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Theranos Founder Elizabeth Holmes Sentenced to Over 11 Years in Jail



Theranos Founder Elizabeth Holmes Sentenced to Over 11 Years in Jail

(CTN News) – Elizabeth Holmes, the founder of Theranos, was given 11 years and three months jail term on Friday by a federal court for cheating investors in her now-defunct blood-testing firm, which had a $9 billion valuation at one point.

After a jury found Elizabeth Holmes, 38, guilty of three counts of investment fraud and one count of conspiracy last January after a three-month trial, U.S. District Judge Edward Davila sentenced her in San Jose, California.

The defence wanted the court to impose no prison term, while the prosecution had asked for a sentence of 15 years in jail. When the verdict was announced, Elizabeth Holmes, wearing a dark top and a black skirt, embraced her boyfriend and parents.

Elizabeth Holmes sobbed as she claimed she was “devastated” by her mistakes and would have made many other decisions if she had the opportunity during the sentencing hearing.

As a result of my failures, Elizabeth Holmes said I had experienced great humiliation.

Davila questioned what drove Elizabeth Holmes, a “talented” entrepreneur, to misrepresent her firm to investors and termed the case “troubling on so many levels” before imposing the punishment.

The court said, “This is a case of fraud where an ambitious business proceeded with enormous hopes only to be destroyed by untruths, misrepresentations, simple arrogance, and falsehoods.

Davila scheduled Elizabeth Holmes’s surrender for April. Her attorneys are anticipated to persuade the court to grant her request to stay free on bail during her anticipated appeal.

They intend to challenge the judge’s rulings upholding Holmes’ conviction and imprisonment at the 9th U.S. Circuit Court of Appeals in San Francisco.

Davila was informed at the hearing by Assistant U.S. Attorney Jeff Schenk that a 15-year sentence would “make a message that the objectives don’t justify the methods.”

Kevin Downey, Holmes’ attorney, requested home confinement and argued that she should get away with it since, unlike someone who committed a “big crime,” Holmes was not driven by money.

According to court documents, the federal probation agency had suggested a 9-year jail term.

The term for Holmes, according to U.S. Attorney Stephanie Hinds, “reflects the boldness of her huge deception and the catastrophic harm she did.” As he exited the court, Downey chose not to speak.

Holmes allegedly misrepresented Theranos’ technology and finances throughout the trial, including by asserting that their miniature blood testing device could perform various tests using only a few drops of blood, according to the prosecution.

Prosecutors said that the business used covertly purchased standard equipment from other businesses to do patients’ tests.

In her testimony in her own defence, Elizabeth Holmes said that she had thought her claims to be true at the time.

She was found guilty on four charges but exonerated on four others that accused her of defrauding Theranos test-paying customers.

By replacing conventional laboratories with portable devices intended for use in homes, pharmacies, and even on the battlefield, Theranos Inc. claimed to change how patients obtain diagnoses.

In 2014, when Elizabeth Holmes was 30, and her share in Theranos was valued at $4.5 billion, Forbes branded her the world’s youngest female self-made billionaire. After many Wall Street Journal stories questioned Theranos’ technology in 2015, the company shut down.

In September, actress Amanda Seyfried received an Emmy Award for her performance as Elizabeth Holmes in the television movie “The Dropout.”

Davila inquired before imposing a sentence on her if any of Elizabeth Holmes’ victims were there.

Alex Shultz, whose father, former U.S. Secretary of State George Shultz, invested in Theranos and whose son Tyler Shultz worked there, described to the court how a family member had overheard Elizabeth Holmes discussing her allegedly ground-breaking technology.

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