Former Theranos founder Elizabeth Holmes lost her motion for release after her legal team tried to appeal her conviction in the federal court. With this development, Holmes is set to surrender herself and begin her prison sentence later this month.
Judge Affirms Holmes' Fraud Conviction, Cites Lack of 'Substantial' Questioning
As reported by The Guardian, the disgraced Silicon Valley personality lost her chance to remain out of prison as Judge Edward Davila laid out an 11-page ruling, citing the reasons why Holmes should serve her prison sentence beginning on April 27th. Holmes' conviction was the result of defrauding investors who believed in her supposedly groundbreaking startup business, Theranos. According to Davila, Holmes' appeal didn't show "substantial questioning of facts or law."
Specifically, Judge Davila argued that Holmes' motion should have addressed the main reason for her conviction, which is the federal crime of wire fraud that was committed against Theranos investors. Hence, the judge saw no reason to reverse the conviction or to start a new trial, even if there was a chance that the appeals court would hear her claims.
Despite the junking of her motion for release, the federal court ruling sided with Holmes on the matter of being branded as a flight risk. Prosecutors argued that Holmes should be considered a flight risk following the purchase of a one-way ticket to Mexico even as the then-defendant was still waiting for the result of the trial, Engadget reported.
While Judge Davila believes that Holmes is "not likely to flee or pose a danger," he commented that the act of buying a flight ticket, and the subsequent failure to cancel it after receiving a conviction, is a "bold move" and a "perilously careless oversight."
Related Article: Theranos Founder Elizabeth Holmes May Serve Her Sentence in a Prison Camp, Judge Suggests
Holmes Could Serve Her Sentence in Texas; Remaining Please Aims to Delay Deadline for Surrender
Judge Davila further stated in his ruling that showing the "accuracy and reliability of Theranos technology" holds no merit as the conviction is about the "misrepresentations Ms Holmes had made to investors." As per CBS News, the judge has recommended Holmes be transported to a minimum security facility in Bryan, Texas to serve her prison sentence. Still, the final place of confinement will be determined by the federal prison authorities.
After losing her motion for release, Holmes now has one remaining please to the 9th Circuit Court of Appeals, which aims to move the April 27 deadline to surrender to start her prison sentence. However, the chance of the plea being granted might be low as the same plea was also made by her former beau and another convicted Theranos executive, Ramesh "Sunny" Balwani, which the court denied earlier this month.
Holmes was sentenced to over 11 years in prison last November over fraud and conspiracy cases surrounding the health technology company Theranos. Holmes founded the company in 2003, which was built on a promise of delivering breakthrough medical procedures. For one, Theranos claimed that it had the technology to discover all the health issues of a patient with just one drop of blood. In 2015, a Wall Street Journal report exposed that Theranos' technology was just bogus.
