News

Judge hears Elizabeth Holmes' request to remain free while appeal resolved

Ruling expected in early April

Elizabeth Holmes, former CEO of Theranos, arrives at the federal courthouse in San Jose on Oct. 1, 2021. Courtesy Harika Maddala/Bay City News.

At a court hearing on Friday morning, lawyers for convicted Theranos founder and CEO Elizabeth Holmes argued that her upcoming prison term should be delayed until a higher court has reviewed the case.

In early 2022, a jury convicted Holmes of four counts of wire fraud and conspiracy based on her false statements about the accuracy and reliability of Theranos' much-touted fingerstick blood-testing technology.

After the trial, Judge Edward Davila of the Northern District of California sentenced Holmes to over 11 years in federal prison. Davila ordered Holmes to surrender to federal custody on April 27, 2023.

In a motion filed after the sentence was handed down, Holmes' lawyers asked that she be allowed to remain free until the Ninth Circuit Court of Appeals reviews her conviction.

Defense lawyer Amy Saharia argued on Friday that Holmes is not a flight risk, pointing out that Holmes has recently given birth to her second child and has "another incentive not to flee."

Help sustain the local news you depend on.

Your contribution matters. Become a member today.

Join

Saharia also argued that the trial record is "teeming with issues" that will likely "catch the Ninth Circuit's attention."

Among other things, the defense will appeal Davila's admission of evidence that the Centers for Medicare and Medicaid Services issued sanctions after it investigated the Theranos lab, and that a new lab director ordered that every test run on patients on Theranos machines be voided, on the ground that these events post-dated the Theranos fraud.

Assistant U.S. Attorney Kelly Volkar argued that Holmes has the "means and the motive to flee" now that her surrender date is coming up.

Volkar also argued that even if the Ninth Circuit finds errors in the trial, the appellate court will not reverse the verdict because of the strong evidence of misrepresentations made by Holmes to investors, separate and apart from the challenged rulings.

Judge Davila took the bail question under submission, saying that he did not expect to rule until early April.

Stay informed

Get the latest local news and information sent straight to your inbox.

Stay informed

Get the latest local news and information sent straight to your inbox.

Davila recently denied a similar motion for bail pending appeal by Holmes' business partner and former lover, Ramesh "Sunny" Balwani.

The denial meant that Balwani was scheduled to report to prison authorities on March 16. However, Balwani filed a last-minute motion in the Ninth Circuit, asking the court to intervene and allow him to remain free while the appeal is pending. Under Ninth Circuit rules, the motion automatically stayed Balwani's surrender date until the bail issue is decided.

If Judge Davila denies Holmes' motion for bail pending appeal, she too will have the option to seek relief from the Ninth Circuit and receive at least a temporary stay of her April 27 reporting date.

Follow Mountain View Voice Online on Twitter @mvvoice, Facebook and on Instagram @mvvoice for breaking news, local events, photos, videos and more.

Stay informed on important crime news. Sign up for our FREE daily Express newsletter.

Judge hears Elizabeth Holmes' request to remain free while appeal resolved

Ruling expected in early April

by Susan Nash / Bay City News Service

Uploaded: Fri, Mar 17, 2023, 5:52 pm

At a court hearing on Friday morning, lawyers for convicted Theranos founder and CEO Elizabeth Holmes argued that her upcoming prison term should be delayed until a higher court has reviewed the case.

In early 2022, a jury convicted Holmes of four counts of wire fraud and conspiracy based on her false statements about the accuracy and reliability of Theranos' much-touted fingerstick blood-testing technology.

After the trial, Judge Edward Davila of the Northern District of California sentenced Holmes to over 11 years in federal prison. Davila ordered Holmes to surrender to federal custody on April 27, 2023.

In a motion filed after the sentence was handed down, Holmes' lawyers asked that she be allowed to remain free until the Ninth Circuit Court of Appeals reviews her conviction.

Defense lawyer Amy Saharia argued on Friday that Holmes is not a flight risk, pointing out that Holmes has recently given birth to her second child and has "another incentive not to flee."

Saharia also argued that the trial record is "teeming with issues" that will likely "catch the Ninth Circuit's attention."

Among other things, the defense will appeal Davila's admission of evidence that the Centers for Medicare and Medicaid Services issued sanctions after it investigated the Theranos lab, and that a new lab director ordered that every test run on patients on Theranos machines be voided, on the ground that these events post-dated the Theranos fraud.

Assistant U.S. Attorney Kelly Volkar argued that Holmes has the "means and the motive to flee" now that her surrender date is coming up.

Volkar also argued that even if the Ninth Circuit finds errors in the trial, the appellate court will not reverse the verdict because of the strong evidence of misrepresentations made by Holmes to investors, separate and apart from the challenged rulings.

Judge Davila took the bail question under submission, saying that he did not expect to rule until early April.

Davila recently denied a similar motion for bail pending appeal by Holmes' business partner and former lover, Ramesh "Sunny" Balwani.

The denial meant that Balwani was scheduled to report to prison authorities on March 16. However, Balwani filed a last-minute motion in the Ninth Circuit, asking the court to intervene and allow him to remain free while the appeal is pending. Under Ninth Circuit rules, the motion automatically stayed Balwani's surrender date until the bail issue is decided.

If Judge Davila denies Holmes' motion for bail pending appeal, she too will have the option to seek relief from the Ninth Circuit and receive at least a temporary stay of her April 27 reporting date.

Comments

Dave Smith
Registered user
Old Mountain View
on Mar 19, 2023 at 11:51 pm
Dave Smith, Old Mountain View
Registered user
on Mar 19, 2023 at 11:51 pm

White folks need to serve time too! This is a sad case of gaming the system. At this rate she will never serve time and most white folks will be happy.. But a black man stealing.. well that deserves major timeā€¦


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Post a comment

In order to encourage respectful and thoughtful discussion, commenting on stories is available to those who are registered users. If you are already a registered user and the commenting form is not below, you need to log in. If you are not registered, you can do so here.

Please make sure your comments are truthful, on-topic and do not disrespect another poster. Don't be snarky or belittling. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

See our announcement about requiring registration for commenting.