SAN JOSE, Calif. – In the ultimate chapter of the Theranos saga, Ramesh “Sunny” Balwani, the corporate’s former chief working officer and ex-boyfriend of founder Elizabeth Holmes, was found guilty of all 12 legal fraud costs.
Balwani had no response as the decision was learn on the U.S. District Court in San Jose, California and stared straight forward at Judge Edward Davila. Balwani’s relations may very well be seen consoling him, and his two brothers had been by his facet.
The jury found Balwani guilty on affected person counts as nicely, which was not the case for Holmes’ verdict.
Judge Davila set Balwani’s sentencing date for Nov. 15, and raised his bail quantity to $750,000. He will stay on probation till he’s sentenced. Balwani and his authorized crew left the courthouse with out answering questions.
“We are obviously disappointed with the verdicts. We plan to study and consider all of Mr. Balwani’s options including an appeal,” Balwani’s legal professional, Jeffrey Coopersmith, mentioned in an announcement.
Jurors deliberated for 5 days. Balwani, 57, sat masked subsequent to his protection attorneys, and shifted in his seat because the decide reviewed the decision.
Jurors heard from 24 authorities witnesses, who painted Balwani as an confederate to Holmes.
Each wire fraud rely carries a most sentence of 20 years in jail and the conspiracy rely carries a most of 5 years. Legal consultants anticipate Balwani will enchantment.
The trial started on March 22 and skilled a number of delays as a result of pandemic. Jurors heard from 24 authorities witnesses who painted Balwani as an confederate to his ex-girlfriend and Theranos CEO, Holmes.
Prosecutors alleged Balwani conspired with Holmes in a decade-long scheme to bilk a whole lot of hundreds of thousands of {dollars} from buyers and sufferers in an effort to maintain the struggling firm afloat. According to prosecutors, Balwani oversaw Theranos’ grossly inflated monetary initiatives, the lab operations and a doomed Walgreens deal. Theranos promised to revolutionize blood testing by making it cheaper, quicker and fewer painful than conventional lab exams.
“Balwani is not a victim,” Assistant U.S. Attorney Jeffrey Schenk mentioned in his closing argument. “He is a perpetrator of the fraud… Mr. Balwani knows that the biggest threat to fraud is the truth.”
Balwani’s authorized crew referred to as two witnesses: an Arizona doctor who used Theranos blood analyzers and an information expertise guide who testified a few lacking database, the Laboratory Information System, that contained affected person check outcomes. Balwani, not like Holmes, didn’t testify in his personal protection.
In January, a separate jury found Holmes guilty of three counts of legal wire fraud and one rely of conspiracy to commit wire fraud towards buyers. The jury acquitted her on costs associated to defrauding Theranos sufferers. Holmes stays on bail whereas she awaits her sentencing in September.
The former Silicon Valley executives raised almost $1 billion from highly effective buyers together with media mogul Rupert Murdoch, Oracle co-founder Larry Ellison, Silicon Valley investor Don Lucas, Walmart’s Walton household and the household of former Secretary of Education Betsy DeVos.
Holmes and Balwani additionally attracted notable names to their board of administrators together with former Secretary of Defense James Mattis, former Secretary of State Henry Kissinger and former Senator Sam Nunn. At its peak, Theranos was valued at over $9 billion and Balwani’s stake was price $500 million.
In a marathon 12-hour closing argument that spanned over three days, Balwani’s authorized crew blasted authorities witnesses and referred to as their case “incomplete.”
“Mr. Balwani put his heart and soul into Theranos, he worked tirelessly year after year to make the company a success,” Jeffrey Coopersmith, a protection legal professional for Balwani mentioned, and later added, “the government hasn’t proved Mr. Balwani tried to deceive or cheat anybody.”
Coopersmith requested the jury to contemplate why prosecutors did not name sure workers, buyers and board members to the stand, together with 4 DeVos relations who invested in Theranos.
“They invested $100 million,” Coopersmith mentioned. “You’d think they’d be bothered to come to testify, but we didn’t hear from them.” Lisa Peterson, the DeVos household wealth supervisor, testified within the trial on behalf of the household.
Balwani’s attorneys argued that he acted in good religion and actually believed within the capabilities of the blood-testing expertise, however former workers informed CNBC that Balwani was conscious of the issues and created a poisonous surroundings at Theranos.
In a July 2015 textual content message earlier obtained by CNBC and browse aloud in courtroom by the federal government, Balwani wrote to Holmes: “I am responsible for everything at Theranos. All have been my decisions too.”
“He’s acknowledging his role in the fraud,” Schenk mentioned referencing the textual content message.
CNBC’s Jill Silvestri contributed to this report.
Correction: The story’s headline was up to date to replicate that Balwani is the COO of Theranos.