Elizabeth Holmes saga still has some loose ends to resolve

Jan 4, 2022, 3:19 PM | Updated: 3:33 pm

SAN JOSE, Calif. (AP) — A jury has ended the suspense surrounding the fraud trial of former Theranos CEO Elizabeth Holmes by finding her guilty on four of the 11 charges facing her, but some issues in the legal drama remain unresolved. Here’s a look at some of the most pressing questions.

PRISON BOUND

The general consensus is that Holmes almost certainly will be sent to prison, although it’s difficult to predict for how long. Technically, she could be sentenced to a maximum of 20 years in federal prison for each of the four felony convictions, but experts doubt that will happen.

Former federal prosecutor Neama Rahmani believes Holmes, 37, will be sentenced to at least 10 years in prison unless she can win an appeal to overturn the guilty verdicts. Holmes was convicted for duping Theranos investors and conspiring to commit fraud against them.

An appeal also seems certain, especially because the jury acquitted Holmes on four counts alleging she had also defrauded and conspired against patients who paid for Theranos blood tests that didn’t work as advertised.

“Mixed jury verdicts are definitely the kind of thing you want to bring to an appellate court,” said Matthew Barhoma, a Los Angeles attorney who specializes in appeals. “You want to use that mixed result to say the jury didn’t understand the information presented to them, and there’s an argument to be made that the evidence was insufficient for a conviction.”

Holmes declined to answer questions from reporters after she left court Monday following the verdicts.

U.S. District Judge Edward Davila, who presided over the complex trial in San Jose, California, indicated it will probably be several months before he sentences Holmes. Until then, she will remain free on bail, although she will now likely to have to offer some sort of property or cash as security to discourage from trying to flee.

The freedom will allow her to spend more time with her infant son, who was born shortly before the trial began in September.

Davila is also expected to declare a mistrial on three fraud charges that deadlocked the jury.

WHAT ABOUT SUNNY?

Initially, there was relatively little interest in Theranos’ longtime chief operating officer, Ramesh “Sunny” Balwani. Until, that is, Holmes heaped much of the blame for the company’s scandalous downfall on his alleged attempts to control her and his alleged mismanagement of the company’s blood-testing labs.

The trial also cast a bright light on the secret love affair that Holmes and Balwani, now 57, had been having for years, unknown to Theranos’ board of directors and almost everyone else in the company.

At one point in the seven days she spent on the witness stand, Holmes weepily testified that Balwani had subjected her to years of mental, emotional and sexual abuse and suggested it may have clouded her judgment at times. Balwani’s attorney adamantly denied Holmes’ accusations, but Balwani never told his side of the story during the trial.

He will get that chance in his own fraud trial scheduled to start next month.

Interest in Balwani’s trial will intensify if Holmes takes the stand to testify against him. But her attorneys almost certainly won’t allow that in order to protect her likely appeal of her conviction, said Richard Greenfield, a lawyer who represents investors in startups.

OTHER LEGAL ENTANGLEMENTS?

While it’s always possible there might be additional civil lawsuits filed against Holmes, there doesn’t seem to be much left for would-be litigants to pursue. Theranos is now worthless, and Holmes reached a civil settlement with the Securities and Exchange Commission even before she was indicted on criminal charges.

In addition to imposing a $500,000 fine on Holmes, the SEC settlement also required her to surrender controlling interest in Theranos. That stake was valued at $4.5 billion in 2014 before a series of revelations about Theranos’ flawed technology caused it all to collapse. Holmes also was barred from becoming an executive or board member of a publicly held company for 10 years,

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

This Wanted poster released Sunday, Aug 7, 2022, by the Albuquerque Police Department shows a vehic...
Associated Press

Albuquerque police seek car in killings of 4 Muslim men

ALBUQUERQUE, N.M. (AP) — Authorities investigating whether the killings of four Muslim men are connected said Sunday that they need help finding a vehicle believed to be connected to the deaths in New Mexico’s largest the city. Albuquerque police said they released photos of the vehicle suspected of being used in the four homicides, hoping […]
19 hours ago
Associated Press

Report: Dozens got sick after visiting Kansas splash park

GODDARD, Kan. (AP) — A new federal study said dozens of people got sick after visiting a splash park near Wichita, Kansas, last summer. The study by the federal Centers for Disease Control and Prevention said that 21 people contracted Shigella bacteria and six others became sick with the norovirus after visiting the splash park […]
19 hours ago
A sign marks the water line from 2002 near Lake Mead at the Lake Mead National Recreation Area, Sat...
Associated Press

More human remains discovered as drought dries Lake Mead

More human remains have been found at drought-stricken Lake Mead National Recreation Area east of Las Vegas, authorities said Sunday.
19 hours ago
Associated Press

North Carolina sheriff stocking schools with AR-15 rifles

MARSHALL, N.C. (AP) — When schools in one North Carolina county reopen later this month, new security measures will include stocking AR-15 rifles for school resource officers to use in the event of an active shooter. Spurred by the elementary school shooting in Uvalde, Texas, that left 19 children and two teachers dead in May, […]
19 hours ago
Republican Kentucky State Representative Savannah Maddox addresses the audience gathered during the...
Associated Press

Kentucky candidates struggle when describing 2020 election

FANCY FARM, Ky. (AP) — Kentucky Republicans came to the state’s premier political event this weekend intent on winning elections in November and beyond, but some candidates aspiring to become governor had a hard time coming to terms with Donald Trump’s defeat in 2020. They gave parsed or tortured responses when asked if Democrat Joe […]
19 hours ago
FILE - Miss America 2018 Cara Mund poses for photographers on the 86th Floor Observation Deck of th...
Associated Press

Former Miss America Cara Mund plans to run for Congress

BISMARCK, N.D. (AP) — Cara Mund, a former Miss America who gained attention by criticizing the organization near the end of her reign in 2018, plans to run for Congress in North Dakota as an independent. Mund announced her candidacy Saturday and said she would start gathering the 1,000 signatures she needs to get on […]
19 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
Elizabeth Holmes saga still has some loose ends to resolve