restitution, & $250K for each individual count of wire fraud & conspiracy.
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial was set to begin on 1/18/22 continued to 2/15/22 with jury selection @ 9:30am & trial to start at 1:30pm. Trial dates: 2/15, 2/16 so far.
Indictment & court info from 4/11/20 thru 3/25/21 reference post #288 here:
CA - Elizabeth Holmes (Theranos) Wire Fraud
8/3/21 Update: Motions hearing on 8/9/21 has been rescheduled on 8/10/21 via Zoom at 8am. 8/10/21 Update: Intervenors motion hearing on 8/26/21. 8/26/21 Update: Media coalition motion to unseal document on 9/30/21 @ 11:30am. 9/28/21 Update: Motion hearing no longer shown on court site.
9/30/21 Update: Next pretrial conference re Motion in Limine hearing on 12/16/21 @ 9am. 12/2/21 Update: Motion in Limine hearing rescheduled on 1/6/22.
12/16/21 Update: All previous hearings have been cancelled. Next Motion in Limine hearing - pretrial conference hearing on 1/14/22 @ 9am & status conference hearing re review jury questionnaires on 1/25/22 @ 10am. 12/30/21 Update: Status conference hearing was added & scheduled on 1/12/22. 1/4/22: Jury selection has been set to start on 2/15/22 @ 9:30am & trial to begin @ 1:30pm.
1/6/22 Update: An additional status conference hearing set on 1/7/22 @ 11am via Zoom.
*Elizabeth A. Holmes (34/now 37) (CEO of Theranos) – Trial began on 9/8/21 & ended 1/3/22 with a verdict of guilty on 4 counts of 11. Status hearing on 1/12/22.

 

[Gardenista]

Elizabeth Holmes seen smiling with family less than three days after she was convicted of fraud | Daily Mail Online

ETA

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
19h

Attorneys I've spoken with say for startups financial projections amount to "a hope," and whether the projections constitute fraud comes down to the details and whether there are assumptions baked in them that are "closer to the line of false."

Theranos Investor FOMO Is Due Diligence Lesson, Attys Say - Law360


Dorothy Atkins@doratki
19h

It's interesting that one of the two "smoking guns" jurors reportedly identified in their conviction of Elizabeth Holmes was skewed financial projections, which Holmes testified Balwani created.

Heather Somerville@heathersomervil
21h

Smoking guns and cynicism among jury about the testimony of #ElizabethHolmes led to conviction. Hear from jurors in the Holmes trial about how they made their decision. More brilliant reporting from ⁦@sara_randazzo⁩ ⁦@MeghanBobrowsky⁩ Jury in Elizabeth Holmes Trial Seized on Two ‘Smoking Guns’ to Convict Theranos Founder, Juror Says

 

[UndiscoveredTruth]

Elizabeth Holmes seen smiling with family less than three days after she was convicted of fraud | Daily Mail Online

ETA

Bloody Psycho! How I'd love to wipe that smile off her face....

 

[Niner]

Any news on Balwani's status hearing yesterday? I see his next is on 1/12. Holmes' next hearing on 1/12 has not been update yet in the court site.

 

[nyvictoria]

Bloody Psycho! How I'd love to wipe that smile off her face....

Let me know if you need some help.

 

[UndiscoveredTruth]

Dorothy Atkins@doratki
23h

Oh great, another trial delay.

scott budman@scottbudman
Jan 8
#Breaking: The trial of Sunny Balwani, Elizabeth Holmes’ ex-boyfriend and former Theranos COO, is being delayed. Likely until the middle of March at the earliest, becuase of #Covid concerns. It was set to start February 15.

Dorothy Atkins@doratki
17h

Judge: "It is regrettable that there is some tension between public safety and the timing of [Balwani's] trial, but we don't want to disrupt the trial in the middle b/c of health concerns. That's something we all want to avoid" h/t
@bonnieeslinger

Ex-Theranos COO May Face Trial Delay Due To COVID Surge - Law360

Dorothy Atkins@doratki
1h

Once again, if you wanna know what my voice sounds like, check out this week's episode of@Law360's Pro Say podcast! I spoke w/ @hkonnath and @mookieam
about takeaways from the Holmes verdict and where we go from here.

‎Law360's Pro Say - News & Analysis on Law and the Legal Industry: Does The Holmes Conviction Put Tech Startups On Notice? on Apple Podcasts

 

[UndiscoveredTruth]

scott budman@scottbudman
Jan 7

“It has consumed my entire adult life. When I saw “guilty” on my phone .. I just felt so good, honestly, just so relieved.”

-Tyler Schulz speaking to@JohnCarreyrou
about the Elizabeth Holmes verdict.

scott budman@scottbudman
Jan 8

#New: Just days after the verdict was announced in the Elizabeth Holmes trial, the Northern California federal court has suspended all January jury trials, citing #Omicron concerns.

*BBM*

 

[Niner]

Well the court site isn't updated yet as it stills shows trial starting for 2/15 - will check it out tomorrow. And still no Holmes hearing on 1/12.

 

[LinasK]

I think I glimpsed a headline today that mentioned that Holmes might not be sentenced until September. Couldn't find the article when I went back to look. Hoping that it was an opinion piece, because a convicted fraud shouldn't be allowed to go free for another 9 months.

 

[Niner]

Here's that article I believe you were referring to @LinasK - says: "proposed" sentencing date.

https://www.cnbc.com/2022/01/11/elizabeth-holmes-sentencing-proposed-for-september.html

Jan. 11, 2022
Key Points

• 
  
  
  • Holmes sentencing on the four charges she was found guilty of has been proposed for Sept. 12.
  • Holmes’ release would include a $500,000 bond secured by property.
  • The court filing also said the government will dismiss counts 3, 4 and 5 of the indictment in which the jury deadlocked on.

Former Theranos CEO Elizabeth Holmes, who was convicted of federal fraud charges last week, will be placed on a $500,000 bond secured by property and sentenced Sept. 12 under terms proposed in a court filing on Tuesday night.

The court filing also said the government will dismiss counts 3, 4 and 5 of the indictment in which the jury deadlocked on.
[.....]
The proposed stipulation which was filed by the government and attorneys for Holmes, said “the parties agree that a sentencing hearing following Labor Day 2022 would be appropriate in light of ongoing proceedings in a related matter.”
[.....]
The court filing also sets a timeline for both sides to file post-trial motions. U.S. District Court Judge Edward Davila would need to approve the joint motion.



And it looks Balwani's status hearing on 1/12/22 has been cancelled & there is nothing scheduled for Holmes today....

Balwani's next court date is 1/25/22.

 

[Seattle1]

We're now in Steps 8 and 9 of the Federal Trial System. Absolutely no surprise that sentencing is not expected until September. The feds have quite a checklist for that procedure (and that was before COVID)!

Post-Trial Motions

If the defendant is convicted, there are several motions that can be filed after the trial is over.

Common post-trial motions include:

• Motion for a New Trial – The court can vacate the judgment and allow for a new trial. This is rarely granted, but may be done “if the interest of justice so requires.”
• Motion for Judgment of Acquittal – Court may set aside the jury’s verdict and allow the defendant to go free.
• Motion to Vacate, Set Aside, or Correct a Sentence – Often successful for the purpose of correcting a clerical error in the sentence.

Post-Trial Motions

Sentencing

A few months after the defendant is found guilty, they return to court to be sentenced.

The judge receives guidance and assistance from several sources in order to sentence a defendant. Congress has established minimum and maximum punishments for many crimes which the judge uses to craft a sentence.

The United States Sentencing Commissions has produced a set of sentencing guidelines that recommend certain punishments for certain crimes while considering various factors. Further, the judge will look at a presentence report and consider statements from the victims as well as the defendant and lawyers.

The judge may consider a variety of aggravating or mitigating factors. These include whether the defendant has committed the same crime before, whether the defendant has expressed regret for the crime, and the nature of the crime itself.

Sentencing