In a recent ruling, the Northern District Court of California denied appeals from Elizabeth Holmes and Ramesh "Sunny" Balwani, aiming to overturn their fraud convictions. The court also upheld their hefty $452 million joint restitution order. Holmes, the former CEO of Theranos, was sentenced to over 11 years in prison, while Balwani, the company's former president, received nearly 13 years. Both faced separate trials in 2022, where they were found guilty of defrauding investors by misrepresenting the capabilities of Theranos's blood-testing technology.
Holmes is currently serving her sentence at FPC Bryan, a minimum-security federal prison camp, while Balwani is at Terminal Island, another minimum-security federal facility. Their respective trials brought to light the extent of their deception, including the use of improper testimonies from former Theranos employees who served as lay witnesses. A government report detailing failures in Theranos's laboratory operations was also admitted as evidence during the trial, which Holmes argued unfairly influenced the jury's decision.
Balwani's appeal included claims that his charges were improperly expanded during the trial, a point the court panel dismissed. He further contended that his right to a fair trial was compromised when the government did not correct what he alleged was false testimony from two investors. On her part, Holmes argued that her rights were infringed upon when she was barred from cross-examining a former laboratory director at Theranos.
The court's decision to deny their appeals reaffirms the seriousness of the charges against them and the impact of their actions on investors and stakeholders. Despite their arguments, the court found no grounds to overturn their convictions or lessen their financial penalties.
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