Home Economy Fallen tech star Elizabeth Holmes sentenced to 11 years in prison

Fallen tech star Elizabeth Holmes sentenced to 11 years in prison

by admin

Former Silicon Valley star Elizabeth Holmes was sentenced Friday to just over 11 years in prison for fraud in running her startup Theranos, which promised a revolution in health diagnostics.

The accused, pregnant and mother of a little boy, has until April 27 to start her sentence, said Judge Edward Davila. After four months of a media trial in the court of San Jose, California, she was found guilty in January of having lied to investors about the real progress of his company.

“I take, before you, my responsibilities for Theranos”, she told the hearing on Friday, sobbing, just before the sentencing. “I am devastated by my failures,” she added. “Not a day has gone by in the past few years that I haven’t been deeply touched by what people have gone through because of my mistakes. “At the statement of the verdict, the partner and the parents of the former leader, 38 years old today, came to hug her.

The prosecution had requested fifteen years in prison and wanted her to return 800 million dollars to her victims. The defense had pleaded for a maximum sentence of one and a half years. Her lawyer said Friday that she would appeal.

Manipulation and lies

“The tragedy in this case is that Mrs Holmes is brilliant” and that she has managed to find a place for herself in a world “dominated by male egos”, noted the judge. But there was also enough evidence of “manipulations and lies used to do business”he added.

The magistrate explained that he did not take into account Elizabeth Holmes’ apparent disregard for the potential risks to patients insofar as she was acquitted of charges of fraud against them. The fact that she did not acknowledge her responsibility by pleading not guilty, on the other hand, played against her.he said.

The judge also noted that he had not taken into consideration all the losses generated by the fall of his company, but only part of those collected by ten investors, namely 121 million dollars. The amount it will have to return to investors will be decided at a later date.. She will not be fined.

Prosecutor Jeff Schenk argued in court that the sentence should reflect the idea that “the end does not justify the means”. It is not “a punishment for Ms Holmes’ dream” but a punishment for “the decision to deceive investors”, he insisted.

The young woman’s lawyer, Kevin Downey, replied that his client had never been motivated by greed: she could have gotten rich but never sold stocks, using the money to build her technology.

Beautiful story

Elizabeth Holmes founded Theranos in 2003, aged just 19in the idea of make a quick, painless and cheaper blood diagnostic tool than those of traditional laboratories.

With the help of a well-worked narrative and appearance, she had come to a few years of earning the trust of luminaries and raising funds from prestigious investors attracted by the profile of this young woman, a rarity in the male world of Californian engineers.

“I thought it would be the next Apple”had summed up during the trial Adam Rosendorff, who was once the director of the company’s laboratory.

The story was beautiful. As a child, she hated injections. So she wanted to invent a machine that would perform hundreds of blood diagnoses from a single drop of blood.taken from the tip of the finger.

Media magnate Rupert Murdoch, former Secretary of State Henry Kissinger and Jim Mattis, Donald Trump’s defense minister, were once convinced by Elizabeth Holmes’ project. At its peak, the company was valued at nearly $10 billion.

But in 2015, the scandal came to light when the Wall Street Journal revealed that the machine never worked as she should.

Ramesh “Sunny” Balwani, Elizabeth Holmes’ former partner and COO of Theranos, was tried separately and was also found guilty of fraud. His sentence is due on December 7.

You may also like

Leave a Comment