Elizabeth Holmes leaves federal court after the verdict in San Jose, Calif., Monday, Jan. 3, 2022. Holmes was convicted of fraud for turning her blood-testing startup Theranos into a sophisticated sham that duped billionaires and other unwitting investors into backing a seemingly revolutionary company whose medical technology never worked as promise. Photo: Nic Coury/AP Elizabeth Holmes' Odd Verdict and Probable Massive Jail Sentence
The verdict is weird. Only in California can you get yes, no, and we don't know. Prosecutions are typically binary. Defendant is charged, and either pleads guilty or goes to trial. At trial, usually, you see guilty or not guilty, sometimes neither, and the jury can't agree or is hung. It's unusual to get all three in one case.
January 04, 2022 at 01:08 PM
8 minute read
Commentary
On Monday, Jan. 3, Elizabeth Holmes was found guilty of defrauding investors. The jury came back with convictions of substantive fraud (18 U.S.C. § 1343, Counts 6, 7, and 8) and conspiracy (18 U.S.C. § 1349, Count 1) while acquitting her of the fraud counts centered on defrauding individual patients (Counts 2, 10, 11). They couldn't agree on several counts involving specific wire transfers (Counts 3, 4, 5), amounting to several million dollars alleged by the government to have been part of the fraud scheme, but acquitted her of another wire alleged to have been sent as part of the scheme to defraud patients (Count 12).
We wrote an article at the outset of the trial scratching our heads about the potential defense of it wasn't fraud, I didn't do it, but if I did, you should blame my co-defendant, Ramesh "Sunny" Balwani.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
New Federal Pregnancy Regulations: Five Key Takeaways and Five Key Action Steps for Employers
7 minute read
Legal Profession's Mental Health Woes Start to Take Root in Law School, Many Attorneys Say
6 minute read
Trending Stories
- 1'Didn't Notice Patient Wasn't Breathing': $13.7M Verdict Against Anesthesiologists
- 2'Astronomical' Interest Rates: $1B Settlement to Resolve Allegations of 'Predatory' Lending Cancels $534M in Small-Business Debts
- 3Senator Plans to Reintroduce Bill to Split 9th Circuit
- 4Law Firms Converge to Defend HIPAA Regulation
- 5Judge Denies Retrial Bid by Ex-U.S. Sen. Menendez Over Evidentiary Error
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
