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

[whitelilac]

really want to know the reasoning for the not guilty counts

 

[clearskies1]

Curious about the sentencing guidelines for these guilty counts.

Responding to my own post -- this was published a few hours before the verdict today but still informative re likely sentence etc. Elizabeth Holmes' trial is almost over, here's what the future could hold for the founder accused of fooling the world

 

[ilovewings]

Looks like she got guilty on all of the high dollar charges. Hope they lock her up tonight.

I am sure she thought she pulled another fast one and would walk on the most
serious charges--- I bet though thst she will not be locked up tonight

 

[Kavya01]

really want to know the reasoning for the not guilty counts

Wondering if defense trying to throw blame at the various lab directors and lab personnel muddled the waters enough for doubt

 

[nyvictoria]

I'm sorry guys...I was going as fast as I can -- was like

Talk about mixed emotions eh.

Thank you again for keeping us current with tweets throughout the trial!

 

[UndiscoveredTruth]

So much for my 4pm walk today. I need to sit tight for this.

I never got a heck of alot done either.

 

[clearskies1]

Everyone deserves a fair trial but there is something unsettling about all this money and time being put into a trial for someone who, whether "legally" guilty or not, was IMO morally guilty regarding people losing millions of dollars. JMO.

 

[UndiscoveredTruth]

Thank you again for keeping us current with tweets throughout the trial!

No problem at all...I've enjoyed posting the tweets for everyone following.

So many posters to thank for the many articles and info, updates, comments etc, if you contributed in any way a massive thank you to all.

 

[whitelilac]

Holmes was found guilty on four charges — three counts of wire fraud and one count of conspiracy to commit wire fraud.
Holmes faces up to 20 years in prison as well as a fine of $250,000 plus restitution for each count of wire fraud and each conspiracy count.
https://www.cnn.com/2022/01/03/tech/elizabeth-holmes-verdict/index.htmlunts


She won't get 20 years.
And she certainly will appeal, and be free until that happens.

 

[Seattle1]

Dorothy Atkins@doratki
Judge asks the clerk to read the verdict into the record, after which each juror will be polled to make sure this is the verdict. HERE WE GO

Dorothy Atkins@doratki
4m

Count 1 - conspiracy to defraud investors GUILTY

Count 2 - conspiracy to defraud patients NOT GUILTY

Count 3 - wire fraud Alan Eisenman $99k NO VERDICT

Count 4 - wire fraud Black Diamond Chris Lucas $5.3M NO VERDICT

Count 5 - wire fraud Hall Group Bryan Tolbert $4.9M NO VERDICT

Count 6 - wire fraud Brian Grossman $38M GUILTY

Count 7 - wire fraud DeVos family $100M GUIILTY

Count 8 - wire fraud former Cravath attorney Dan Mosley $6M GUILTY

Count 9 - wire fraud count for the patient Erin Tompkins who received bogus HIV results NOT GUILTY

Count 10 - wire fraud patient Mehrl K. Ellsworth who received bogus prostate cancer tests NOT GUILTY

Count 11 - wire fraud $1.1M ads that Theranos paid in the Arizona market NOT GUILTY

RSBBM

4 guilty verdicts out of 11 charges.

Going back to review testimony on Grossman, DeVos, and Mosley that the jury found more compelling over the other investors.

Big thanks @UndiscoveredTruth for all the Tweets over the weeks!

 

[Seattle1]

How Much Prison Time Could Elizabeth Holmes Face?

How Much Prison Time Could Elizabeth Holmes Face?
By Sara Randazzo

The guilty verdicts against Elizabeth Holmes mean the Theranos founder could be going to prison for years.

[Federal] Sentencing is a complex and time-consuming process, and many steps still stand between Ms. Holmes and any potential prison time.

She likely will be allowed to stay free on bail until her sentencing, which could take place six months or more from now, sentencing experts said.

The first step is having a probation officer look through the facts of the case and put together a detailed pre-sentence report. This has to be provided to each side at least 45 days ahead of the sentencing hearing.

The report will analyze what sentence seems appropriate under nonbinding federal guidelines, which include factors such as criminal history, the amount of money lost, whether someone was a leader or low-level participant in a crime and whether any special skills were used to commit the crime. "It gets really complicated in a hurry," said Douglas Berman, a professor at The Ohio State University Moritz College of Law who wrote a casebook on sentencing law.

Ms. Holmes's lawyers and the government can then push back on that report, filing their own interpretations of the guidelines and what sentences they think Ms. Holmes deserves.

There is no mandatory minimum sentence for the conspiracy and wire fraud counts she was convicted of, and each count carries a maximum of 20 years. In some cases, like the 150-year sentence given to Ponzi scheme operator Bernie Madoff, the maximum for each count is stacked. In most fraud cases, stacking isn't the norm, Mr. Berman and others familiar with sentencing said.

The final decision rests with U.S. District Judge Edward Davila, who oversaw Ms. Holmes's trial. Judges are guided to hand down a sentence that is "sufficient but not greater than necessary to achieve the purposes of punishment," Mr. Berman said.

From there, Ms. Holmes can request to stay out on bail pending an appeal of her conviction. If a sentence is relatively short, like two years or less, defense lawyers can often succeed in keeping white-collar defendants out of jail during an appeal, Mr. Berman said. For longer sentences, he said, the argument is much harder to make.

 

[mickey2942]

I don't understand why she is free on bail until sentencing. Josh Duggar was convicted in federal court, and went straight to jail. Jussie Smollett, convicted in state Court, free on bail.

Some people, straight to jail, others, free on bail until sentencing. Makes no sense to me. At least she was convicted. But with her significant access to assets, she could get on a private plane, and be gone.

 

[Seattle1]

Elizabeth Holmes' trial is almost over, here's what the future could hold for the founder accused of fooling the world

1/3/22

[..]

Jurors are now in their third week of deliberations in the Holmes trial, and after nearly four months of testimony, 32 witness accounts, and three full days of jury deliberation, Holmes’s fate remains uncertain.

But it is likely that the 37-year-old mother will face jail time, Justin Paperny, founder of federal prison consultancy White Collar Advice, told Fortune.

“I suspect she may get five to seven years in prison,” said Paperny.

So what will that look like? Paperny, who himself served an 18-month sentence for a single count of conspiracy to commit securities fraud, and who now works with people in similar situations, walked us through the process.

The sentencing
It’s very likely that Holmes will end up serving jail time, said Paperny. She already agreed to a large settlement with the Securities and Exchange Commission in 2018, in which she will return millions of shares to Theranos, pay a $500,000 fine, and abstain from serving as an officer or director of a public company for 10 years. That shows she has admitted some guilt and could sway a jury against her, said Paperny, who added that most defendants lose at trial (fewer than 1% go to trial and win their cases).

As a federal prisoner, Holmes would be eligible for a 15% reduction in her sentence for good behavior, but other than that, early release options in the federal system are very limited. “There is no real mechanism to really aggressively advance your release date in federal prison,” said Paperny.

But that doesn’t mean that Holmes will be going to prison soon, either. If Holmes loses her case, she’ll likely appeal to a higher court and could remain free while that appeal is pending. Paperny says that could take as long as 18 months. If that appeal goes south, she’ll be asked to turn herself in.

The prison
Holmes will likely be sent to a low-security prison, often referred to as Club Fed, because her alleged crimes were nonviolent and white collar. Paperny predicted that she could end up in Alderson, W.Va., where Martha Stewart served her five-month term for lying about a stock sale. That would mean no fences plus a swimming pool, volleyball, softball, tennis, racquetball, and even roller skating. Another option is a prison camp in Dublin, Calif. The prison, which is in the Bay Area, is where Felicity Huffman spent time for her role in the college admissions scandal. Amenities include a sundeck and tennis courts. They also have craft activities like crochet, watercolor painting, and origami.

[..]

 

[Kavya01]

Will she use her fake baritone in prison..... ? Just a random thought that popped into my head.

 

[Kavya01]

Ok seems like next status hearing set for Jan. 12, according to Dorothy's tweet just now
.

 

[Seattle1]

I don't understand why she is free on bail until sentencing. Josh Duggar was convicted in federal court, and went straight to jail. Jussie Smollett, convicted in state Court, free on bail.

Some people, straight to jail, others, free on bail until sentencing. Makes no sense to me. At least she was convicted. But with her significant access to assets, she could get on a private plane, and be gone.

EH is on bail due to non-violent, white-collar charges. Federal sentencing has a crazy timeframe -- it will be months!

It was a no-brainer EH would be convicted on investor fraud and wire fraud of select investors given she previously pled guilty to settled her SEC fraud charges.

Prosecutor should have focused more on the innocent patients here.

 

[Kavya01]

After this, Sunny must feel a lot more nervous about his own chances.

 

[mickey2942]

After this, Sunny must feel a lot more nervous about his own chances.

Well, he was the "mastermind". Poor Lil EH, was just hoodwinked. Glad the jury saw past the batting eyelashes.

 

[Kittybunny]

EH is on bail due to non-violent, white-collar charges. Federal sentencing has a crazy timeframe -- it will be months!

It was a no-brainer EH would be convicted on investor fraud and wire fraud of select investors given she previously pled guilty to SEC charges.

Prosecutor should have focused more on the innocent patients here.

I am really surprised about the patient charges coming out not guilty, but I wonder if this wasn't because there really wasn't an intent to defraud patients explicitly, where is it was pretty clear that there was for investors - certain ones anyway.

 

[mickey2942]

Elizabeth Holmes' trial is almost over, here's what the future could hold for the founder accused of fooling the world

1/3/22

[..]

Jurors are now in their third week of deliberations in the Holmes trial, and after nearly four months of testimony, 32 witness accounts, and three full days of jury deliberation, Holmes’s fate remains uncertain.

But it is likely that the 37-year-old mother will face jail time, Justin Paperny, founder of federal prison consultancy White Collar Advice, told Fortune.

“I suspect she may get five to seven years in prison,” said Paperny.

So what will that look like? Paperny, who himself served an 18-month sentence for a single count of conspiracy to commit securities fraud, and who now works with people in similar situations, walked us through the process.

The sentencing
It’s very likely that Holmes will end up serving jail time, said Paperny. She already agreed to a large settlement with the Securities and Exchange Commission in 2018, in which she will return millions of shares to Theranos, pay a $500,000 fine, and abstain from serving as an officer or director of a public company for 10 years. That shows she has admitted some guilt and could sway a jury against her, said Paperny, who added that most defendants lose at trial (fewer than 1% go to trial and win their cases).

As a federal prisoner, Holmes would be eligible for a 15% reduction in her sentence for good behavior, but other than that, early release options in the federal system are very limited. “There is no real mechanism to really aggressively advance your release date in federal prison,” said Paperny.

But that doesn’t mean that Holmes will be going to prison soon, either. If Holmes loses her case, she’ll likely appeal to a higher court and could remain free while that appeal is pending. Paperny says that could take as long as 18 months. If that appeal goes south, she’ll be asked to turn herself in.

The prison
Holmes will likely be sent to a low-security prison, often referred to as Club Fed, because her alleged crimes were nonviolent and white collar. Paperny predicted that she could end up in Alderson, W.Va., where Martha Stewart served her five-month term for lying about a stock sale. That would mean no fences plus a swimming pool, volleyball, softball, tennis, racquetball, and even roller skating. Another option is a prison camp in Dublin, Calif. The prison, which is in the Bay Area, is where Felicity Huffman spent time for her role in the college admissions scandal. Amenities include a sundeck and tennis courts. They also have craft activities like crochet, watercolor painting, and origami.

[..]

Painting, crafts, exercise, how nice. I would totally love to take a break from my life and have an all expense paid trip there. Oh, yeah, I work 40 plus hours a week.

Sorry. It just burns me to hear about all of their leisure activities. I think that they should carry rocks all day, sort of like "Les Miserables". Get water and hard tack for food.

The whole "camp" atmosphere, just oozes with "specialness" and "entitlement". Tanning. Tennis. Yoga. Yeah. Prison?!