Besides overseeing arguments about Balwani’s try and delay the beginning of his almost 13-year jail sentence, U.S. District Judge Edward Davila additionally heard a vigorous debate about how a lot cash Balwani ought to pay buyers and sufferers duped by the Theranos blood assessments that by no means labored as promised. The deceit resulted in Balwani’s conviction on 12 counts of fraud and conspiracy.
Davila did not subject any rulings on the finish of the 90-minute listening to. His choice on whether or not Balwani can stay free on bail whereas he appeals his conviction, nonetheless, is more likely to come quickly. That’s as a result of Balwani, 57, is scheduled to report back to jail in Lompoc, California, on March 15.
The decide mentioned he would not count on to resolve on the query of how a lot Balwani ought to pay in restitution till one other listening to on the identical points is held for Holmes, Theranos’ disgraced CEO, on March 17.
Holmes, 38, is also in search of to stay free on bail whereas she appeals her conviction on 4 counts of fraud and conspiracy. She is scheduled to report back to a jail in Bryon, Texas, on April 27 to start a sentence of greater than 11 years.
In Friday’s listening to, certainly one of Balwani’s legal professionals sought to deflect the blame for Theranos’ eventual collapse to Holmes. In her presentation, Amy Walsh asserted Theranos nonetheless had $350 million in money and mental property value about $100 million in May 2016 when Holmes fired Balwani as the corporate’s chief working officer and ended their romantic relationship.
Discover the tales of your curiosity
“When he walked out the door, the company was extremely valuable,” Walsh mentioned in Balwani’s protection.Davila appeared skeptical of that rationale, asking Walsh: “Are you saying his conduct was completely divorced from Theranos’ demise?”
Federal prosecutors are in search of a court docket order that may saddle Balwani with a restitution invoice of almost $900 million – a determine that may seemingly be largely symbolic. It would even be far bigger than the $120 million loss estimate that Davila utilized in calculating Balwani’s jail sentence.
Prosecutor Robert Leach brazenly scoffed at Walsh’s competition that Balwani ought to owe nothing, calling it a “remarkable position.”
The two sides additionally painted radically totally different footage of their arguments about whether or not Balwani must be allowed to stay free throughout his attraction.
Balwani lawyer Mark Davies alleged that authorities misconduct within the presentation of proof throughout Balwani’s trial makes it seemingly he’ll prevail within the attraction of his convictions. But federal prosecutor Kelly Volkar repeatedly denied any wrongdoing.
Davies additionally pressured Balwani’s compliance with all bail necessities since he was indicted in 2018 as proof that he is not a flight danger. The lawyer additionally pointed to Balwani’s non-violent historical past and previous charity work in India as proof he poses no hazard to the group.
Volkar urged Balwani could have extra incentive to flee along with his prolonged jail sentence now lower than a month away and argued he stays a possible menace.
“Damage can come in the form of economic harms as much as it can come in the form of violent harm,” Volkar mentioned.