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Theranos founder Elizabeth Holmes loses appeal to remain free, is hit with huge restitution bill

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Disgraced Theranos CEO Elizabeth Holmes was ruled free by an appeals court on Tuesday as she sought to overturn a blood test hoax conviction that brought her brief fame and fortune. He has dismissed the allegations of continued existence and is likely to be sent to prison soon.

In a separate ruling issued late Tuesday, Federal District Judge Edward Davila ordered Holmes to pay $452 million in compensation to crime victims. Holmes was convicted of broader felonies in a separate trial and was jointly liable for that amount with his former lover and top Theranos lieutenant Ramesh (Sunny) Balwani, who is already in prison. It is said that

The Ninth Circuit’s ruling in Holmes’ escape attempt came nearly three weeks after she launched last-minute legal maneuvers to delay the start of her 11-year prison sentence. She had previously been ordered to be handed over to authorities on April 27 by Davila, who handed down her sentence in November.

Davila will now set a new date for Holmes, 39, to move out of his current San Diego-area home and appear in jail.

The punishment will separate Holmes from his current partner, William Evans, one-year-old son William, and three-month-old daughter Invicta. Ms. Holmes and Invicta’s pregnancy began after a jury found her guilty of four counts of fraud and conspiracy in January 2022.

Davila encouraged Holmes to serve time at a women’s prison in Bryan, Texas. It is unclear whether the Federal Prison Service accepted Davila’s recommendation or assigned Holmes to another facility.

Ex-partner goes to prison in April

Barwani, who followed Holmes in trial, was convicted of 12 counts of fraud and conspiracy in July last year and sentenced to about 13 years in prison starting in April. The 57-year-old was incarcerated in a Southern California prison last month after losing a similar effort to keep his bail while pleading guilty.

The verdict against Holmes is based on 46 days of trial testimony and other evidence that shine a spotlight on the culture of greed and arrogance that has pervaded Silicon Valley over the past two decades as technology’s social and economic impact becomes more pervasive. It was passed through

Holmes’ former domestic and business partner Ramesh (Sunny) Balwani is seen appearing in court on December 7, 2022. (Jeff Chiu/Associated Press)

The most fascinating moment of the trial unfolded when Holmes took the stand in his defense. Holmes told how he founded Theranos as a teenager after dropping out of Stanford University in 2003, and he accused Balwani of emotional and sexual abuse.

She also said she believed Theranos would revolutionize medicine with technology that promised to scan hundreds of diseases and other potential problems with just a few drops of blood.

Rupert Murdoch owes $125 million, court rule

While pursuing its bold ambitions, Holmes has raised nearly $1 billion from a wealthy list of investors, including Oracle co-founder Larry Ellison and media mogul Rupert Murdoch. A Wall Street Journal investigation and regulatory review revealed dangerous flaws in Theranos’ technology, and all those sophisticated investors lost their money.

In his judgment, Davila determined that Holmes and Barwani should pay Murdoch $125 million, by far among the investors named in his order. Maximum amount. At her trial, the court heard that Holmes had personally lobbied Murdoch to publish the “Bad Blood” series, but it was unsuccessful and was eventually published in a journal owned by Murdoch. rice field.

The lawsuit also seeks to pay Walgreens $40 million to the Theranos fraud co-conspirators. Walgreens became an investor in the startup in 2013 after agreeing to provide some of the faulty blood tests at pharmacies. Another $14.5 million was paid to Safeway. The company also agreed to become a business partner of Theranos before exiting.

At separate hearings, lawyers for Holmes and Balwani tried to persuade Davila that each client’s payment, if any, should be small. Prosecutors were seeking $800 million in damages.

Balwani and Holmes, whose Theranos shares were once valued at $4.5 billion, have spent millions of dollars in legal fees while claiming innocence, suggesting they are on the brink of bankruptcy.

Holmes’ lawyers are fighting for a guilty verdict because of alleged misconduct and misconduct during the trial. They also argue that the jury’s biased errors and mistreatment were so egregious that she should be allowed to remain out of prison while the appeals process unfolds, but this request now goes to Davila. Denied by both Mr. and the Ninth Circuit Court of Appeals.

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