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US Says Elizabeth Holmes Should Get 15 Years For Fraud

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US Says Elizabeth Holmes Should Get 15 Years For Fraud

(CTN News) – Theranos Inc.’s former CEO Elizabeth Holmes should be sentenced to 15 years in prison for committing one of the most serious white-collar crimes in Silicon Valley history, prosecutors have told a judge.

On Friday, Attorney’s Office in San Francisco prosecutors injected a brand-new element into the closely watched case: a recommendation that Holmes, 38, be ordered to pay full restitution to her investors, including Walgreens Boots Alliance Inc. and Safeway Inc. – an amount of more than $8 million.

A court filing states that Elizabeth  Holmes was “blinded by ambition” when he duped novices and sophisticated investors alike. The founder of the blood-testing startup that reached a peak valuation of $9 billion before collapsing in ruins in 2018 operated in a “reality distortion field,” where the pursuit of fame, adoration and billions of dollars in wealth justified forgery and deception that put patient safety at risk.

“Holmes often exploited investors’ desire for a better world in order to lead them to believe her lies,” prosecutors asserted. The defendant stands before the court remorseless. As far as she is concerned, she accepts no responsibility. Elizabeth Quite the contrary, she claims to be the victim.”

According to the government’s sentencing memo, the case will go to trial Nov. 18 in federal court in San Jose, California, before United States Bankruptcy Judge Edward Davila.

According to Holmes’ own attorneys, she should be spared from prison and sentenced to home confinement and community service in order to continue her work counseling sexual-assault victims.

In the case that Davila finds that incarceration is necessary, her lawyers argue that a sentence of 18 months of supervised release would be sufficient.

The government’s memo reiterates many of the most sensational revelations made during Holmes’ trial, including her admission that she used pharmaceutical giant logos without permission in investor reports. Also, they pointed to instances in which she falsely boasted that Theranos devices were being used in combat by the United States military.

The memo is peppered with statements from investors and patients. Investor Craig Hall stated that Holmes’s lies regarding Theranos’ contracts with the Department of Defense were intended to exploit investors’ reverence for our servicemen and servicewomen. Holmes’ actions are simply loathsome and un-American.”

Prosecutors contend that Holmes’ scheme to defraud patients should also weigh against her, even though she was acquitted. Citing a recommendation from the U.S. Probation Office, the government stated that Holmes should serve more prison time as a result of her leadership of “extensive criminal activity involving her company.”

An investor list was provided by prosecutors, with a particular focus on Walgreens, Safeway and George Shultz, the former Secretary of State whose grandson worked at Theranos. Shultz was a whistleblower. According to prosecutors, Shultz’s family submitted a victim impact statement. The filing states that Holmes must compensate investors who lost $803,840,309 in total.

Holmes has “modest assets” outweighed by $450,000 in loans from securities regulators and more than $30 million in legal fees, prosecutors stated. According to the U.S. Probation Office, Holmes’s family has substantial assets, and she is managing her affairs to avoid having the assets subject to any judgment in this case.

Is Elizabeth Holmes a genius?

At the age of 31, Elizabeth has joined the list of Warren Buffett, Steve Jobs, Mark Zuckerberg and others. Elizabeth is the world’s youngest self-made female billionaire. A genius from childhood, Elizabeth learnt Mandarin language during her high schooling.

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Eli Lilly Dives After Fake Twitter Account Promises Free Insulin; Novo Nordisk, Sanofi Follow

Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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