Theranos CEO Sentencing In Fraud Case Postponed To September

The former CEO of Theranos, Elizabeth Holmes, who had earlier been convicted on four out of 11 federal fraud and conspiracy charges will not be sentenced until September 26 this year. This is following a new filing proposed before the court.

The prosecution and defence in the case had proposed September 12 as the day for sentencing as it would be okay keeping in mind ongoing proceedings in a related matter, with reference to the upcoming trial of Holmes' second-in-command at Theranos who faces the same charges as her.

In a court order signed Wednesday, Judge Edward Davila, who is presiding over Holmes' case, set her sentencing hearing for later in September. By that point, it will have been more than a full year since her trial kicked off. Until then, Holmes is a free person, on a $500,000 bond secured by property, according to the earlier filing details provided by the prosecution and defense. As per the ruling, Holmes faces up to 20 years in prison and also a fine of $250,000 plus restitution for each count. The judge will later decide on her sentencing as it is deemed appropriate.

Holmes, who started Theranos at the age of 19, claimed to have developed a revolutionary blood testing technology, which could accurately and affordably test for a range of conditions using just a few drops of blood. Holmes raised $945 million from investors with these claims, raising her start-up to a $9 billion valuation and making her a paper billionaire in the process. But her technology didn't work as she claimed, and it all came crashing down.

After 50 hours of jury deliberations spread out over the course of seven days, Holmes was found guilty of four charges, including one count of conspiracy to defraud investors and three wire fraud counts tied to specific investors. The jury acquitted Holmes of three counts of defrauding patients and one count of conspiracy to defraud patients.

There were three additional wire fraud counts tied to other investors that jurors could not reach a unanimous agreement on and for which Judge Davila declared a mistrial.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT