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It's judgment1 day for Theranos founder2 Elizabeth Holmes
SAN JOSE, Calif – Former Silicon4 Valley star Elizabeth Holmes is heading to a federal courthouse here on Friday to beg for leniency5 during her sentencing hearing, likely the final chapter in the years-long saga6 of Theranos, the blood-testing startup she founded. Prosecutors7 are expected to argue that she deserves 15 years in prison.
Judgment day for Holmes follows a jury convicting her on fours counts of defrauding8 investors10 out of hundreds of millions of dollars with false and misleading claims about what her supposedly breakthrough technology could do with just a few drops of blood. Behind the scenes, it turned out, she was relying on traditional lab testing machines.
In 2014, Theranos was estimated to be worth $9 billion, more than the value of Uber and Spotify at the time. Not long after, the company began to unravel11.
The story of Holmes, an eccentric tech leader who once drew comparisons to Steve Jobs and inspired fawning12 attention in the media, is one of the most dramatic downfalls of a business leader in recent history.
Federal prosecutors called Holmes' crimes in court papers ahead of the hearing "among the most substantial white-collar offenses13 Silicon Valley, or any other district, has seen," but defense14 lawyers for Holmes counter that she has shown remorse15 and that she is being punished for nothing more than a startup failure.
Defense lawyers are asking that Holmes stay out of prison and instead serve time in home confinement16. But Holmes' legal team also said in court papers that if incarceration17 is deemed necessary, she should not spend any longer than 18 months. That's in sharp contrast to the 15 years prosecutors are pushing for, just shy of the maximum prison time she could face of 20 years under federal guidelines.
The decision rests solely18 with U.S. District Judge Ed Davila, who presided over Holmes' trial, and the separate trial of Theranos' No. 2 executive, Ramesh "Sunny" Balwani, who was also convicted of fraud and is scheduled to be sentenced next month.
Back in January, the jury in Holmes' case returned a mixed verdict: Jurors acquitted19 her of fraud related to Theranos patients who were harmed, but they convicted her of counts linked to investors who were hoodwinked.
Prosecutors, however, have argued that the patients who received incorrect blood test results because of the company's faulty technology represent facts that should be considered "relevant conduct for sentencing purposes," meaning the patients could still play into Davila's sentence.
Letters from her partner, a tech investor9 and a senator ask for mercy
Holmes' legal team submitted 130 letters to the judge from friends, family and other supporters, including New Jersey20 Sen. Cory Booker, who is a longtime friend of Holmes. In his letter, Booker wrote, "Each of us is more than the worst thing we've done," citing Bryan Stevenson, the criminal justice reform advocate and lawyer.
Billy Evans, Holmes' partner, wrote the judge asking for mercy and described the impact the case has had on their family. The submission21 includes photos of the the couple with their 1-year-old son and their dog, Balto, which the family says was killed by mountain lions. Evans wrote that Holmes has already paid mightily22 for enduring the notoriety that followed Theranos crumbling23 under pressure.
Photos of Elizabeth Holmes and her partner, Billy Evans, included as part of a public court submission to Judge Ed Davila, who will preside over Holmes' sentencing hearing on Friday.
United States District Court for the Northern District of California
"If you are to know Liz, it is to know that she is honest, humble24, selfless, and kind beyond what most people have ever experienced," Evans wrote. "Please let her be free."
Holmes, who is 38 years old, was visibly pregnant with her second child at her last court appearance. If Davila hands down a prison sentence, her pregnancy25 could influence when her confinement starts.
Her lawyers also point out that she has been volunteering as a sexual assault victim counselor26. Holmes is herself a survivor27 of sexual assault, which she spoke28 about when she took the stand in emotional testimony29 that stretched on for days at trial.
Holmes' defense team has argued that the media scrutiny30 and legal proceedings31 connected to the collapse32 of Theranos is punishment enough, a point her lawyers hammer home to the judge by quoting a letter sent to the court from tech investor David Sokol.
"She poses no danger to anyone. She openly acknowledges her business mistakes and she did not benefit in any material way notwithstanding the opportunity to do so," Sokol wrote. "Her suffering, including among other things extreme public ignominy, financial bankruptcy33 and the terrifying prospect34 of incarceration while the mother of a new baby, provides more than ample deterrence36 to others."
In their memo37 to the judge, prosecutors point out that in fraud cases, the amount of lost money is weighed more heavily than any other factor when it comes to sentencing according to federal guidelines.
Theranos raised nearly $1 billion from people including medial mogul Rupert Murdoch and Oracle38 chief executive Larry Ellison before the company's implosion39. The amount of Holmes' fraud is not even fully40 captured in the highest level of loss in the guidelines, which caps out at more than $550 million. In other words, the sheer dollar amount of money defrauded41 in the case, prosecutors argue, leaves no other choice but to send Holmes away for more than a decade behind bars.
Prosecutors highlight a further reason they are pushing to have Holmes locked up: to send a signal to Silicon Valley.
"A significant custodial42 sentence will serve not only to deter35 future startup fraud schemes," prosecutors wrote. "But it will also serve to rebuild the trust investors must have when funding innovation."
1 judgment | |
n.审判;判断力,识别力,看法,意见 | |
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2 Founder | |
n.创始者,缔造者 | |
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3 transcript | |
n.抄本,誊本,副本,肄业证书 | |
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4 silicon | |
n.硅(旧名矽) | |
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5 leniency | |
n.宽大(不严厉) | |
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6 saga | |
n.(尤指中世纪北欧海盗的)故事,英雄传奇 | |
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7 prosecutors | |
检举人( prosecutor的名词复数 ); 告发人; 起诉人; 公诉人 | |
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8 defrauding | |
v.诈取,骗取( defraud的现在分词 ) | |
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9 investor | |
n.投资者,投资人 | |
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10 investors | |
n.投资者,出资者( investor的名词复数 ) | |
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11 unravel | |
v.弄清楚(秘密);拆开,解开,松开 | |
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12 fawning | |
adj.乞怜的,奉承的v.(尤指狗等)跳过来往人身上蹭以示亲热( fawn的现在分词 );巴结;讨好 | |
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13 offenses | |
n.进攻( offense的名词复数 );(球队的)前锋;进攻方法;攻势 | |
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14 defense | |
n.防御,保卫;[pl.]防务工事;辩护,答辩 | |
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15 remorse | |
n.痛恨,悔恨,自责 | |
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16 confinement | |
n.幽禁,拘留,监禁;分娩;限制,局限 | |
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17 incarceration | |
n.监禁,禁闭;钳闭 | |
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18 solely | |
adv.仅仅,唯一地 | |
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19 acquitted | |
宣判…无罪( acquit的过去式和过去分词 ); 使(自己)作出某种表现 | |
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20 jersey | |
n.运动衫 | |
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21 submission | |
n.服从,投降;温顺,谦虚;提出 | |
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22 mightily | |
ad.强烈地;非常地 | |
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23 crumbling | |
adj.摇摇欲坠的 | |
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24 humble | |
adj.谦卑的,恭顺的;地位低下的;v.降低,贬低 | |
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25 pregnancy | |
n.怀孕,怀孕期 | |
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26 counselor | |
n.顾问,法律顾问 | |
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27 survivor | |
n.生存者,残存者,幸存者 | |
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28 spoke | |
n.(车轮的)辐条;轮辐;破坏某人的计划;阻挠某人的行动 v.讲,谈(speak的过去式);说;演说;从某种观点来说 | |
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29 testimony | |
n.证词;见证,证明 | |
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30 scrutiny | |
n.详细检查,仔细观察 | |
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31 proceedings | |
n.进程,过程,议程;诉讼(程序);公报 | |
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32 collapse | |
vi.累倒;昏倒;倒塌;塌陷 | |
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33 bankruptcy | |
n.破产;无偿付能力 | |
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34 prospect | |
n.前景,前途;景色,视野 | |
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35 deter | |
vt.阻止,使不敢,吓住 | |
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36 deterrence | |
威慑,制止; 制止物,制止因素; 挽留的事物; 核威慑 | |
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37 memo | |
n.照会,备忘录;便笺;通知书;规章 | |
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38 oracle | |
n.神谕,神谕处,预言 | |
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39 implosion | |
n.向内破裂,内爆 | |
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40 fully | |
adv.完全地,全部地,彻底地;充分地 | |
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41 defrauded | |
v.诈取,骗取( defraud的过去式和过去分词 ) | |
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42 custodial | |
adj.监护的,照管的 | |
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