Elizabeth Holmes, the disgraced president of Theranos, and her former romantic partner, Ramesh “Sunny” Balwani, were sentenced to 13 years in prison, which is equivalent to approximately 155 months, on Wednesday.
Holmes, the founder of Theranos, was sentenced to 135 months, which is equivalent to 11 1/4 years, in prison for deceiving investors. This sentencing occurred within three weeks of the verdict in federal court.
Balwani was instructed to present himself at the correctional facility on March 15, 2023. Determination regarding restitution will be made at a subsequent date. Alongside a prison term of 155 months, Balwani was mandated to complete a three-year probationary period following the verdict. At the age of 57, Balwani was found guilty in July on 12 charges of deceit and collusion for convincing investors and patients to place their trust in the company’s defective blood testing apparatus.
Legal experts anticipate that Balwani will face a sentence of 20 years for each of the 12 counts; however, these sentences are expected to be served concurrently, resulting in a maximum sentence of 20 years.
Prosecutors filed a legal memorandum last week arguing the severity of the fraud and the need to promote respect for the law by warranting a 15-year prison term for Balwani.
Balwani’s legal team contended that probation would be adequate, asserting that their client should be spared from incarceration. In a legal document, the attorneys highlighted Balwani’s financial setbacks related to Theranos and juxtaposed his limited public presence with Holmes, who garnered “celebrity status and extensive media coverage.” Simultaneously, Balwani’s legal representatives stated.
Balwani, due to an undisclosed health problem, had asked for a sentencing date in January 2023, where the attending members of his family could be sure to hear. Last month, Balwani received a three-week delay in sentencing, allowing additional time for probation officers to offer a recommended punishment.
Balwani, who also served as the chief operating officer at Theranos, formed a romantic relationship with Holmes, the second-in-command figure who oversaw day-to-day operations and the startup. Balwani, a wealthy software engineer, invested millions in Theranos and his detailed trajectory was revealed during a 13-week trial, which resulted in his conviction in July.
Theranos aimed to transform the medical testing sector by evaluating various potential health concerns with only a small amount of blood. However, when it was revealed that Balwani and Holmes deceived investors and the product did not function properly, the company, previously valued at $9 billion, became a symbol of misconduct in Silicon Valley.
During her trial, Holmes forcefully denied the accusations that Balwani physically and psychologically abused her over the course of their romantic relationship.
Stephen Cazares, the attorney for Said Balwani, stated, “Sunny Balwani was not the initiator of Theranos, he did not oversee Theranos, he did not possess ultimate decision-making power at Theranos.” Balwani’s lawyers portrayed Theranos as a project initiated and influenced by Holmes.
However, a jury ultimately found him guilty of misleading patients and investors, as the company raised more than a billion dollars through partnerships with Safeway, Walgreens, and other giants drugstores.
In the year 2018, Balwani and Holmes faced charges from federal prosecutors, and Holmes consented to relinquish her control over Theranos during that same year. Subsequently, in 2021, their trials were separated.
The sentence was delivered by Judge Edward J. Davila on Wednesday at a federal courthouse in San Jose, California. Holmes was given her sentence by Davila at the identical courthouse on Nov. 18.
Following the verdict, Holmes was instructed to undergo a period of three years of supervised release alongside a prison sentence of 135 months. It has been mandated that she present herself at the correctional facility on April 27, 2023.