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Theranos founder Elizabeth Holmes loses fraud appeal | Theranos founder Elizabeth Holmes loses fraud appeal |
(about 3 hours later) | |
Theranos founder and former chief executive Elizabeth Holmes has lost an appeal against her conviction for defrauding investors in her blood-testing company. | Theranos founder and former chief executive Elizabeth Holmes has lost an appeal against her conviction for defrauding investors in her blood-testing company. |
Holmes was sentenced to more than 11 years in prison. | Holmes was sentenced to more than 11 years in prison. |
In her appeal, she challenged trial evidence and testimony and argued that statements by her ex-business and romantic partner Ramesh "Sunny" Balwani about his level of responsibility for Theranos' financial model should have been included. He was jailed for more than 12 years. | In her appeal, she challenged trial evidence and testimony and argued that statements by her ex-business and romantic partner Ramesh "Sunny" Balwani about his level of responsibility for Theranos' financial model should have been included. He was jailed for more than 12 years. |
The Ninth Circuit Court of Appeals rejected the arguments. | The Ninth Circuit Court of Appeals rejected the arguments. |
Judge Jacqueline H Nguyen wrote that Theranos's claim of being able to run blood tests with a drop from a finger prick instead of a needle in a vein was "nothing more than a mirage". | Judge Jacqueline H Nguyen wrote that Theranos's claim of being able to run blood tests with a drop from a finger prick instead of a needle in a vein was "nothing more than a mirage". |
"The grandiose achievements touted by Holmes and Balwani were half-truths and outright lies," Nguyen wrote in the opinion on behalf of a three-judge panel published on Monday. | "The grandiose achievements touted by Holmes and Balwani were half-truths and outright lies," Nguyen wrote in the opinion on behalf of a three-judge panel published on Monday. |
Holmes was convicted in 2022 of conspiracy and multiple charges of wire fraud for misleading investors over the company's financial health and the effectiveness of its technology. | Holmes was convicted in 2022 of conspiracy and multiple charges of wire fraud for misleading investors over the company's financial health and the effectiveness of its technology. |
Balwani, who was tried separately and additionally convicted of defrauding patients in 2022, also lost his appeal. | Balwani, who was tried separately and additionally convicted of defrauding patients in 2022, also lost his appeal. |
In the appeal, both challenged a court order to pay $452m (£358m) in restitution to victims, which the court upheld. | In the appeal, both challenged a court order to pay $452m (£358m) in restitution to victims, which the court upheld. |
In Holmes's appeal, she argued that statements from Balwani where he said he "owned" the company's financial model should have been included in the trial. | In Holmes's appeal, she argued that statements from Balwani where he said he "owned" the company's financial model should have been included in the trial. |
The appeal also argued that former Theranos employees offered improper expert testimony and a government inspection report should not have been included as evidence - all arguments the court dismissed. | The appeal also argued that former Theranos employees offered improper expert testimony and a government inspection report should not have been included as evidence - all arguments the court dismissed. |
Silicon Valley start-up Theranos was once valued at $9bn (£7bn). | Silicon Valley start-up Theranos was once valued at $9bn (£7bn). |
But in late 2015, news reporting revealed internal struggles at the company and exposed the limitations of its technology. After a two-and-a-half-year investigation, a grand jury indicted Holmes and Balwani, leading to their convictions and sentencings. | But in late 2015, news reporting revealed internal struggles at the company and exposed the limitations of its technology. After a two-and-a-half-year investigation, a grand jury indicted Holmes and Balwani, leading to their convictions and sentencings. |
Holmes entered prison in Texas in 2023. | Holmes entered prison in Texas in 2023. |
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