A significant chapter in one of the largest scandals in Silicon Valley history will be closed on Friday when Elizabeth Holmes‘s punishment for her part in the demise of Theranos Inc. is determined. The fate of the former CEO, 38, who defrauded investors out of millions of dollars in the blood-testing firm ten months after a jury found her guilty, now rests with US District Judge Edward Davila, who has been in charge of the case since 2018.
Holmes stands apart among white-collar criminals because, according to legal experts, only few of them are women who have been found guilty of such substantial deception. Her punishment could serve as an illustration of the repercussions of dishonest behaviour in the startup community. In an unexpected turn of events, the judge might take Holmes’s impending second child into account while deciding the penalty.
It takes “more art than science” to balance all the conflicting factors in order to determine a punishment, according to criminal defence attorney Amanda Kramer.
“Reduce Misbehaviour”
“A crucial question is how the judge will balance the many elements in this case, and how much weight the judge would give her present pregnancy and the fact that she has a toddler, relative to the requirement to reflect the seriousness of the offence and to deter misconduct,” she added.
According to sentencing guidelines, Holmes, who was found guilty of wire fraud and conspiracy, may receive a term of up to 20 years in prison. She should receive home confinement or, at most, 18 months in prison, according to her attorneys, who disagree with the US government’s request for 15 years in prison. She will probably contest her conviction.
Given the size of the fraud and the need to deter future crimes in the startup industry, where “fake it til you make it” braggadocio has been commonplace, the prosecution has claimed that a significant jail term is appropriate. Holmes allegedly sought to place some of the blame for her misdeeds on others on occasion and still acts without regret.
Holmes’ attorneys contend that because she is not the cheat that the media has portrayed her to be, she should be granted leniency.
Rape In Stanford
Her attorneys also mention the rape Holmes claims she experienced when an undergraduate at Stanford University, as well as the alleged psychological, physical, and sexual abuse committed by Ramesh “Sunny” Balwani, her ex-partner and former president of Theranos. He has refuted the charge, and in December, he will be sentenced for fraud.
For Holmes, the investment loss, which the US Probation Office estimated to be worth more than $550 million, is the main factor driving the offence level. The office, a separate division of the court that makes recommendations on prison terms, arrived at a nine-year suggestion.
Alan Ellis, a criminal defence attorney, claimed Holmes’ suggestion of no jail would have hindered her prospects of receiving a reduced sentence.
FAQ’s
1. Who is Elizabeth Holmes?
A. She is an American former Biotechnology entrepreneur.
2. What is her nationality?
A. United States
3. What is the profession of Elizabeth Holmes?
A. CEO of Theranos
4. What is her age?
A. 38 years old
5. What is her height?
A. 1.69 m
6. What is the reason behind her charges?
A. She is accused of criminal fraud
