Elizabeth Holmes, the founder of Theranos, America’s privately held corporation, has been sentenced on three counts on charges bothering on investor fraud and one count of conspiracy.
The California judge who sentenced Theranos founder Elizabeth Holmes to 11 years and three months in prison for defrauding investors in a defunct blood-testing startup confirmed the scandal valued around $9bn, Investors King reports.
United States District Judge Edward Davila in San Jose, California, sentenced Holmes on three counts of investor fraud and one count of conspiracy. A jury convicted Holmes, 38, in January following a trial that spanned three months.
The judge set Holmes’s surrender date for April. Her lawyers are expected to ask the judge to allow her to remain free on bail during her appeal.
Assistant US Attorney Jeff Schenk told the judge before he handed down the sentence that a 15-year sentence would be “making a statement that the ends don’t justify the means”.
However, Holmes’s lawyer Kevin Downey pleaded leniency for Holmes at the hearing, attempting to convince that unlike someone who committed a “great crime,” she was not motivated by greed.
Holmes had asked in court papers for a more lenient sentence of 18 months of home confinement, followed by community service, urging the judge not to make her a “martyr to public passion.”
Prosecutors said at trial that Holmes misrepresented Theranos’s technology and finances, including by claiming that its miniaturised blood testing machine was able to run an array of tests from a few drops of blood. The company secretly relied on conventional machines from other companies to run patients’ tests, prosecutors said.
Ahead of her sentencing, prosecutors had said a 15-year sentence was necessary to deter Holmes and others from fraud. Although, divergent opinions emerged thereafter.
Her crimes according to the authority “damaged the trust and integrity” on which Silicon Valley’s startup economy relies.
Federal probation office had recommended a nine-year prison sentence, according to court papers, only for Davila to adjudicate 11 years.