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
Registered user
College Terrace
on Mar 18, 2023 at 10:09 am
Registered user
on Mar 18, 2023 at 10:09 am
The legal wrangling by Holmes, Balwani, and Bankman-Fried goes on and on and on. The bills must be staggering.
Registered user
Embarcadero Oaks/Leland
on Mar 18, 2023 at 10:32 am
Registered user
on Mar 18, 2023 at 10:32 am
@Annette, golly gee. How can Holmes' legal bills be so staggering when she swears she has absolutely no assets?? How special of her pr firm to work pro bono.
Registered user
Embarcadero Oaks/Leland
on Mar 20, 2023 at 10:53 am
Registered user
on Mar 20, 2023 at 10:53 am
This article -- which is showing up as new today -- is 3 days old and neglects to mention the NEW discovery of 2 large unpaid debts to her own company.
Registered user
University South
on Mar 20, 2023 at 1:42 pm
Registered user
on Mar 20, 2023 at 1:42 pm
The mockery and the nerve shows clearly that these people still have know remorse for what they have done. Total disgrace. Caught buying a one way ticket to Mexico hours after her verdict. Courts still did not remand her. Still was able to be free on bail. Pathetic .
Registered user
Duveneck/St. Francis
on Mar 20, 2023 at 4:54 pm
Registered user
on Mar 20, 2023 at 4:54 pm
I think we should all be equal under the law and if he’s due to go to prison, he should; and if she is due to go to prison, she should…I get filing appeals and legal wrangling to try to delay… but come on judicial system, move faster.