Theranos executive Sunny Balwani loses bid to delay prison term

A federal choose has rejected former Theranos government Ramesh “Sunny” Balwani’s bid to stay free whereas he appeals his conviction for crimes he dedicated throughout a blood-testing rip-off he orchestrated along with his former boss and lover, Elizabeth Holmes.

The 17-page ruling issued late Thursday pushes Balwani, 57, a step nearer to having to start a virtually 13-year jail sentence he acquired after a jury convicted him of 12 counts of fraud and conspiracy final yr.

Balwani is scheduled to report back to jail March 15 until he can win a reprieve from a federal appeals court docket in a movement his legal professionals say they plan to file.

Unless the appeals court docket guidelines he can stay free, Balwani has been ordered to report back to an Atlanta federal jail, in line with court docket paperwork. The 121-year-old jail has been tormented by misconduct and different abuses described by whistleblowers throughout a congressional listening to final yr.

U.S. District Judge Edward Davila, who sentenced Balwani and denied his request to stay free on enchantment, had beneficial he serve his time in a Lompoc jail. That facility is positioned about 250 miles (400 kilometers) from the San Jose, California, courtroom the place his trial unfolded final yr.

The choose’s denial of Balwani’s request to stay free on enchantment might not bode effectively for Holmes, Theranos’ CEO and founder. Her legal professionals are additionally pushing Davila to permit her to remain out of jail throughout an enchantment of her conviction on 4 felony counts of investor fraud and conspiracy. A March 17 listening to has been scheduled for Holmes’ legal professionals to attempt to persuade Davila to permit her to stay free till the appeals case is resolved.

Holmes, 39, is scheduled to begin a sentence of greater than 11 years on April 27. That will separate her from a 1-year-old son she had shortly earlier than her trial started in September 2021 and a just lately born youngster she was carrying at her November sentencing.Although that they had separate trials, Holmes and Balwani had been accused of basically the identical crimes centered on a ruse touting Theranos’ blood-testing system as a revolutionary breakthrough in well being care. The claims helped the corporate develop into a Silicon Valley sensation that raised almost $1 billion from buyers.

But its know-how by no means got here near working like Holmes and Balwani boasted, leading to Theranos’ scandalous collapse and a legal case that shined a brilliant gentle on Silicon Valley greed and hubris.

Davila hasn’t but selected how a lot cash Holmes and Balwani every ought to should pay for his or her crimes. Federal prosecutors are in search of restitution of almost $900 million.

In a listening to final month on Balwani’s bid to stay free, his attorneys alleged federal prosecutors had distorted and misrepresented path proof in a way that makes it seemingly Balwani will prevail in his enchantment of the convictions. The legal professionals additionally pointed to Balwani’s non-violent historical past and previous charity work in India as justification for him remaining free, asserting that he poses no hazard to the neighborhood.

Although Davila agreed Balwani is neither a flight threat nor harmful, he concluded that also wasn’t sufficient to permit him to delay his time in jail. Davila wrote that he did not discover proof elevating “substantial question of law or fact” throughout Balwani’s four-month trial that might benefit overturning the jury’s verdict.

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