CA - Elizabeth Holmes (Theranos) Wire Fraud Thread *Guilty* #3

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dbm
 
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Okay - only a day late... at least I can shorten it up a bit.

Tuesday, June 4th:
*Oral Argument Hearing (Re Appeal) (@ 9am PT) - CA – for *Elizabeth A. Holmes (34/now 40) (CEO of Theranos) charged (March, 2018) & indicted (6/14/18) & arraigned (6/15/18) with 9 counts of wire fraud & 2 counts of conspiracy to commit wire fraud and charged & indicted (4/11/20) with fraud relating to a patient's blood test. Another count of wire fraud was added in 2020, bringing the total number of felony charges to 12. Plead not guilty. $500K unsecured bond. Out on bond. Faces a maximum sentence of 20 years in prison & up to $2.75 million in fines, plus restitution, & $250K for each individual count of wire fraud & conspiracy. Holmes released on $500K bond secured by property. San Jose U.S. District Federal Court #5:18-cr-00258-EJD-1
Defrauding investors out of $700 million in funding for their blood-testing startup Theranos.
Trial began on 8/31/21 with jury selection & completed on 9/1/21. Trial began on 9/8/21 & ended with closing arguments on 12/17/21. Jury began deliberations on 12/17/22 thru 1/3/23: Total: ~51 hours. Verdict on 1/3/22: 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 GUILTY, 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. Government will dismiss counts 3, 4 & 5. Sentencing hearing on 9/26/22 & rescheduled on 10/17/22 & rescheduled to 11/18/22. Judge Edward Davila denied all 3 of Holmes’ motions requesting new trial. Judge Ed Davila sentenced Elizabeth Holmes to 11 years & 3 months (135 months) in prison plus 3 years of supervised release on 11/23/22. The judge set a surrender date for 4/27/23. Appealed-but denied. New report date is 5/30/23.
Judge Edward Davila recommended Holmes be sent to the minimum-security women's federal prison, Camp Bryan, about 100 miles north of Houston, to serve at the Federal Prison Camp in Bryan, Texas (a shared dormitory in Camp Bryan). And…. On appeal again (4/27/23). Appeal denied (5/16/23).
Indictment & court info from 4/11/20 thru 5/17/23 reference post #984 here:
https://www.websleuths.com/forums/t...s-theranos-wire-fraud-thread-2.604309/page-50
5/17/23 Update: Order Granting Ms. Holmes' unopposed administrative motion to set new reporting date of 5/30/23 no later than 2pm by Judge Edward J. Davila.
5/30/23 Update: Holmes reported for prison today in Bryan. She's beginning her sentence after being convicted on fraud & conspiracy charges.
6/12/23 Update: Holmes has “limited financial means” & should not be forced to pay $250 a month to victims of her crimes after she is released from prison, her lawyers argued in a court filing on Monday. The move from Holmes’ attorneys comes after federal prosecutors said in a separate filing last week that “clerical errors” had resulted in no payment schedule being set for Holmes’ restitution after she is released from prison. Holmes & former Theranos COO Ramesh “Sunny” Balwani were previously ordered to pay $452 million in restitution to victims of their crimes. Federal prosecutors asked that once Holmes is on supervised released, criminal monetary penalties should be paid monthly in the amount of $250, or at least 10% of her wages, whichever is greater. In the latest filing, Holmes’ attorneys argued “there is no basis in the record for the payment structure in the government’s request,” but did not object to her being asked to start paying $25 per quarter as part of her restitution while she is in prison.
7/10/23 Update: The Bureau of Prisons now lists Holmes' release date as December 29, 2032. Holmes reported to prison on May 30, 2023, meaning she'll serve just 9.5 years. According to her listed release date, Holmes will spend nine years, six months, and 29 days in prison.
1/19/24 Update: Federal regulators announced Friday that convicted fraudster Elizabeth Holmes, founder of the defunct blood testing company Theranos, has been banned from participating in federal health programs for 90 years, effectively a lifetime ban. The Office of Inspector General (OIG) for the Department of Health & Human Services (HHS) cited Holmes’s 2022 conviction for fraud & conspiracy to commit wire fraud as the reason for her ban.
5/11/24 Update: The new projected release date for Holmes, according to the Bureau of Prisons is Aug. 16, 2032, compared to the previous date of Dec. 29, 2032. This follows a separate two-year reduction which was made last 7/10/23.
6/4/24 Update: Holmes’ appeal is set to be heard Tuesday, 6/4/24 in San Francisco federal court. Holmes’ legal team & the prosecution are set to argue the case at 9am in the U.S. Court of Appeals for the Ninth Circuit. She launched her appeal in late 2022, 11 months after a jury convicted her on four felony counts of defrauding Theranos investors. She is seeking to have her conviction & 11-year prison sentence overturned, which would trigger a new trial.Lawyers for Holmes said in a December 2022 court filing that the criminal case tried at U.S. District Court in San Jose that resulted in guilty verdicts was “teeming with issues for appeal.” Among those issues, her legal team claimed, were purported errors by Judge Edward Davila, who oversaw her case & trial. Holmes alleged that Davila improperly allowed the jury to hear about regulatory action against Theranos & about her company’s voiding of all test results from its problem-plagued “Edison” machines. Those events came after any “relevant” statements Holmes made to investors, and the jury should not have been allowed to hear about them, Holmes’ lawyers argued. Holmes will not appear at the hearing in person or via video, as only attorneys are typically present before the three-judge panel that hears oral arguments in federal court appeals & the court does not arrange for incarcerated people to appear. Updates from the prisons bureau show she has shaved about two years off her sentence & is scheduled to be freed in August 2032.
*Ramesh “Sunny” Balwani (53/now 58) (CFO & President of Theranos) – Trial began on 3/22/22 & ended on 7/7/22 with a guilty verdict on all 12 counts. Sentenced on 12/7/22 to 155 months (12 years & 11 months) to prison. Must surrender on 3/16/23 by 2pm. 3/16/23: Received a reprieve-did not have to surrender because of the appeal. Appeals concluded Balwani hadn’t provided enough compelling evidence to convince them that his conviction is likely to be overturned. After the Ninth Circuit Court of Appeals issued a decision refusing Balwani’s request, U.S District Judge Edward Davila on Friday ordered him to start his nearly 13-year prison sentence on 4/20/23. In prison.
 
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  • #170
@Niner, the hearing is next Tuesday, and looks like both Holmes and Balwani are being heard


2024-06-11 9:00 am Courtroom 1, 3rd Floor Rm 338, James R. Browning U.S. Courthouse, San Francisco
Before: SCHROEDER, NGUYEN, and R. NELSON, Circuit Judges
 
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  • #171
Smelly Squirrel said:
@Niner, the hearing is next Tuesday.


2024-06-11 9:00 am Courtroom 1, 3rd Floor Rm 338, James R. Browning U.S. Courthouse, San Francisco
Before: SCHROEDER, NGUYEN, and R. NELSON, Circuit Judges
Click to expand...

Well - dang... :) Thanks I shall just repost it then - now that I shorten it up.
 
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I usually follow cases quietly. But this one, and her specifically, really bother me. She didn't just rip people off. This wasn't just an ordinary scam. At least one person is dead because of her and who knows if there are others. Just imagine the chance of misdiagnosis, or missed diagnosis due to her con. She seriously hurt people with no remorse ever shown. To see her shaving off so much time in her club fed setting is just salt in the wound in my opinion.
 
  • #175
Lorenathered said:
I usually follow cases quietly. But this one, and her specifically, really bother me. She didn't just rip people off. This wasn't just an ordinary scam. At least one person is dead because of her and who knows if there are others. Just imagine the chance of misdiagnosis, or missed diagnosis due to her con. She seriously hurt people with no remorse ever shown. To see her shaving off so much time in her club fed setting is just salt in the wound in my opinion.
Click to expand...
Shaving time is not unexpected. IIRC, you can only shave 20% off Federal time.
 
  • #176
GatorFL said:
Shaving time is not unexpected. IIRC, you can only shave 20% off Federal time.
Click to expand...

This is the State of CA. Different sentence guidelines.

Rebecca Grossman is a narcissist who deserves life in prison for boys' murders, prosecutors say​

Thu, June 6, 2024 at 1:11 PM EDT·
news.yahoo.com

Rebecca Grossman is a narcissist who deserves life in prison for boys' murders, prosecutors say

The woman convicted of murder in the deaths of two brothers run down at a crosswalk shows no remorse, refuses to take responsibility for the crash, prosecutors say.
news.yahoo.com news.yahoo.com
 
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  • #177
Lorenathered said:
I usually follow cases quietly. But this one, and her specifically, really bother me. She didn't just rip people off. This wasn't just an ordinary scam. At least one person is dead because of her and who knows if there are others. Just imagine the chance of misdiagnosis, or missed diagnosis due to her con. She seriously hurt people with no remorse ever shown. To see her shaving off so much time in her club fed setting is just salt in the wound in my opinion.
Click to expand...
I totally agree with you. To me it's more significant the patients who were injured by her false results over the people who lost money.
 
  • #178
LinasK said:
I totally agree with you. To me it's more significant the patients who were injured by her false results over the people who lost money.
Click to expand...

The rich investors who lost money went into it knowing it was an investment and they could lose money.

The patients had no knowledge of it - the investment side - and expected correct results. Just like I always expect my lab results to be reliable so did all these Holme's victims.

2 Cents
 
  • #179
Cool Cats said:
This is the State of CA. Different sentence guidelines.

Rebecca Grossman is a narcissist who deserves life in prison for boys' murders, prosecutors say​

Thu, June 6, 2024 at 1:11 PM EDT·
news.yahoo.com

Rebecca Grossman is a narcissist who deserves life in prison for boys' murders, prosecutors say

The woman convicted of murder in the deaths of two brothers run down at a crosswalk shows no remorse, refuses to take responsibility for the crash, prosecutors say.
news.yahoo.com news.yahoo.com
Click to expand...
She might be in court in California but she was brought to trial by the Feds.

en.wikipedia.org

United States v. Elizabeth A. Holmes, et al. - Wikipedia

en.wikipedia.org en.wikipedia.org

She's also in prison in Texas.

 
  • #180
Cool Cats said:
The rich investors who lost money went into it knowing it was an investment and they could lose money.

The patients had no knowledge of it - the investment side - and expected correct results. Just like I always expect my lab results to be reliable so did all these Holme's victims.

2 Cents
Click to expand...
She was ordered to repay the investors about $450 million.
 
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