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

[Seattle1]

Here Are All Of Elizabeth Holmes' Criminal Charges

The long, winding, and often unbelievable journey of Holmes has been at the forefront of people’s minds as of late, particularly as her story has been made into a podcast, a documentary, and soon a feature film.
But while Theranos is no more, Elizabeth Holmes's fate still hangs in the balance. Below are her current criminal charges.

Charged with massive fraud
The SEC charged Holmes and former Theranos chief operating officer and president Ramesh “Sunny” Balwani in March 2018. According to the complaint, the pair stood accused of “raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance.”
Indicted on nine counts of wire fraud
In June 2018, following a long investigation (which included a deposition by Holmes in 2017) by the U.S. Attorney's office in San Francisco, a federal jury indicted her, along with Balwani, on nine counts of wire fraud.
Specifically, these charges pertain to the allegation that Theranos defrauded its investors out of millions of dollars while also deceiving — and putting at risk — the lives of hundreds of patients and doctors.
Both Holmes and Balwani pleaded not guilty to these charges.
Indicted on conspiracy to commit wire fraud
Along with nine counts of wire fraud, Holmes and Balwani were also indicted on two counts of conspiracy to commit wire fraud. Both also pleaded not guilty to these charges.
The road ahead
Holmes and Balwani each face a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution, for each individual count of wire fraud and conspiracy, according to the U.S. Attorneys office.

Thread #1
Thread #2

 

[Seattle1]

https://twitter.com/x/status/1663307488467337216

 

[LinasK]

Inside the Club Fed prison where Elizabeth Holmes will serve 11 years

Theranos fraudster Elizabeth Holmes is set to surrender to authorities on May 30, and will swiftly begin her 11-year sentence at Federal Prison Camp, Bryan.

www.dailymail.co.uk

UPDATED: 15:17 EDT, 29 May 2023

Inside the 'Club Fed' prison where Elizabeth Holmes will be locked up alongside celeb inmate Jen Shah: Theranos fraudster will sleep in dorm-style rooms instead of cells (and can take business classes!) while serving 11-year sentence​

• Holmes to rise at 6am and have an hour for meals including burgers and hot dogs
• The former billionaire will work for between 12 cents and $1.15 an hour and can take business classes or learn to drive a fork-lift
• READ MORE: What life in federal prison will be like for Holmes
• EXCLUSIVE: Holmes spends final weekend at beach with her partner and kids

No more "green juice" smoothies.

 

[LinasK]

Where does she show up tomorrow to being her sentence?

Is she responsible for her transportation to prison?

Does she just fly in to the nearest airport in a private plane and take a limo to the prison gate?

I just read 2pm. I'm assuming that's Texas time.

 

[Niner]

Tuesday, May 30th:
*Surrender for Prison Sentence (no later than 2pm CT/Texas) - CA – for *Elizabeth A. Holmes (34/now 39) (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.
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 4/17/23 reference post #804 here:
https://www.websleuths.com/forums/t...s-theranos-wire-fraud-thread-2.604309/page-41
3/7/23 Update: Holmes is fighting a demand to pay nearly $900 million in restitution to investors in her failed company. In a recent court filing.
4/25/23 Update: Holmes will not go to prison this week, despite a judge’s order that she begin serving her 11-year sentence on Thursday, 4/27/23. Late Tuesday, Holmes’ attorneys appealed that ruling to the U.S. 9th Circuit Court of Appeals in San Francisco. Under the court’s rules, that means Holmes will remain free on bail for now. In their last-minute appeal, Holmes’ attorneys said Davila’s ruling contained “numerous, inexplicable errors,” including referring to “patient fraud counts” when Holmes was acquitted on the charges that she defrauded Theranos patients. They say she should be allowed to remain free while she appeals her conviction because the appeal is “likely to result in reversal.” The government has 10 days to respond to the motion.
5/16/23 Update: Order on Restitution filed (case # 5:18-cr-00258 EJD) for Holmes & Balwani. The Court Orders restitution in the amount of $452,047,268. Both defendants will be jointly & severally liable for this sum. Ordered by Judge Eward J. Davila, U.S. District Judge.
Before Circuit Judges Graber, Nguyen & Sung. Appellant’s motion for bail pending appeal (Docket Entry Nos. 36-38) is denied. Appellant has not shown that: (1) the appeal raises a “substantial question” of law or fact that is “fairly debatable,” and (2) if that question is decided in appellant’s favor, the likely outcome is reversal, an order for a new trial on all counts resulting in imprisonment, a sentence that includes no term of imprisonment, or a sentence with a term of imprisonment less than time served plus the expected duration of the appeal process. See 18 U.S.C. § 3143(b)(1)(B); United States v. Handy, 761 F.2d 1279, 1283 (9th Cir. 1985). No prison date set yet.
5/17/23 Update: Holmes is requesting to start her time behind bars on 5/30/23 after losing a bid to remain out of prison while appealing multiple convictions of defrauding the company’s investors. On Tuesday, a three-judge panel for the 9th Circuit Court of Appeals in San Francisco rejected a motion from Holmes’ lawyers asking that the embattled entrepreneur & mother of two be spared from a lower court’s order also denying her request to remain free on bail, pending an appeal of her case. A date for Holmes to report to prison was not included in the order. However, in a new court document filed Wednesday, Holmes asked the district court to set a new reporting date of 5/30/23 so that she could get personal affairs in order. "Ms. Holmes is preparing to report to the Bureau of Prisons," Holmes court filing states. "These preparations include out-of-state travel to her Bureau of Prisons facility and medical & child-care arrangements in anticipation of beginning her 135-month sentence." Holmes’ prison sentence represents approximately 14% of the maximum allowable time of 80 years that sentencing guidelines technically permit for her four fraud convictions. Each of those charges allowed for a sentence of up to 20 years, along with $250,000 in fines, plus restitution.
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.
*Ramesh “Sunny” Balwani (53/now 57) (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.

 

[nyvictoria]

I'm of the opinion that she is so deeply delusional, a prison sentence will have no meaningful impact on her. I think she will emerge from her sentence largely unchanged in terms of her basic personality and viewpoints. Given what she did over all the years with Theranos, and then showing no sign of acknowledging any wrong-doing, her prison sentence will just be, in her mind, an annoyance to be endured, while her children wait for her to get out. And then she will be off to a life of sunshine and rainbows.

All we can hope is that she doesn't find a way to harm others once she's out. It will be decades from now when the impact of having such a person for a mother will be fully known to her children. The public will probably never know about that unless something very dramatic happens.

I agree with you but I don’t believe she is or was at all delusional. She knew exactly what was going on in her company. She made sure her board didn’t have anyone who knew the ins and outs of medicine and/or medical devices and tests. She was well aware of every issue her employees were running into but she deliberately chose to continue scamming. If anyone disagreed with her, they were gone.

She’s very likely going to come out of prison the same morally bankrupt person that she is today.

 

[arielilane]

https://www.npr.org/2023/05/30/1178728092/elizabeth-holmes-prison-sentence-theranos-fraud-silicon-valley

Disgraced Silicon Valley superstar Elizabeth Holmes is set to surrender on Tuesday to begin serving a 11-year prison term for defrauding investors with her once high-flying blood-testing company Theranos.

Holmes, a 39-year-old mother of two, is expected to report to the prison camp in Bryan, Texas, an all-female facility about 100 miles outside of Houston, where some family members of Holmes reside.

 

[RickshawFan]

Now I realize who Phyllis Gardner reminds me of: Judi Dench.

 

[RickshawFan]

No more "green juice" smoothies.

Inmates might have their own vegetable farm, and they can prolly buy blenders, brand Edison.

I’m not sure I can see EH pulling weeds to maintain her habit, but I’m sure there’s always “fake it ‘til you make it” with canned peas. Maybe she’ll even start a greenie shake business and try to pull one over on her fellow-inmates.

Watch “Jail Juice” be incorporated as the latest Silicon Valley unicorn the moment she gets out. She’d be such a smoothie CEO.

 

[Seattle1]

Sky News set up cameras on the street (entrance to Bryan) more than 4 hours ago -- live streaming. And now I hope EH reports elsewhere -- in CALIF!

ETA: Cameras just stormed the fence at Bryan. EH got out of vehicle and walked in the facility with two probation personnel. Looks like she traveled to Texas with her parents and Billy.

Arrives at lot gate at about 3 hour 15 min marker -- Grey Ford SUV. About 8 minutes later, walks away with staff to enter facility. Media totally missed her vehicle!

 

[Gardenista]

Sky News set up cameras on the street (entrance to Bryan) more than 4 hours ago -- live streaming. And now I hope EH reports elsewhere -- in CALIF!

I just checked that live and I think she just walked in to the prison

Scroll back a couple minutes here

 

[Herat]

I just checked that live and I think she just walked in to the prison

Scroll back a couple minutes here

A small black SUV or sedan drives to the entrance area at about 2 minutes and then departs past the cameras at about 2:38

And then a white passenger van arrives at ~ 2:08

 

[sds71]

https://twitter.com/x/status/1663608467364642816

 

[arielilane]

"I'm late, I'm late for a very important date."

Elizabeth Holmes reported for prison today in Bryan. She's beginning her sentence after being convicted on fraud and conspiracy charges. (Video from @KAGSnews, KHOU 11's sister station in College Station) https://khou.com/article/news/nation-world/elizabeth-holmes-report-to-texas-prison/507-4b2b0d5c-4f53-46c3-b18a-e5764fd75f63

https://twitter.com/x/status/1663617784092282884

https://twitter.com/KHOU

 

[RickshawFan]

She shoulda gotten bangs for her mug shot.

 

[Kittybunny]

https://twitter.com/x/status/1663608467364642816

I admit I was nervous as to whether she would show or not.

 

[Cool Cats]

Disgraced Theranos CEO Elizabeth Holmes, left, is escorted by prison officials into a federal women’s prison camp on Tuesday, May 30, 2023, in Bryan, Texas. (AP Photo/Michael Wyke)

Elizabeth Holmes enters Texas prison to begin 11-year sentence for notorious blood-testing hoax

Theranos founder Elizabeth Holmes entered Texas prison where she could spend the next 11 years for overseeing a blood-testing hoax that became a parable about greed and hubris in Silicon Valley.

www.ctvnews.ca

 

[LinasK]

View attachment 425500
Disgraced Theranos CEO Elizabeth Holmes, left, is escorted by prison officials into a federal women’s prison camp on Tuesday, May 30, 2023, in Bryan, Texas. (AP Photo/Michael Wyke)

Elizabeth Holmes enters Texas prison to begin 11-year sentence for notorious blood-testing hoax

Theranos founder Elizabeth Holmes entered Texas prison where she could spend the next 11 years for overseeing a blood-testing hoax that became a parable about greed and hubris in Silicon Valley.

www.ctvnews.ca

She looks happy to go to "Camp". Pretty cushy prison conditions from what that guy on the YouTube described. I'd consider it if I got pizza and got to do needlework and exercise on picnic grounds most of the day. And she gets to buy makeup from the commissary.

 

[Seattle1]

I wonder if she could have gotten a plea deal? Like 5 years instead of 11?

Be a huge difference.

I wonder if she had admitted her crimes and apologized and told the judge she would make restitution and pled guilty instead of having this huge trial, etc..., I wonder if she could have gotten some relief from her sentence?

The problem is that having all these letters sent to the judge supporting her couldn't have done much good when at the same time she insisted that she wasn't guilty. That it was all her partner's fault etc....

I personally would grovel and apologize and try to get mercy from the judge, anything to get a reduced sentence.

Going to trial gets you a longer sentence no matter how you slice it.

11 years, such a waste.

^^bbm

Given all EH's charges here were by the feds, I think this affected the strategy for both defendants Holmes and Balwani.

For example, we know that when both were first charged in 2018 by the SEC for security fraud, EH immediately settled w/o admitting wrongdoing and paid the fine-- while RSB appears to still be fighting the SEC's charge.

It was months after EH settled with SEC that the next round of federal indictments were announced. And when both were charged with wire fraud and conspiracy to commit wire fraud, the government sought to try EH/RSB together-- and fought hard against severing the cases.

The court ultimately approved severing the cases after EH's defense alerted she was going to accuse RSB and he was going to accuse EH.

IMO, the government needed these cases to go to trial more than the defendants, and where <Federal> plea deals* come from (initiated by) the prosecutor, not the defendant.

For EH, going to trial probably worked to her advantage given the max penalty for the charges by law was 20 years, and after the guilty verdict on 4/11 charges, the the prosecution sought EH sentenced to 15 years.

In other words, they would have never entertained a 5 year plea deal. JMO

ETA: *<Federal>

 

[LinasK]

^^bbm

Given all EH's charges here were by the feds, I think this affected the strategy for both defendants Holmes and Balwani.

For example, we know that when both were first charged in 2018 by the SEC for security fraud, EH immediately settled w/o admitting wrongdoing and paid the fine-- while RSB appears to still be fighting the SEC's charge.

It was months after EH settled with SEC that the next round of federal indictments were announced. And when both were charged with wire fraud and conspiracy to commit wire fraud, the government sought to try EH/RSB together-- and fought hard against severing the cases.

The court ultimately approved severing the cases after EH's defense alerted she was going to accuse RSB and he was going to accuse EH.

IMO, the government needed these cases to go to trial more than the defendants, and plea deals come from (initiated by) the prosecutor, not the defendant.

For EH, going to trial probably worked to her advantage given the max penalty for the charges by law was 20 years, and after the verdict of guilty on 4/11 charges, the the prosecution sought EH sentenced to 15 years.

In other words, they would have never entertained a 5 year plea deal. JMO

I disagree on one point- plea deals aren't always initiated by prosecutors. Sometimes defendants offer them when they know that they are screwed. The deals have to be approved by the prosecution though.