Judge denies Elizabeth Holmes' request to stay out of prison while she appeals fraud conviction
LOS ANGELES, CALIFORNIA: Convicted former CEO of Theranos, Elizabeth Holmes, is scheduled to start her 135-month sentence from April 27. Meanwhile, a judge ordered that Holmes cannot be released on bail while she contests her fraud conviction.
Judge Edward Davila stated that the section of Holmes' conviction that is being appealed is not likely to be reversed, according to court documents submitted on Monday. In January 2022, a jury convicted Holmes guilty on four charges of fraud related to her role as CEO of Theranos.
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Why was Elizabeth Holmes' request denided?
According to Davila, the court did not find any compelling evidence to keep her out of jail. She is anticipated to appeal her conviction in the 9th Circuit Court. Former Theranos COO Ramesh "Sunny" Balwani, who was convicted on 12 counts of fraud, lost a similar appeal in the 9th Circuit.
What is Elizabeth Holmes being charged for?
Holmes was convicted of defrauding investors of millions by falsely claiming that Theranos technology could run hundreds of medical tests using just a few drops of blood in 2014.
Judge Davila stated that Holmes' conviction was based on a number of factors, including her fraudulent statements to investors, the company's finances and alleged business connections. “Whether the jury heard more or less evidence that tended to show the accuracy and reliability of Theranos technology does not diminish the evidence the jury heard of other misrepresentations Ms. Holmes made to investors,” Davila said, per NBC.
Did Elizabeth Holmes try to flee the country?
Despite the fact that Holmes' fiance, Billy Evans, bought them a one-way ticket to Mexico a few weeks after the jury's decision, Davila agreed that Holmes did not pose a flight risk. Davila said he agreed with Holmes' contention that the ticket, "while ill-advised," was not an attempt to exit the country, based on communications.
"Booking international travel plans for a criminal defendant in anticipation of a complete defense victory is a bold move, and the failure to promptly cancel those plans after a guilty verdict is a perilously careless oversight,” the judge said.