Ms. Holmes, who has been found guilty of three wire fraud charges and one wire fraud conspiracy, faces a maximum sentence of 20 years in prison for each case. She is expected to appeal the verdict and the court ordered that all “post-trial motions” must be filed by March 4th.
The time to conviction will allow prosecutors to bring a trial against Ms. Holmes’ alleged co-conspirator. Ramesh Balwanisaid a previous court filing. Mr. Balwani, also known as Sunny, was the chief operating officer of Theranos, the start-up Ms. Holmes founded in 2003 that she claimed would revolutionize healthcare with advanced blood tests. The blood tests ultimately didn’t work as advertised.
The US government also said in a file on Tuesday that it would dismiss three of its fraud allegations against Ms. Holmes after a jury was unable to pass judgment on her.
Ms. Holmes, 37, was found guilty of lying to investors about Theranos’ abilities so that she could raise money for the company. The jury acquitted her of four fraud allegations related to patients who had Theranos blood tests. They got bogged down in three other cases related to investing in the company.
Judge Edward J. Davila, who oversees the state case in the Northern District of California, has significant discretion in convicting Ms. Holmes. Her convictions involved investing more than $ 140 million in Theranos, and the large dollar amount could be a factor in her conviction, as well as the message the verdict sends to others in Silicon Valley.
Judge Davila is also overseeing the trial of Mr Balwani, who was indicted along with Ms. Holmes on identical charges in 2018. The cases of the two, who were business and romantic partners, were separated after Ms. Holmes suffered emotional and sexual abuse of Mr. Balwani. He pleaded not guilty of fraud and dismissed the abuse allegations.
Mr Balwani’s trial has been delayed by rising coronavirus cases in the Bay Area, where the case is being heard. The selection of the jury is to begin on March 9th.
Through September, Ms. Holmes remains free on a $ 500,000 property-backed bond. During the process she did allegedly lived with partner Billy Evans and young son on 74 acre estate in Woodside, California, an affluent town in Silicon Valley.