Former Theranos Executive Ramesh “Sunny” Balwani This was sentenced Wednesday to nearly 13 years in Prison for His role in the company’s blood-testing hoax — a sentence slightly longer than that given to The CEO was his lover and compagnon in one of Silicon Valley’s biggest scandals.
Balwani A conviction was obtained in July of fraud and conspiracy Connected to the company’s bogus medical technology that duped investors and endangered patients. He was sentenced in less than three weeks. Elizabeth Holmes, the company’s founder and CEO, received more than 11 years in prison for Her part in The scheme has been dissected in The book, HBO documentary and award winning TV series.
Balwani’s sentence was less than the 15 years Federal prosecutors wanted to charge him with being a brutal, power-hungry figure. However, it is significantly longer than the four. to His lawyers requested 10 months.
The scandal revolved around the company’s false claims to We have created a scanner that can scan for viruses. for You can easily get rid of hundreds of potential diseases by squeezing a few drops with your finger.
After years Promote the technology Holmes Balwani Although they were informed that the blood tests were not accurate, they were still performed. to Raising money from investors including billionaires such as Larry Ellison (software magnate) and Rupert Murdoch (media magnate), and then deploying the technology in some Walgreens stores.
U.S. District Court Judge Edward Davila stated the financial statements were prepared by Balwani “weren’t just projections, they were lies” “a true flight from honest business practices.”
The case threw a bright light on Silicon Valley’s dark side, exposing how its culture of hype and boundless ambition could veer into lies.
Both Holmes38 Balwani57-year old Vivien could have gone up to 20 years in prison. Balwani spent six years As Theranos’ chief operating officer while remaining romantically involved with Holmes Until it was too late in 2016.
Amanda Kramer, a former federal prosecutor, stated that the harsher sentence seemed appropriate given the verdict. in Balwani’s trial convicted him on every count while jurors in Holmes’ separate case acquitted her on some charges and deadlocked on others.
“It’s not surprising that he got a more severe sentence because his misconduct was was more severe,” Kramer stated.
While at the witness stand in She was a trial. Holmes accused Balwani by manipulating her through years Abuse of sexual and emotional feelings Balwani’s attorney has denied the allegations.
Federal prosecutors also want to see the judge to Order Balwani to Pay $804 Million in Restitution to defrauded investors — the same amount sought from Holmes. Davila deferred the decision on restitution to A later hearing was held just like he did during the original hearing Holmes’ Nov. 18 sentencing, when she received 11 1/4 years in prison.
In court documents, Balwani’s lawyers painted him as a hardworking immigrant who moved from India to The 1980s in the United States to becoming the first member in his family to Go to college. He graduated from University of Texas in 1990 with a degree in Information systems
He later moved to Silicon Valley, where he was first employed as a computer programmer for Before he founded an online startup, Microsoft sold it. for During the 1990s dot-com boom, it was worth millions.
Balwani Holmes She dropped out from Stanford University at the same time as her husband. to Start Theranos in 2003. He was captivated by her quest and became obsessed with her. to revolutionize health care.
Balwani’s lawyers said he eventually invested about $5 million in A stake in Theranos that eventually became worth about $500 million on paper — a fraction of Holmes’ one-time fortune of of $4.5 billion.
After that, the wealth vanished. Theranos Begin to Let it all unravel in 2015 was marred by revelations that the blood-testing technology used in 2015. Holmes Had boasted in Magazine articles glowingly praising her to Silicon Valley visionaries, such as Steve Jobs, Apple cofounder
Before Theranos’ downfall, Holmes We teamed up Balwani to raise nearly $1 billion from high-net-worth investors
“Mr. Balwani is not the same as Elizabeth Holmes,” His lawyers wrote in A memo to The judge. “”He invested millions of dollars of his money. He never sought fame or recognition. His long-standing tradition of silently giving has been impressive. to those less fortunate.” Balwani’s lawyers also asserted that Holmes “was dramatically more culpable” for The Theranos fraud.
Echoing similar claims made by Holmes’s lawyers before her sentencing, Balwani’s attorneys also argued that he has been adequately punished by the intense media coverage of Theranos.
Balwani “has lost his career, his reputation and his ability to meaningfully work again,” His lawyers wrote.
Federal prosecutors cast Balwani As a brutal, power-hungry companion in Investors were ripped off and people who had received flawed results were put at risk. The blood tests were to Be available in a partnership with Walgreen’s that Balwani helped engineer.
“Balwani presented a fake story about Theranos’ technology and financial stability day after day in meeting after meeting,” The prosecutors wrote in Their memo to The judge. “Balwani maintained this façade of accomplishments, after making the calculated decision that honesty would destroy Theranos.”
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