« US Sentencing Commission reports on "Federal Robbery: Prevalence, Trends, And Factors In Sentencing" | Main | Defense beginning mitigation case in the capital trial of Parkland shooter Nikolas Cruz »
August 21, 2022
Might any victims of Theranos fraud urge leniency at sentencing for Elizabeth Holmes?
The question in the title of this post is prompted by this Bloomberg article headlined "Elizabeth Holmes’s Victims Asked to Weigh in for Sentencing." Here are excerpts:
The US Justice Department is seeking input from victims of the frauds at blood-testing startup Theranos Inc. committed by Elizabeth Holmes and her second-in-command, Ramesh “Sunny” Balwani.
The US Attorney’s Office in San Francisco on Thursday issued a “call for information” from victims following the separate convictions of the former executives for their roles in the collapse of the company once valued at $9 billion. The federal judge in San Jose, California, who presided over the trials will use the information in determining their sentences, according to a statement from the office.
The universe of victims includes investors at all levels who poured more than $700 million into Theranos, some of whom hail from ultra-wealthy families and Silicon Valley venture capital firms, as well as thousands of patients who got inaccurate blood-test results from the startup’s clinics inside Walgreens stores....
Holmes was convicted in January of defrauding investors, while Balwani was found guilty in July on similar counts as well as defrauding patients. The trials for Holmes and Balwani were split because Holmes accused the ex-Theranos president, who was also her boyfriend, of sexually and verbally abusing her.... In their respective trials, the Theranos executives blamed each other for the fraud.
US District Judge Edward Davila will weigh the evidence presented at both trials, as well as the counts each was found guilty of, in determining their sentences. Criminal defense lawyers have said both Holmes and Balwani could face a decade in prison.... Both former executives remain free on bond and have asked Davila to set aside the jury verdicts. Holmes’s sentencing is scheduled for October; Balwani’s is set for November.
While prosecutors are busy gathering victim statements to make a case for lengthy periods of incarceration, the defendants are doing their own legwork in a bid for leniency, according to criminal defense attorney Seth Kretzer. “Two can play this game,” he said. “Both Balwani and Holmes will submit letters from their respective family and friends stating how horribly off they will all be with long prison terms.”
As this article explains, there are actually two sets of victims being asked for statements: "investor victims" and "patient victims." Here are links to the four-page statement for for each:
Victim Impact Statement For Investor Victims
Victim Impact Statement For Patient Victims
Notably, these forms do not include any questions that directly ask the victims to opine on the sentence that they would like to see the defendants receive. But both forms close with this fairly open-ended query: "Is there anything else you would like the sentencing Judge to know about your experience with Theranos, Inc.?"
Prior related posts:
- Elizabeth Holmes convicted on 4 of 11 fraud charges ... but now can be sentenced on all and more
- Making the case, because "upper-class offenders ... might be even more reprehensible," for a severe sentence for Elizabeth Holmes
August 21, 2022 at 06:13 PM | Permalink