What Happens Next to Elizabeth Holmes

Elizabeth Holmes founded Theranos - a blood-testing technology company - in 2003, when she was 19. She is facing 12 charges of fraud. (Image: via Wikimedia Commons)

Elizabeth Holmes, founder of the failed blood testing startup Theranos, now awaits sentencing after being found guilty of four of 11 charges of fraud Monday.

Holmes, 37, left the San Jose, California, courtroom through a side door after the verdict was read in the case, which was closely scrutinized as a commentary on Silicon Valley. She was found guilty of three counts of wire fraud and one count of conspiracy to commit wire fraud. She was found not guilty on four other counts. The jury was unable to reach a verdict on three counts, which were set aside for later.

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After the verdict was read, defense and prosecution lawyers discussed plans for Holmes’ sentencing, the status of her probation and the fate of the three hung charges. Judge Edward Davila of the Northern District of California, who oversaw the case, said he planned to declare a mistrial on those charges, which the government could choose to retry. The parties agreed that Holmes would not be taken into custody Monday.

A sentencing date is expected to be set at a hearing on the three hung charges next week.

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Holmes can appeal the conviction, her sentence or both. She will also be interviewed by the U.S. Probation Office as it prepares a presentence report. A conference will be held next week on the three counts in which the jury could not reach a verdict.

Each count of wire fraud carries up to 20 years in prison, although Holmes is unlikely to receive the maximum sentence because she has no prior convictions, said Neama Rahmani, president of the West Coast Trial Lawyers and a former federal prosecutor.

But he said her sentence was likely to be on the higher end because of the amount of the money involved. Holmes raised $945 million for Theranos during the startup’s lifetime, and those investments were ultimately wiped out.

(Author: Erin Woo )/(c.2021 The New York Times Company)