Elizabeth Holmes, the founder of the fraudulent medical company Theranos, has been denied a new trial after she was found guilty of misleading investors, as her judge says it is unlikely to lead to an acquittal.
Holmes, who is pregnant with her second child, faces up to 20 years in prison and fines after she was found guilty of four counts of criminal fraud in January when she misled investors about the effectiveness of her blood-testing technology.
U.S. District Judge Edward Davila said Monday that Holmes’s three requests for a retrial did not provide enough new evidence or evidence of government misconduct, and her sentencing will continue on Nov. 18.
One of the main reasons Holmes requested a retrial was a visit to her home by the former director of the Theranos lab, Adam Rosendorff, who was a key witness in the government’s case against her.
According to Holmes, Rosendorff arrived at her home unannounced in August and admitted that his testimony against her had been distorted by prosecutors.
But Rosendorff has disputed this characterization of his visit to her home, saying he did not want to retract his testimony.
U.S. District Judge Edward Davila said Monday that Elizbeth Holmes’ three requests for a retrial did not provide sufficient new evidence or evidence of government misconduct. Pictured in a courthouse in San Jose, California, USA, October 17, 2022
Holmes, seen here with partner Billy Evans, is pregnant with her second child, but will still be sentenced on Nov. 18. The couple pictured on October 17
US District Judge Edward Davila said on Monday that even if he were to award a new trial for Holmes, it is unlikely it will end in an acquittal.
Court documents filed by Holmes’ legal team had previously claimed a troubled Rosendorff told Holmes: “He tried to answer questions honestly at Ms. Holmes’s trial, but the government was trying to make everyone look bad.” ‘
He said he regretted the possibility that Holmes’ 15-month-old child with partner Billy Evans would be without her mother if Holmes is sentenced to prison.
Judge Davila ordered a new hearing based on the incident, but Rosendorff said his testimony against Holmes was truthful.
“I don’t want to help Mrs. Holmes,” Rosendorff said. “The only one who can help her is herself. She has to pay her debt to society.’
In Monday’s decision not to grant a new trial, Davila said he had “Dr. Rosendorff’s statements under oath are credible.’
Davila added that Rosendorff’s “post-trial statements are too vague and general to imply that any specific testimony was actually false or misleading.”
Ramesh ‘Sunny’ Balwani, Holmes’ ex-boyfriend and deputy in Theranos, also saw his requests for acquittal and a new trial rejected.
Balwani was found guilty of 12 charges of conspiracy and fraud in a separate trial that ended in July.
His sentencing has been postponed to December 7, after it was originally scheduled for next week.
Mr Balwani cited the limited availability of his family to attend and one of his lawyers filed a statement from Mr Balwani’s urologist, although his personal medical records were redacted.
Holmes found herself in hot water after falsely claiming her blood tests could diagnose a host of health problems with a drop of blood. Holmes, center, arrives in federal court with her father, Christian Holmes IV, left, and partner, Billy Evans, in California on October 17, 2022
Adam Rosendorff, her former lab director and a key witness in the government’s case against her, reportedly said he felt sorry for Holmes’ child as her mother may be sentenced to prison.
Ramesh ‘Sunny’ Balwani, Holmes’ ex-boyfriend and deputy in Theranos, also saw his requests for a retrial rejected – he was found guilty on 12 counts of conspiracy and fraud
Theranos — which the businesswoman founded when she was a 19-year-old student at Stanford University — falsely claimed it was able to diagnose a multitude of health problems with a simple blood test.
Prosecutors also accuse her of lying to pharmacy chain Walgreens to set up a lucrative partnership that involved deploying Theranos’ technology at the retail giant’s nearly 10,000 drugstores across the country.
Officials further allege that Holmes deceived potential buyers by claiming her company’s testing device could detect hundreds of illnesses and other ailments with a few drops of blood drawn with a finger prick rather than a needle in a vein.
The concept was so compelling that Theranos and Holmes raised nearly $1 billion in investments, with media mogul Rupert Murdoch and software giant Larry Ellison representing just a few of the high-profile backers of the lofty project.
The Palo Alto-based company also negotiated potentially lucrative deals with major supermarket chain Safeway.
During this whirlwind of support, Holmes was soon seen as a visionary and child prodigy, graced magazine covers and saw her net worth of nearly $5 billion.
However, the blood testing technology Holmes had touted to investors as the future was unknown to most people outside the company, and was largely flawed, often producing inaccurate results that could have endangered the lives of patients taking the tests.
Elizabeth Holmes, the founder of Theranos, listens as the clerk reads to Judge Edward Davila that she was found guilty of four of the 11 counts in her fraud trial at Robert F. Peckham US Courthouse in San Jose, California, US, January 3, 2022
Theranos staffers soon began to become aware of the technology’s shortcomings, with many senior Theranos staffers reportedly being approached, including Balwani and former United States Secretary of State and then Theranos board member, George Shultz, to clarify the inconsistencies. signal – but were repeatedly rejected.
The dream came crashing down in 2015 when whistleblowers made public the alleged flaws of blood-testing technology, and a Wall Street Journal investigation revealed further holes in the startup’s testing methods and technological capabilities.
Theranos would then suffer a monumental collapse, forcing officials to figure out how to deal with the rapidly emerging allegations of fraud by the litany of the multibillion-dollar company’s powerful investors.
The Justice Department eventually filed its criminal case in 2018, bringing in several former Theranos employees to testify that Holmes repeatedly lied about the abilities of her creation, amounting to fraud.
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