Chilivis Grubman previously reported the conviction of Theranos’ Founder, Elizabeth Holmes. Holmes was found guilty of one count of conspiracy to defraud investors and three counts of wire fraud. Holmes is now asking the Court for leniency in light of her upcoming sentencing hearing scheduled for November 18th.
On November 10th, Holmes’ defense team submitted an 82-page document, accompanied by over 100 letters of support, requesting 18 months of house arrest. Holmes’ attorneys asked U.S. District Judge Edward Davila to “[…] consider, as it must, the real person, the real company and the complex circumstances surrounding the offense.” The Government responded with a 46-page brief asking the Court to sentence Holmes to 15 years in prison. Assistant U.S. Attorney Robert S. Leach specifically noted that “[Holmes] repeatedly chose lies, hype and the prospect of billions of dollars over patient safety and fair dealing with investors.”
Holmes founded Theranos in 2003 at the age of 19. Theranos was an American privately held corporation that claimed to have developed blood tests only requiring small amounts of blood. However, it was found that Theranos’ devices produced inaccurate results, and the company was actually running blood tests using competitor companies’ machines. At its peak, Theranos was valued at $9 billion dollars and, Forbes magazine estimated Holmes’ net worth at $4.5 billion in 2015. Holmes currently faces up to 80 years in prison, and she will learn her fate this week.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with fraud investigations. If you need assistance with such a matter, please contact us today.