GUILTY CA - Ramesh “Sunny” Balwani, 56, (Theranos), wire fraud charges
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Seattle1
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Seattle1
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LinasK
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In my opinion, she should also have been held accountable for defrauding patients. They depended upon those results when the got wrong results for Cancer diagnoses and miscarriages. Imagine the stress those poor patients felt when they wrongly thought that they had Cancer or lost a pregnancy that they wanted...
Seattle1
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Dorothy Atkins
@doratki
Judge Ed Davila says he doesn't intend to "estimate" the number of investor victims, and turns to the investor loss calculation, which informs the sentencing rage is hotly contested. (They filed expert reports on this, which I don't believe Elizabeth Holmes' counsel did.)
10:42 AM · Dec 7, 2022
@doratki
Amy Walsh of Orrick is up for Balwani, arguing like Holmes' counsel did, that the court should use the tougher "clear and convincing" standard of proof in proving investor loss, and not the more lenient "preponderance of evidence" standard the gov't suggests.
10:44 AM · Dec 7, 2022
@doratki
Walsh says the govt's methodology to calculate loss has serious errors and doesn't disentangle Theranos' value and the price investors paid for stock. "It was not a sham company. Theranos was a real company. It wasn’t a Ponzi scheme, which may make it easier to figure out [loss]"
10:49 AM · Dec 7, 2022
@doratki
Ooo, interesting. Balwani's counsel is attacking the gov't's effort to include Rupert Murdoch as an investor victim to calculate loss at issue.
10:52 AM · Dec 7, 2022
@doratki
The attorney notes that Rupert Murdoch invested $125M into Theranos but the gov't never interviewed Murdoch. "We have no idea of why Rupert Murdoch invested in Theranos, and because of that, the gov't hasn't met its burden of proof."
10:53 AM · Dec 7, 2022
https://twitter.com/doratki
Dorothy Atkins
@doratki
Balwani's counsel points out that Rupert Murdoch's chief of staff testified before the SEC and said she understood Theranos revenues were low, and she was skeptical of the investment, so the court shouldn't include Murdoch's losses in determining Sunny Balwani's sentence.
10:55 AM · Dec 7, 2022
@doratki
Judge Davila is pushing back a bit against Balwani's arguments that investors knew they were taking risks, noting that VCs are a "creature of their own design and actions" and are "difficult to track," but it doesn't appear the risk study Balwani cites accounts for fraud.
11:02 AM · Dec 7, 2022
@doratki
Judge Ed Davila says he doesn't intend to "estimate" the number of investor victims, and turns to the investor loss calculation, which informs the sentencing rage is hotly contested. (They filed expert reports on this, which I don't believe Elizabeth Holmes' counsel did.)
10:42 AM · Dec 7, 2022
@doratki
Amy Walsh of Orrick is up for Balwani, arguing like Holmes' counsel did, that the court should use the tougher "clear and convincing" standard of proof in proving investor loss, and not the more lenient "preponderance of evidence" standard the gov't suggests.
10:44 AM · Dec 7, 2022
@doratki
Walsh says the govt's methodology to calculate loss has serious errors and doesn't disentangle Theranos' value and the price investors paid for stock. "It was not a sham company. Theranos was a real company. It wasn’t a Ponzi scheme, which may make it easier to figure out [loss]"
10:49 AM · Dec 7, 2022
@doratki
Ooo, interesting. Balwani's counsel is attacking the gov't's effort to include Rupert Murdoch as an investor victim to calculate loss at issue.
10:52 AM · Dec 7, 2022
@doratki
The attorney notes that Rupert Murdoch invested $125M into Theranos but the gov't never interviewed Murdoch. "We have no idea of why Rupert Murdoch invested in Theranos, and because of that, the gov't hasn't met its burden of proof."
10:53 AM · Dec 7, 2022
https://twitter.com/doratki
Dorothy Atkins
@doratki
Balwani's counsel points out that Rupert Murdoch's chief of staff testified before the SEC and said she understood Theranos revenues were low, and she was skeptical of the investment, so the court shouldn't include Murdoch's losses in determining Sunny Balwani's sentence.
10:55 AM · Dec 7, 2022
@doratki
Judge Davila is pushing back a bit against Balwani's arguments that investors knew they were taking risks, noting that VCs are a "creature of their own design and actions" and are "difficult to track," but it doesn't appear the risk study Balwani cites accounts for fraud.
11:02 AM · Dec 7, 2022
Seattle1
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Dorothy Atkins
@doratki
Balwani's counsel says Balwani lost millions of dollars he invested in Theranos, and he shouldn't be on the hook for all investor losses, b/c he left Theranos in May 2016, "before the investors lost their money."
11:12 AM · Dec 7, 2022
@doratki
Even Judge Davila seems a little shocked by Balwani's argument that he shouldn't be on the hook for any Theranos investor loss despite his investor fraud conviction. Judge: You agree the court should find no loss? Balwani's counsel: "For Mr. Balwani, it’s zero."
11:16 AM · Dec 7, 2022
@doratki
Prosecutor Robert Leach is up, arguing that case law doesn't require the government to call each and every Theranos investor who lost money to the stand to testify to their losses for the purposes of sentencing. (Too bad. Would've liked to see Murdoch under cross.)
11:21 AM · Dec 7, 2022
@doratki
Judge Ed Davila asked if there are any Theranos victims in court today who want to be heard. "Not to my knowledge," Leach says.
11:22 AM · Dec 7, 2022
@doratki
The attorneys are still arguing over the expert reports and loss calculation. Usually sentencing hearings are morbid regardless of the crime - like watching a car crash where you watch families and lives being destroyed in real time. This one feels more like an accounting class.
11:32 AM · Dec 7, 2022
@doratki
Winding down on these expert report arguments, and Judge Ed Davila observes that the experts were more experienced in "business disputes and family law matters," as opposed to criminal matters based on their CVs. (Don't think it's a stretch to say he seems unimpressed.)
11:43 AM · Dec 7, 2022
@doratki
Next up - whether Sunny Balwani should get a tougher sentencing for leading the conspiracy. Prosecutor Robert Leach says "There's a complicated relationship between Elizabeth Holmes and Sunny Balwani," & their texts show Holmes led sometimes, and Balwani did other times.
11:50 AM · Dec 7, 2022
@doratki
Prosecutor adds it's odd that neither would be considered leaders of the fraud. Meanwhile, Balwani's counsel argues Elizabeth Holmes was the leader. Judge Davila notes conspiracies can have "co-leaders" and indicates he likely won't give Balwani the enhancement.
11:52 AM · Dec 7, 2022
@doratki
My computer died and the parties just fought over the court giving Balwani a tougher sentence for consciously or recklessly putting patient health at risk. Holmes didn’t get the enhancement, and Balwani’s counsel vigorously objects. Court’s taking a 20 min recess.
12:24 PM · Dec 7, 2022
@doratki
Balwani's counsel says Balwani lost millions of dollars he invested in Theranos, and he shouldn't be on the hook for all investor losses, b/c he left Theranos in May 2016, "before the investors lost their money."
11:12 AM · Dec 7, 2022
@doratki
Even Judge Davila seems a little shocked by Balwani's argument that he shouldn't be on the hook for any Theranos investor loss despite his investor fraud conviction. Judge: You agree the court should find no loss? Balwani's counsel: "For Mr. Balwani, it’s zero."
11:16 AM · Dec 7, 2022
@doratki
Prosecutor Robert Leach is up, arguing that case law doesn't require the government to call each and every Theranos investor who lost money to the stand to testify to their losses for the purposes of sentencing. (Too bad. Would've liked to see Murdoch under cross.)
11:21 AM · Dec 7, 2022
@doratki
Judge Ed Davila asked if there are any Theranos victims in court today who want to be heard. "Not to my knowledge," Leach says.
11:22 AM · Dec 7, 2022
@doratki
The attorneys are still arguing over the expert reports and loss calculation. Usually sentencing hearings are morbid regardless of the crime - like watching a car crash where you watch families and lives being destroyed in real time. This one feels more like an accounting class.
11:32 AM · Dec 7, 2022
@doratki
Winding down on these expert report arguments, and Judge Ed Davila observes that the experts were more experienced in "business disputes and family law matters," as opposed to criminal matters based on their CVs. (Don't think it's a stretch to say he seems unimpressed.)
11:43 AM · Dec 7, 2022
@doratki
Next up - whether Sunny Balwani should get a tougher sentencing for leading the conspiracy. Prosecutor Robert Leach says "There's a complicated relationship between Elizabeth Holmes and Sunny Balwani," & their texts show Holmes led sometimes, and Balwani did other times.
11:50 AM · Dec 7, 2022
@doratki
Prosecutor adds it's odd that neither would be considered leaders of the fraud. Meanwhile, Balwani's counsel argues Elizabeth Holmes was the leader. Judge Davila notes conspiracies can have "co-leaders" and indicates he likely won't give Balwani the enhancement.
11:52 AM · Dec 7, 2022
@doratki
My computer died and the parties just fought over the court giving Balwani a tougher sentence for consciously or recklessly putting patient health at risk. Holmes didn’t get the enhancement, and Balwani’s counsel vigorously objects. Court’s taking a 20 min recess.
12:24 PM · Dec 7, 2022
Seattle1
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Dorothy Atkins
@doratki
We’re back, and Judge Davila says he’s going to apply the preponderance of evidence standard in calculating investor loss. (He did the same in Holmes’ sentencing.) Judge Davila notes that his calculation doesn’t include data from after may 2016 when Balwani left Theranos.
12:55 PM · Dec 7, 2022
@doratki
Judge Ed Davila says he won’t definitively say he’s “troubled” by the lengthy expert reports, but he points out this is a criminal case, not a civil case, and his job is to find a reasonable amount at issue. “We’re not in a business context” in a dissolution proceeding, he says.
1:01 PM · Dec 7, 2022
@doratki
Judge Ed Davila finds there are 12 investor victims for the purpose of calculating Balwani’s sentencing, including Rupert Murdoch. He won’t give Balwani a tougher sentence for leading the conspiracy, but he found Balwani recklessly put patients at risk, since he led the lab.
1:06 PM · Dec 7, 2022
Dorothy Atkins
@doratki
Judge Ed Davila finds the total investor loss for Balwani’s sentencing calculation is $120 million, and given all his findings, Balwani’s sentencing guideline range is 135-168 months.
1:08 PM · Dec 7, 2022
@doratki
We’re back, and Judge Davila says he’s going to apply the preponderance of evidence standard in calculating investor loss. (He did the same in Holmes’ sentencing.) Judge Davila notes that his calculation doesn’t include data from after may 2016 when Balwani left Theranos.
12:55 PM · Dec 7, 2022
@doratki
Judge Ed Davila says he won’t definitively say he’s “troubled” by the lengthy expert reports, but he points out this is a criminal case, not a civil case, and his job is to find a reasonable amount at issue. “We’re not in a business context” in a dissolution proceeding, he says.
1:01 PM · Dec 7, 2022
@doratki
Judge Ed Davila finds there are 12 investor victims for the purpose of calculating Balwani’s sentencing, including Rupert Murdoch. He won’t give Balwani a tougher sentence for leading the conspiracy, but he found Balwani recklessly put patients at risk, since he led the lab.
1:06 PM · Dec 7, 2022
Dorothy Atkins
@doratki
Judge Ed Davila finds the total investor loss for Balwani’s sentencing calculation is $120 million, and given all his findings, Balwani’s sentencing guideline range is 135-168 months.
1:08 PM · Dec 7, 2022
Seattle1
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@doratki
Now the parties will try to sway the judge where Balwani’s sentence should fall on the guideline range - 11.25-14 years.
1:10 PM · Dec 7, 2022
@doratki
A prosecutor argues 15 years is appropriate due to Balwani’s role in preparing financial projections, his role in the Walgreens deal and his direct communications with investors. Balwani also had “significant autonomy” in Theranos’ lab where “the greatest harm occurred,” he says.
1:14 PM · Dec 7, 2022
@doratki
The prosecutor basically is recapping trial evidence and witness testimony in a mini closing argument. (At this point, Judge Davila knows the trial testimony and evidence probably just as well, if not better, than anyone else on the planet.)
1:23 PM · Dec 7, 2022
@doratki
Prosecutor says Balwani “used the media” to perpetuate Theranos’ fraud. (Crazy how often the media gets used that way tbh.)
1:29 PM · Dec 7, 2022
@doratki
Prosecutor Jeff Schenk wrapped for the govt. Jeff Coopersmith is up for Balwani, arguing that sentencing guidelines are just a starting point and don’t need to be followed.
1:44 PM · Dec 7, 2022
@doratki
Balwani’s counsel argues that Balwani has “a long history of giving,” and he worked at Theranos to help others, and invested and lost nearly $5 million in the company. Nothing in the record shows he’s greedy, the attorney says.
1:50 PM · Dec 7, 2022
@doratki
"Ms. Holmes received a very harsh sentence,” Balwani’s counsel says. And part of that is likely due to the message that it would send to Silicon Valley, but Balwani didn’t seek the media attention and didn’t fly too close to the sun, he says. “He didn’t seek the media.”
1:55 PM · Dec 7, 2022
@doratki
Balwani’s counsel argues that Balwani is in his late 50s and isn’t at risk of recidivism, in part bc no one wants to hire him. “He’s unfortunately radioactive as a result of this whole affair,” he says.
2:02 PM · Dec 7, 2022
@doratki
Balwani's counsel wrapped. Sunny Balwani declined to make a statement to the court. Now for the judge and the sentence.
2:20 PM · Dec 7, 2022
@doratki
Judge Davila notes that sentencing is individualized and the court was told about Balwani's charitable gifts, some of which were before Theranos, but many were after. He also paid his relatives' tuition and donated to his temple. "That shows another side of him," the judge says.
2:23 PM · Dec 7, 2022
@doratki
Judge Davila points out Balwani got his degree & worked for Microsoft, before starting a business and selling it. "That's something that's very common in this valley, it's interesting, perhaps tragic, to look at the path of this case and to realize that path has come full circle"
2:25 PM · Dec 7, 2022
@doratki
Judge Davila suggests this was a great idea and Balwani was "all in on it." But "then there were problems." ""Why did that have to happen?" Judge Davila asked. "Defendant chose to go forward with deception, I'll call it, and continued to perpetuate the fraud..."
2:29 PM · Dec 7, 2022
@doratki
Judge Davila says "I think it’s just that enduring question of why did such a promising company come to an end," and Mr. Balwani’s involvement in it. The evidence shows he knew of the fraud - "They were lies, they were fraud."
2:32 PM · Dec 7, 2022
@doratki
The judge questions whether the lies were made in necessity to keep the company going, and suggested they may have been "acts of desperation." But he says they're troubling.
2:33 PM · Dec 7, 2022
@doratki
Judge Ed Davila will decide restitution later. He sentenced former Theranos executive Ramesh "Sunny" Balwani to 155 months in prison, and three years of probation.
2:35 PM · Dec 7, 2022
Judge Ed Davila set a March 15 surrender date.
2:37 PM · Dec 7, 2022
@doratki
My laptop has once again died at the worst time, so reporting from the phone. Balwani’s counsel asked to have him serve in a minimum security prison. With that, it’s over.
2:41 PM · Dec 7, 2022
https://twitter.com/doratki
Dorothy Atkins
@doratki
Balwani packed his things and whispered something to his family members. He didn’t get any hugs, and there were no visible tears in the courtroom.
2:42 PM · Dec 7, 2022
Now the parties will try to sway the judge where Balwani’s sentence should fall on the guideline range - 11.25-14 years.
1:10 PM · Dec 7, 2022
@doratki
A prosecutor argues 15 years is appropriate due to Balwani’s role in preparing financial projections, his role in the Walgreens deal and his direct communications with investors. Balwani also had “significant autonomy” in Theranos’ lab where “the greatest harm occurred,” he says.
1:14 PM · Dec 7, 2022
@doratki
The prosecutor basically is recapping trial evidence and witness testimony in a mini closing argument. (At this point, Judge Davila knows the trial testimony and evidence probably just as well, if not better, than anyone else on the planet.)
1:23 PM · Dec 7, 2022
@doratki
Prosecutor says Balwani “used the media” to perpetuate Theranos’ fraud. (Crazy how often the media gets used that way tbh.)
1:29 PM · Dec 7, 2022
@doratki
Prosecutor Jeff Schenk wrapped for the govt. Jeff Coopersmith is up for Balwani, arguing that sentencing guidelines are just a starting point and don’t need to be followed.
1:44 PM · Dec 7, 2022
@doratki
Balwani’s counsel argues that Balwani has “a long history of giving,” and he worked at Theranos to help others, and invested and lost nearly $5 million in the company. Nothing in the record shows he’s greedy, the attorney says.
1:50 PM · Dec 7, 2022
@doratki
"Ms. Holmes received a very harsh sentence,” Balwani’s counsel says. And part of that is likely due to the message that it would send to Silicon Valley, but Balwani didn’t seek the media attention and didn’t fly too close to the sun, he says. “He didn’t seek the media.”
1:55 PM · Dec 7, 2022
@doratki
Balwani’s counsel argues that Balwani is in his late 50s and isn’t at risk of recidivism, in part bc no one wants to hire him. “He’s unfortunately radioactive as a result of this whole affair,” he says.
2:02 PM · Dec 7, 2022
@doratki
Balwani's counsel wrapped. Sunny Balwani declined to make a statement to the court. Now for the judge and the sentence.
2:20 PM · Dec 7, 2022
@doratki
Judge Davila notes that sentencing is individualized and the court was told about Balwani's charitable gifts, some of which were before Theranos, but many were after. He also paid his relatives' tuition and donated to his temple. "That shows another side of him," the judge says.
2:23 PM · Dec 7, 2022
@doratki
Judge Davila points out Balwani got his degree & worked for Microsoft, before starting a business and selling it. "That's something that's very common in this valley, it's interesting, perhaps tragic, to look at the path of this case and to realize that path has come full circle"
2:25 PM · Dec 7, 2022
@doratki
Judge Davila suggests this was a great idea and Balwani was "all in on it." But "then there were problems." ""Why did that have to happen?" Judge Davila asked. "Defendant chose to go forward with deception, I'll call it, and continued to perpetuate the fraud..."
2:29 PM · Dec 7, 2022
@doratki
Judge Davila says "I think it’s just that enduring question of why did such a promising company come to an end," and Mr. Balwani’s involvement in it. The evidence shows he knew of the fraud - "They were lies, they were fraud."
2:32 PM · Dec 7, 2022
@doratki
The judge questions whether the lies were made in necessity to keep the company going, and suggested they may have been "acts of desperation." But he says they're troubling.
2:33 PM · Dec 7, 2022
@doratki
Judge Ed Davila will decide restitution later. He sentenced former Theranos executive Ramesh "Sunny" Balwani to 155 months in prison, and three years of probation.
2:35 PM · Dec 7, 2022
Judge Ed Davila set a March 15 surrender date.
2:37 PM · Dec 7, 2022
@doratki
My laptop has once again died at the worst time, so reporting from the phone. Balwani’s counsel asked to have him serve in a minimum security prison. With that, it’s over.
2:41 PM · Dec 7, 2022
https://twitter.com/doratki
Dorothy Atkins
@doratki
Balwani packed his things and whispered something to his family members. He didn’t get any hugs, and there were no visible tears in the courtroom.
2:42 PM · Dec 7, 2022
mickey2942
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One thing that really bothers me, is that other start up companies, who may actually have technology to help people, will be out of luck raising funds for development after this debacle.
Seattle1
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Shout out to Dorothy Atkins -- Senior Reporter @Law360 for the brilliant coverage of the Theranos debacle! She's a rock star.
Very interesting that RSB, the only defendant convicted of putting patients' lives at risk, yet not one victim came to court to speak for themselves (i.e., damages calculation).
And not surprised that RSB spoke not one word in court.
Following mostly federal cases, I'm a huge fan of Judge Davila. He clearly understood Theranos breakthrough innovation (not finger stick or the best-seller & movie versions) and in his own words could only ask "Why did such a promising company come to an end." ... "They lied, there was fraud."
MOO
Very interesting that RSB, the only defendant convicted of putting patients' lives at risk, yet not one victim came to court to speak for themselves (i.e., damages calculation).
And not surprised that RSB spoke not one word in court.
Following mostly federal cases, I'm a huge fan of Judge Davila. He clearly understood Theranos breakthrough innovation (not finger stick or the best-seller & movie versions) and in his own words could only ask "Why did such a promising company come to an end." ... "They lied, there was fraud."
MOO
Last edited:
Seattle1
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True for some but not all. There were blood tech companies (and investors) waiting in the wings to take over where Theranos left off.
It was never Holmes's innovative vision for rapid blood analysis that was the failure, but her implementation of that vision. The demise started with her stubbornness over not wanting to let go of the fingerstick blood draw for all types of diagnostic testing. Using too little blood for the wrong test perpetuated the first lie...requiring the need to falsify the results, then came intimidation, secrecy, failed QAQC,...and ultimately a prison term for four counts of fraud and for deceiving investors.
“Like Theranos, but it works”–health startup Genalyte proves its worth
Thera-who? Biotech firms are pushing what’s possible with blood
A look at the startups bringing fresh blood to biotech—and relegating Theranos, and its former CEO Elizabeth Holmes, who's now on trial, to the past.
Seattle1
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FYI-- federal prison term:
What we know for certain is that most prisoners (serving less than life sentences) only serve 85% of their time-- after accounting for the amendment by congress to § 3624(b) to allow a maximum of 54 days of good behavior time for each year of the sentence—54 days is almost exactly 15% of the sentence handed down.
https://famm.org/wp-content/uploads/faq-federal-good-time-credit.pdf
What we know for certain is that most prisoners (serving less than life sentences) only serve 85% of their time-- after accounting for the amendment by congress to § 3624(b) to allow a maximum of 54 days of good behavior time for each year of the sentence—54 days is almost exactly 15% of the sentence handed down.
https://famm.org/wp-content/uploads/faq-federal-good-time-credit.pdf
UndiscoveredTruth
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LinasK
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Elizabeth Holmes' former right-hand man files notice to appeal Theranos fraud conviction
Balwani was found guilty in July on 12 counts and sentenced in December to 13 years in prison.
Seattle1
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Found an article when he is supposed to report to prison.
Theranos exec Sunny Balwani sentenced to 13 years in prison for defrauding patients and investors | TechCrunch
Unlike the jury at Holmes' trial, the jury at Balwani's trial held him accountable for defrauding patients, not just investors.techcrunch.com
Balwani will report to prison on March 15.
Balwani trial case docket also terminated as he has an Appeal number. I pulled out select docket entries fyi:
| 12/07/2022 | 1682 | Minute Entry for proceedings held before Judge Edward J. Davila: Sentencing held on 12/7/2022 for Ramesh "Sunny" Balwani (2). The Court addresses objections to the Presentence Investigation Report. Arguments of Counsel heard. The Court rules on objections; separate Order to issue. Defendant is sentenced on counts 1ssss, 2ssss, 3ssss-12ssss of the 3rd Superseding Indictment (ECF No. 469 , filed 7/28/2020) to 155 months BOP custody as to each counts 1,2,3-8, 9-12 to be served concurrently, 3 years supervised release as to each counts 1,2,3-8, 9-12 to be served concurrently, $25,000 in fine, $1,200 special assessment (restitution hearing to be set). The Court adopts the Probation Officer's recommendation as to the standard and special conditions of supervised release. The Court requests Counsel meet and confer on a schedule for a restitution hearing. The Court also requests Counsel confer with Co-Defendant Counsel regarding whether a joint restitution hearing should be held, and to provide the information and proposed dates and schedule to the Courtroom Deputy. The Court makes the following recommendation: This is a non-violent offense, and Defendant has no history of violence or other convictions. The Court recommends the Defendant be designated to the Lompoc minimum security satellite camp in Santa Barbara County, California. The Court finds that family visitation enhances rehabilitation. Defendant shall self-surrender on March 15, 2023, at 2:00 PM to the designated facility; if a facility has not been designated, Defendant shall self-surrender to the U.S. Marshals office. All present conditions of release remain in effect until such surrender. Plaintiff's Attorneys: Robert Leach, John Bostic, Jeffrey Schenk. Also Present: Maddi Wachs. Defendant's Attorneys: Jeffrey Coopersmith, Amy Walsh, Cazares, Aaron Brecher, Amanda McDowell, Shawn Estrada, Sachi Schuricht, Reese Onate, and Serena Nichols. Probation Officer: Jessica Goldberry. Court Reporter: Irene Rodriguez. Time: 10:09-12:19 PM; 12:50-2:40 PM: (4 hrs.). Defendant Present: Yes. Defendant in Custody: No. (cfe, COURT STAFF) (Filed on 12/7/2022) (Entered: 12/08/2022) |
| 12/20/2022 | 1702 | NOTICE OF APPEAL Re: 1682 by Ramesh "Sunny" Balwani ( Filing fee $ 505, receipt number ACANDC-17841361.) (Attachments: # 1 Representation Statement)(Davies, Mark) (Filed on 12/20/2022) (linked) Modified on 12/21/2022 (cfe, COURT STAFF). (Entered: 12/20/2022) |
CAND-ECF
Seattle1
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Court Granted Order to Permit Travel during the holidays:
ecf.cand.uscourts.gov
CAND-ECF-Confirm Request
Cool Cats
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Elizabeth Holmes tried to ‘flee’ US with one-way Mexico ticket, prosecutors say
New court filing says ex-Theranos founder booked flight departing 26 January last year, shortly after fraud conviction
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I shall shorten this up a bit...
Friday, February 17th:
*Motion for Misc. Relief & Restitution Hearing (@ 9:30am PT) - CA – *Ramesh “Sunny” Balwani (53/now 57) (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. Unsecured bon $500K was modified (7/7/22) to secured $750K 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. Plead not guilty.
Judge Edward J. Davila (U.S. District Court, San Jose) Federal Court 5:18-cr-00258-EJD-2 / SEC 5:18-cv-01603 filed 3/14/18 pending; plead not guilty.
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial began on 3/22/22 & ended 7/7/22. Jury left: 12 jurors (8 women & 4 men) & 2 alternates (2 men). Jury change: Judge excused #10 (vacation plans) & replaces her with alternate #5. Jury Self: 12 jurors (7 women & 5 men) & 1 alternate (man). Jury Deliberations: Total: ~35 hours of deliberations. Returned with a verdict of guilty of all 12 charges. Sentencing hearing on 12/7/22.
Indictment & court info (Jury selection/trial/jury deliberations) from 4/11/20 thru 11/7/22 reference post #271 here:
https://www.websleuths.com/forums/t...56-theranos-wire-fraud-charges.614821/page-14
12/2/22 Update: The government argued in a court filing this week that 180 months behind bars "would reflect the seriousness of the offenses, promote respect for the law, provide for just punishment for the offenses & deter Balwani & others." Balwani's attorneys, in turn, are asking for leniency from the judge. The defense team argued in its own brief that Balwani should only receive probation & if he is sentenced to serve any time at all it should be on home confinement. Sentencing hearing on 12/7/22.
12/7/22 Update: Judge Davila says he has read all of the relevant documents, including a +100 page supplemental expert report that the defense filed yesterday. Judge Davila says Balwani filed more than 40 objections to the probation office's presentence investigation report, mos of which he considers "contextual" objections & he says only 4 are substantive. Prosecutor Robert Leach says that is no need to rule on all of the objections in order to sentence Balwani & defense counsel agrees. Judge Davila is nevertheless going thru each objection & ruling on each. Judge Davila finds the total investor loss for Balwani's sentencing calculation is $120M & given all his findings, Bałwani sentenced to 155 months in prison (12 years and 11 months) & 3 years probation. Balwani will report to prison on 3/15/23. Restitution hearing not set yet.
For more info see posts #281 to 283 & 285 to 288 here:
https://www.websleuths.com/forums/t...56-theranos-wire-fraud-charges.614821/page-15
12/21/22: Balwani has filed a notice to appeal his criminal fraud conviction & prison sentence tied to his role in the once high-flying company. “Please take notice that Defendant Balwani appeals to the United States Court of Appeals for the Ninth Circuit from the sentence of the district court announced on December 7, 2022,” Balwani’s attorney wrote in a court document filed on Tuesday. In July, Balwani’s jury returned guilty verdicts against the former executive on a dozen wire fraud & conspiracy charges tied to his roles at Theranos.
12/7/22 Update: The Court adopts the Probation Officer's recommendation as to the standard & special conditions of supervised release. The Court requests Counsel meet & confer on a schedule for a restitution hearing. The Court also requests Counsel confer with Co-Defendant Counsel regarding whether a joint restitution hearing should be held, and to provide the information & proposed dates & schedule to the Courtroom Deputy. The Court makes the following recommendation: This is a non-violent offense, and Defendant has no history of violence or other convictions. The Court recommends the Defendant be designated to the Lompoc minimum security satellite camp in Santa Barbara County, California. The Court finds that family visitation enhances rehabilitation. Defendant shall self-surrender on 3/15/23, at 2pm to the designated facility; if a facility has not been designated, Defendant shall self-surrender to the U.S. Marshals office. All present conditions of release remain in effect until such surrender.
12/12/22 Update: Court Order: Balwani is authorized to travel during the period 12/17/22 to 1/5/22 to visit family in Ohio.
12/21/22 Update: USCA Case Number 22-10338 for 1702 Notice of Appeal filed by Balwani. 1/17/23 Update: Motion for release pending Appeal & Restitution hearing on 2/17/23.
*Elizabeth A. Holmes (34/now 38) (CEO of Theranos) – Trial began on 9/8/21 & ended 1/3/22 with a verdict of guilty on 4 counts of 11. Sentencing hearing was to be on 10/17/22 but was delayed with motions for new trial Filed (5/27/22) for dismissal of all charges. All 3 motions for dismissal/new trial-denied. Sentenced on 11/18/22 to 11.25 years (135 months) in prison & 3 years supervised release. Motions hearing for miscellaneous relief on 3/17/23. The judge set a surrender date for 4/27/23. The Court makes the following recommendation: The Defendant be designated to the Federal Prison Camp at Bryan, Texas.
Friday, February 17th:
*Motion for Misc. Relief & Restitution Hearing (@ 9:30am PT) - CA – *Ramesh “Sunny” Balwani (53/now 57) (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. Unsecured bon $500K was modified (7/7/22) to secured $750K 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. Plead not guilty.
Judge Edward J. Davila (U.S. District Court, San Jose) Federal Court 5:18-cr-00258-EJD-2 / SEC 5:18-cv-01603 filed 3/14/18 pending; plead not guilty.
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial began on 3/22/22 & ended 7/7/22. Jury left: 12 jurors (8 women & 4 men) & 2 alternates (2 men). Jury change: Judge excused #10 (vacation plans) & replaces her with alternate #5. Jury Self: 12 jurors (7 women & 5 men) & 1 alternate (man). Jury Deliberations: Total: ~35 hours of deliberations. Returned with a verdict of guilty of all 12 charges. Sentencing hearing on 12/7/22.
Indictment & court info (Jury selection/trial/jury deliberations) from 4/11/20 thru 11/7/22 reference post #271 here:
https://www.websleuths.com/forums/t...56-theranos-wire-fraud-charges.614821/page-14
12/2/22 Update: The government argued in a court filing this week that 180 months behind bars "would reflect the seriousness of the offenses, promote respect for the law, provide for just punishment for the offenses & deter Balwani & others." Balwani's attorneys, in turn, are asking for leniency from the judge. The defense team argued in its own brief that Balwani should only receive probation & if he is sentenced to serve any time at all it should be on home confinement. Sentencing hearing on 12/7/22.
12/7/22 Update: Judge Davila says he has read all of the relevant documents, including a +100 page supplemental expert report that the defense filed yesterday. Judge Davila says Balwani filed more than 40 objections to the probation office's presentence investigation report, mos of which he considers "contextual" objections & he says only 4 are substantive. Prosecutor Robert Leach says that is no need to rule on all of the objections in order to sentence Balwani & defense counsel agrees. Judge Davila is nevertheless going thru each objection & ruling on each. Judge Davila finds the total investor loss for Balwani's sentencing calculation is $120M & given all his findings, Bałwani sentenced to 155 months in prison (12 years and 11 months) & 3 years probation. Balwani will report to prison on 3/15/23. Restitution hearing not set yet.
For more info see posts #281 to 283 & 285 to 288 here:
https://www.websleuths.com/forums/t...56-theranos-wire-fraud-charges.614821/page-15
12/21/22: Balwani has filed a notice to appeal his criminal fraud conviction & prison sentence tied to his role in the once high-flying company. “Please take notice that Defendant Balwani appeals to the United States Court of Appeals for the Ninth Circuit from the sentence of the district court announced on December 7, 2022,” Balwani’s attorney wrote in a court document filed on Tuesday. In July, Balwani’s jury returned guilty verdicts against the former executive on a dozen wire fraud & conspiracy charges tied to his roles at Theranos.
12/7/22 Update: The Court adopts the Probation Officer's recommendation as to the standard & special conditions of supervised release. The Court requests Counsel meet & confer on a schedule for a restitution hearing. The Court also requests Counsel confer with Co-Defendant Counsel regarding whether a joint restitution hearing should be held, and to provide the information & proposed dates & schedule to the Courtroom Deputy. The Court makes the following recommendation: This is a non-violent offense, and Defendant has no history of violence or other convictions. The Court recommends the Defendant be designated to the Lompoc minimum security satellite camp in Santa Barbara County, California. The Court finds that family visitation enhances rehabilitation. Defendant shall self-surrender on 3/15/23, at 2pm to the designated facility; if a facility has not been designated, Defendant shall self-surrender to the U.S. Marshals office. All present conditions of release remain in effect until such surrender.
12/12/22 Update: Court Order: Balwani is authorized to travel during the period 12/17/22 to 1/5/22 to visit family in Ohio.
12/21/22 Update: USCA Case Number 22-10338 for 1702 Notice of Appeal filed by Balwani. 1/17/23 Update: Motion for release pending Appeal & Restitution hearing on 2/17/23.
*Elizabeth A. Holmes (34/now 38) (CEO of Theranos) – Trial began on 9/8/21 & ended 1/3/22 with a verdict of guilty on 4 counts of 11. Sentencing hearing was to be on 10/17/22 but was delayed with motions for new trial Filed (5/27/22) for dismissal of all charges. All 3 motions for dismissal/new trial-denied. Sentenced on 11/18/22 to 11.25 years (135 months) in prison & 3 years supervised release. Motions hearing for miscellaneous relief on 3/17/23. The judge set a surrender date for 4/27/23. The Court makes the following recommendation: The Defendant be designated to the Federal Prison Camp at Bryan, Texas.