This browser does not support the Video element.
Sentencing awaits Theranos founder Elizabeth Holmes
Sentencing awaits Theranos founder Elizabeth Holmes, whom a jury found guilty of three counts of wire fraud. Evan Sernoffsky reports
The sentencing of Elizabeth Holmes on four counts of criminal wire fraud will be delayed until Sept. 26 based on a stipulation between the prosecution and the defense and an order signed by U.S. District Judge Edward Davila on Wednesday.
Holmes, founder and former CEO of Theranos, was convicted by a jury earlier this month of three counts of defrauding investors about the company's blood-testing technology and one count of conspiracy to commit wire fraud against investors.
Holmes faces up to 20 years in prison and a $250,000 fine on each count, although under federal sentencing guidelines any prison terms would likely run concurrently, not consecutively.
The trial of Holmes's business partner, former lover and alleged co-conspirator, Ramesh "Sunny" Balwani, was recently delayed out of concerns over the COVID-19 surge in California. The prosecution and defense in that case have asked for jury selection to start on March 9, 2022.
This browser does not support the Video element.
Elizabeth Holmes silent while leaving courthouse after guilty verdict
In a case that exposed Silicon Valley’s culture of hubris and hype, Elizabeth Holmes was convicted Monday of duping investors into believing her startup Theranos had developed a revolutionary medical device that could detect a multitude of diseases and conditions from a few drops of blood.
The stipulation filed in the Holmes case cited "ongoing proceedings in a related matter," meaning the Balwani trial, as a basis for putting off her sentencing until after Labor Day.
The jury acquitted Holmes three counts of wire fraud against patients, as well as a patient-related conspiracy wire fraud count.
The jury was unable to reach a verdict on three remaining counts of wire fraud against investors. The stipulation states that the government intends to dismiss those counts by the end of the week.
Holmes will remain free on a $500,000 bond pending sentencing, although the parties agreed in the stipulation to modify her bail conditions to secure the bond by property.
Judge Davila also gave Holmes's defense team until March 4 to file typical post-trial motions for a new trial and other relief. Those motions are scheduled to be heard on June 16.