The previous COO of disgraced blood testing startup Theranos, Ramesh “Sunny” Balwani was sentenced to 155 months, or about 13 years, in jail, and three years of probation. After a three-month trial, Balwani was discovered responsible on all 12 legal fees, starting from defrauding sufferers and buyers to conspiring to commit fraud. Theranos CEO Elizabeth Holmes was convicted on 4 of those fees and was sentenced to 11.25 years in jail final month.
Regardless of the disparate outcomes from the 2 separate juries in two particular person trials, Decide Ed Davila calculated Holmes’ and Balwani’s sentencing ranges to be precisely the identical: 135 to 168 months, or 11.25 to 14 years. In each circumstances, prosecutor Jeff Schenk countered by asking for 15 years.
Balwani’s attorneys tried to argue that he ought to get a extra lenient sentence than Holmes, as he was not CEO.
“He’s not Ms. Holmes. He didn’t pursue fame and fortune,” stated Balwani’s lawyer Jeffrey Coopersmith.
Decide Davila even famous that the courtroom noticed one other aspect of Balwani once they had been instructed about his charitable giving, a few of which occurred after Theranos. But Balwani nonetheless acquired a extreme sentence of 13 years.
Holmes and Balwani had been presupposed to be tried for fraud collectively, however the former CEO filed for a separate trial, stating that Balwani, who’s 20 years her senior, had emotionally and sexually abused her throughout their lengthy romantic relationship. Although the courtroom was not ruling on these allegations, the choose granted the request.
All through the trial, Balwani’s attorneys tried to make the case that despite the fact that he was an investor and government at Theranos, he was not concerned in key decision-making. The protection did not argue for his innocence, although. In a single piece of proof, the jury was introduced a textual content from Balwani to Holmes that learn, “I’m accountable for all the pieces at Theranos.”
Balwani’s trial featured the identical proof that indicted Holmes. The prosecution targeted on a key piece of proof referring to Theranos’ relationship with Walgreens. The biotech startup’s defective expertise made its means into 41 Walgreens shops, however unbeknownst to the pharmacy big, a lot of the checks had been carried out on third-party gear. Theranos’ personal machines couldn’t produce correct check outcomes, so plenty of sufferers had blood drawn not with a finger prick however intravenously. So, Walgreens principally spent $140 million in its partnership with Theranos, just for the startup to make use of the identical previous tech that was already in use.
Regardless of claims on the contrary, a Walgreens government testified that he labored intently with Balwani on the deal. The prosecution additionally displayed proof of a textual content from Balwani to Holmes stating that he intentionally didn’t inform Walgreens that they had been utilizing completely different machines.
For sufferers that had been unfortunate sufficient to have their blood examined with Theranos’ expertise, some obtained wildly inaccurate outcomes that induced important disruption to their lives. In a single case, a mom with a historical past of miscarriages was wrongly knowledgeable that she would have one other unsuccessful being pregnant. One other affected person, Erin Tompkins, used Theranos for its low prices, obtained flagged as HIV-positive, after which lived in limbo for 3 months till she may afford a second blood check. Because it turned out, she didn’t even have HIV. In the meantime, a affected person named Mehrl Ellsworth was given a false most cancers analysis.
Not like the jury at Holmes’ trial, the jury at Balwani’s trial held him accountable for defrauding sufferers, not simply buyers.
Earlier than the previous COO’s sentencing listening to, Balwani’s attorneys filed 40 objections to the probation workplace’s pre-sentence investigation report, based on tweets from Legislation 360 reporter Dorothy Atkins, who was current on the listening to. Decide Davila, who additionally presided over Holmes’ trial, stated that solely 4 of these objections had been substantive.
“Often sentencing hearings are morbid whatever the crime — like watching a automotive crash the place you watch households and lives being destroyed in actual time,” Atkins tweeted from the courtroom room. “This one feels extra like an accounting class.”
It will definitely not be unprecedented if Balwani decides to attraction this ruling. After Holmes’ personal sentencing, the previous Theranos CEO instructed a California federal choose that she would attraction her conviction. She then requested to remain out of custody whereas her attraction is into account, additionally citing that she is at present pregnant along with her second youngster. Because it stands, Holmes’ give up date is April 27, whereas Balwani will report back to jail on March 15.
