Elizabeth Holmes Sentenced To More Than 11 Years In Prison

Disgraced Theranos founder Elizabeth Holmes has been sentenced to 135 months, or 11.25 years, in prison for her role in defrauding investors in her blood-testing company. She’ll have an additional three years of supervised release.

Holmes won’t have to report to prison until April of next year.

Holmes, 38, was sentenced Friday by US District Judge Edward Davila, who sits on the federal court in the Northern District of California and oversaw her trial last year. Davila said he’d set a date in the future for Holmes’ restitution hearing, according to reporters in the courtroom.

Holmes, who is pregnant for the second time, spoke in court on Friday while crying.

“I stand before you taking responsibility for Theranos. It was my life’s work,” she said, according to reporters in the courtroom.

“I am devastated by my failings,” she said, noting she’s “felt deep pain for what people went through because I failed them”. She went on to apologise to investors and patients, adding: “I regret my failings with every cell of my body.”

Her sentencing comes after a last-ditch attempt by Holmes and her legal team to secure a new trial, staking it to claims that a key witness for the prosecution regrets the role he played in her conviction. Davila denied the request earlier this month.

Jurors convicted Holmes on January 4 on one count of conspiring to commit wire fraud against Theranos investors and three counts of fraud in connection to wire transfers. Each count carried a maximum of 20 years in prison and could be served concurrently. Prosecutors asked Davila to sentence her to 15 years.

“She repeatedly chose lies, hype and the prospect of billions of dollars over patient safety and fair dealing with investors,” Assistant US Attorney Robert Leach wrote in a 46-page brief filed last week. “Elizabeth Holmes’ crimes were not failing, they were lying — lying in the most serious context, where everyone needed her to tell the truth.”

Elizabeth Holmes in 2015, when her medical testing company was valued at $9 billion.
Elizabeth Holmes in 2015, when her medical testing company was valued at $9 billion.

Taylor Hill via Getty Images

The jury reviewing Holmes’ case found her not guilty on four other counts — three of which related to defrauding patients — and failed to reach a verdict on three others after seven days of deliberations.

Jurors who’ve spoken out since the trial’s conclusion said they quickly agreed to the four guilty verdicts because it was clear to them that Holmes had willfully misled investors connected to those charges by giving false financial projections and altered reports to investors.

“Everything went through her. She had final approval,” juror Wayne Kaatz, an Emmy-winning TV writer, told ABC News of Holmes’ apparent culpability when it came to Theranos’ business dealings.

Juror Susanna Stefanek, an editorial manager at Apple, told The Wall Street Journal that there were two “smoking guns” in the trial: a report Theranos gave to investors that Holmes had altered to appear to be an endorsement from the pharmaceutical and biotech company Pfizer, and a document from the company projecting $40 million in annual revenue from drug companies, even though no such contracts were in place.

Jurors said they found her not guilty on counts related to defrauding patients because she was too many steps removed from them. As for the charges they couldn’t reach a verdict on, the jurors said they couldn’t agree on whether there was enough proof Holmes had lied to certain investors.

Elizabeth Holmes's request for a new trial was denied earlier this month.
Elizabeth Holmes’s request for a new trial was denied earlier this month.

Justin Sullivan via Getty Images

Holmes pleaded not guilty to all charges in 2018 after a federal grand jury elected to indict her for making fraudulent claims about the blood-testing machines she was developing. Investors say Holmes promised them that the devices could diagnose a wide range of conditions with just a few drops of blood, revolutionising the standard medical testing process that requires vials of blood and much more time.

Holmes launched Theranos in 2003, when she was just 19, after dropping out of Stanford University. Silicon Valley, media outlets and prominent figures quickly pegged her as “one to watch”, helping her attract numerous high-profile investors, including the Walton family, founders of Walmart; media magnate Rupert Murdoch; and former Education Secretary Betsy DeVos.

By 2015, her company was valued at a staggering $9 billion. But that same year, whistleblowers from within the company began informing reporters that Theranos’ machines were largely non-functional and that there was little evidence to show they ever would be. Investors and business partners began pulling out, and investigations began piling up.

In addition to the January 4 conviction, Holmes reached a settlement in 2018 with the U.S. Securities and Exchange Commission over additional fraud allegations and was thus barred from serving as a director or officer of any public company for a decade.

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Derek Chauvin Sentenced To More Than 20 Years In Prison For Murder Of George Floyd

A Minnesota judge sentenced former Minneapolis police officer Derek Chauvin on Friday to 22.5 years in prison for the May 2020 murder of George Floyd.

He is also banned from possessing firearms, ammunition or explosives for the remainder of his life.

“Part of the mission of the Minneapolis Police Department is to give citizens ‘voice and respect,’” wrote Judge Peter Cahill in a 22-page brief laying out his rationale for the sentence. “Here, Mr Chauvin, rather than pursuing the MPD mission, treated Mr Floyd without respect and denied him the dignity owed to all human beings and which he certainly would have extended to a friend or neighbour.”

Cahill included an analysis of sentences in similar circumstances over the past decade to show that Chauvin’s sentence was not disproportionately long.

Chauvin was convicted in April of second- and third-degree murder as well as second-degree manslaughter in Floyd’s death. He has since been held at the Minnesota Correctional Facility in Oak Park Heights, the state’s only maximum-security prison, about 25 miles east of Minneapolis. 

Shortly before his sentence was handed down, the former officer stood up to address the court for the first time. 

“I want to give my condolences to the Floyd family,” Chauvin said, adding that he was not able to “give a full, formal statement” because of “some additional legal matters at hand.” He ended on a cryptic note.

“There’s going to be some other information in the future that would be of interest, and I hope things will give you some peace of mind,” Chauvin told the Floyd family.

Chauvin, who is white, was one of three officers to pin Floyd, a Black man, facedown on a street during an arrest attempt. Chauvin knelt on Floyd’s neck for 9 minutes and 29 seconds as Floyd repeatedly stated that he couldn’t breathe and eventually ceased breathing.

Four members of Floyd’s family spoke in court before the sentencing, including his young daughter, Gianna, who recalled how her father would help her brush her teeth every night before bed.

“I miss you and I love you,” Gianna said, addressing her father, in a video shown to the court.

Two of Floyd’s brothers, Terrence and Philonise Floyd, along with a nephew, Brandon Williams, asked Judge Peter Cahill to impose the maximum sentence on Chauvin.

Terrence Floyd said his family was now part of a group of Black people whose loved ones were killed by police in America, adding, “It’s not one of those fraternities that you enjoy.” He then told the judge how desperately he wanted answers from Chauvin: “What were you thinking? What was going through your head when you had your knee on my brother’s neck?”

Following Chauvin’s sentencing, the Floyd family and its legal team called the punishment “historic,” saying in a statement that it “brings the Floyd family and our nation one step closer to healing by delivering closure and accountability. For once, a police officer who wrongly took the life of a Black man was held to account. While this shouldn’t be exceptional, tragically it is.”

On Friday, the court heard for the first time from Chauvin’s mother, Carolyn Pawlenty, who read a statement that touched on her son’s childhood dream of becoming a police officer as well as how he has been portrayed in the media.

“The public will never know the loving and caring man he is, but his family does,” Pawlenty said. “Even though I have never spoken publicly, I have always supported him 100% and I always will.”

Floyd’s death sparked massive, monthslong protests across the country and an international reckoning with police brutality and racial injustice.

Hours before Friday’s sentencing, Judge Peter Cahill denied a defence motion for a new trial. He also ruled that Chauvin’s team failed to demonstrate prosecutorial or juror misconduct.

Prosecutors filed a memorandum earlier this month asking Cahill to sentence Chauvin to a minimum of 30 years behind bars. Chauvin’s legal team requested he receive probation or a shorter prison term. He will receive credit for time already served: 199 days. 

Cahill, who oversaw Chauvin’s high-profile trial, ruled last month that the former officer could receive an aggravated prison sentence ― one that would be tougher than Minnesota’s sentencing guidelines. The judge said Chauvin abused his position of authority and treated Floyd with particular cruelty. 

He reiterated this view in his brief, where Cahill said Chauvin’s actions “killed Mr. Floyd ‘slowly,’ and that the prolonged nature of the asphyxiation was by itself particularly cruel,” completely dismissing the defense’s argument that Chauvin had been forced to make decisions in a short time span.

“Determining the appropriate length of any felony sentence is not a mathematical calculation. Nor should it be a reflexive doubling of the presumptive sentence once aggravating factors are proven and found by the Court to be substantial and compelling. Each sentence should be an application of the law to the facts of the individual case without regard to sympathy, bias, passion, or public opinion,” Cahill wrote.

Chauvin’s legal troubles are far from over. In early June, he was ordered into federal custody pending federal charges over Floyd’s death.

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