Federal Court Upholds Elizabeth Holmes' Fraud Conviction in Theranos Scandal
Elizabeth Holmes loses appeal to overturn her fraud conviction, upholding her 11-year sentence for deceiving investors about Theranos' blood-testing technology.
Elizabeth Holmes fails to overturn her Theranos fraud conviction
Associated Press
Overview
The Ninth Circuit Court of Appeals has upheld Elizabeth Holmes' fraud conviction for misleading investors about her blood-testing startup, Theranos. The court also affirmed the conviction of Ramesh 'Sunny' Balwani, with both defendants ordered to repay $452 million in restitution. Holmes, serving an 11-year sentence, argued that legal errors occurred during her trial, but the court found these claims unsubstantiated. The ruling leaves options for further appeal, possibly to the U.S. Supreme Court. Holmes' case remains a significant example of fraud in Silicon Valley, with widespread media coverage following the company's downfall.
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Axios·4M·FAQ
Elizabeth Holmes was convicted of one count of conspiracy to commit fraud on investors and three counts of committing fraud on individual investors, involving wire transfers totaling more than $140 million.
Elizabeth Holmes can file a new appeal to all judges on the Ninth Circuit Court of Appeals or even petition the U.S. Supreme Court.
Elizabeth Holmes and Ramesh 'Sunny' Balwani are jointly required to pay $452 million in restitution.
The appeals court found that any alleged errors during the trials were harmless and did not violate the defendants' constitutional rights. The court also noted that Theranos employees had raised concerns about the reliability of the company's testing technology, which were dismissed by Holmes and Balwani.
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