Elizabeth Holmes Sentencing Proposed for September
Theranos founder Elizabeth Holmes, center, and her family leave the Robert F. Peckham Federal Building and United States Courthouse after a grand jury found her guilty on four counts in San Jose, California, on Monday, January 3, 2022.
Dai Sugano | MediaNews Group | beautiful pictures
Former Theranos CEO Elizabeth Holmes, who was convicted of federal fraud last week, will be placed on a $500,000 property-secured bond and sentenced on September 12 on the terms proposed in a trial Tuesday night.
Court records also say the government will dismiss counts 3, 4 and 5 of the indictment that the jury reached an impasse.
The three reduced numbers involved investors Alan Eisenman, Chris Lucas from Black Diamond Ventures and Bryan Tolbert from Hall Group. All three investors testified that Holmes misled them about her blood testing company.
Theranos has raised more than $945 million from investors during its lifetime.
The proposed regulation, submitted to Holmes by the government and lawyers, says “the parties agree that a sentencing hearing after Labor Day 2022 would be appropriate in light of the ongoing proceedings in a matter involve.”
That referred to pending fraud charges against former Theranos president and Holmes’s Ramesh “Sunny” Balwani, the top executive and her boyfriend at the time.
The court filing also sets a timeline for both parties to file motions after the trial. U.S. District Court Judge Edward Davila will need to approve the joint motion.
After more than 50 hours of deliberation, Holmes was found guilty of three counts of telephone fraud and one count of conspiracy to commit electronic fraud involving lying to investors. The jury of eight men and four women found her not guilty of four counts of lying to a patient. The jury was unable to reach a unanimous verdict on the three counts involving the investors.
Balwani, who pleaded not guilty, is facing similar charges in a separate trial that was delayed to March due to the rise of Covid.