© Reuters. FILE PHOTO: Ramesh “Sunny” Balwani, former president and chief working officer (COO) of Theranos and ex-boyfriend of founder Elizabeth Holmes, arrives throughout jury deliberations at his federal trial for wire fraud and conspiracy to commit wire fraud in S
By Jonathan Stempel
(Reuters) – U.S. prosecutors have requested a decide to condemn former Theranos Inc President Ramesh “Sunny” Balwani to fifteen years in jail for defrauding traders and sufferers within the blood-testing startup as soon as led by Elizabeth Holmes.
Balwani countered that probation, that means no jail time, is ample, citing his personal funding losses in an organization as soon as valued at $9 billion, and saying he by no means sought the “fame or media consideration” that Holmes attracted as Theranos’ public face.
The suggestions have been filed on Wednesday night time within the federal court docket in San Jose, California, the place Balwani will probably be sentenced on Dec. 7 by U.S. District Decide Edward Davila.
On Nov. 18, the decide sentenced Holmes to 11-1/4 years in jail, calling Theranos a once-exciting enterprise “dashed by untruths, misrepresentations, plain hubris and lies.”
She was convicted in January on 4 counts of fraud and conspiracy however acquitted of defrauding sufferers, whereas Balwani was convicted in January on all 12 fraud and conspiracy counts he confronted.
Prosecutors additionally need a court docket order requiring Balwani to pay $803.8 million, which they acknowledge he doesn’t have, to cowl losses by traders together with Walgreens, Safeway and the late U.S. Secretary of State George Shultz.
Holmes and Balwani have been convicted of mendacity about Theranos’ know-how, which as soon as provided hope that an array of medical diagnostic assessments may very well be carried out with just some drops of blood.
Prosecutors mentioned Balwani deserved an extended sentence than Holmes as a result of his offenses, notably the conspiracy to defraud sufferers with inaccurate blood assessments, confirmed a “aware or reckless threat of dying or critical bodily damage.”
Protection attorneys mentioned there isn’t any probability Balwani will commit one other crime, and that he performed a “demonstrably” lesser function than Holmes within the conduct underlying his conviction.
The case is U.S. v. Balwani, U.S. District Courtroom, Northern District of California, No. 18-cr-00258.