Theranos’ Founder Elizabeth Holmes Faces Judgment Day
While everyone is fixated on the disgraced founder of FTX, Sam Bankman-Fried, and his collapsed cryptocurrency exchange, another Silicon Valley fraudster, Theranos CEO Elizabeth Holmes, will be sentenced in a federal courthouse Friday, putting an end to the years-long saga of her phony blood-testing startup.
Holmes’ sentencing will take place in a San Jose, California, courtroom where she was convicted earlier this year of three felony counts of wire fraud and one count of conspiracy to commit wire fraud for scamming investors.
Federal prosecutors wrote in court papers ahead of the sentencing hearing that Holmes’ crimes are “among the most substantial white-collar offenses Silicon Valley, or any other district, has seen” (wait until SBF’s court case…).
AP noted US District Judge Edward Davila could sentence Holmes to federal prison for 15 years, slightly less than the federal government’s recommendation of 20 years, though her lawyers filed a request to the judge last week for leniency in the sentencing and requested 18 months of home confinement instead of prison.
The request was accompanied by letters calling for leniency from over 130 friends, family, and even Theranos investors, as well as former company employees who described Holmes as a ‘good person.’
One of those letters was penned by Sen. Cory Booker (D., NJ), who said Holmes “has within her a sincere desire to help others” by fighting climate change and world hunger.
“I knew Ms. Holmes for about six years before charges were brought,” he continued.
… and how convenient:
“Holmes, who is 38 years old, was visibly pregnant with her second child at her last court appearance. If Davila hands down a prison sentence, her pregnancy could influence when her confinement starts,” NPR pointed out.
Judge Davila has handled her case since the collapse of Theranos after reaching a valuation of $9 billion. Criminal defense lawyers recently told Bloomberg Holmes’ sentencing could send a warning shot to Silicon Valley companies that run on hopes and dreams.
Fri, 11/18/2022 – 10:40