But how did it get to that point? When she needed more investors to help the company expand, Sunny gave her enough money to keep going. Albany, GA (31701) Today. Got a confidential news tip? Prosecutors have submitted texts she exchanged with Theranos co-founder Sunny Balwani, her former secret lover, in 2014 and 2015 . Former Theranos president Ramesh "Sunny" Balwani, who was indicted Friday on two counts of conspiracy to commit wire fraud and nine counts of wire fraud, is fighting back with a curious legal . Heres everything you need to know. Holmes, 37, took the stand before the defense rested Wednesday, fielding questions from her lawyer Kevin Downey and portraying Balwani as a Svengali who took advantage of her youth and inexperience. Ramesh "Sunny" Balwani, the business partner of disgraced Theranos founder Elizabeth Holmes, has been sentenced to nearly 13 years in prison. The former chief operating officer of Theranos was found guilty on all 12 charges.. Balwani was convicted of 12 counts of fraud and conspiracy in July. Balwani didn't testify in his own defense. Elizabeth Holmes during her testimony blamed ex-boyfriend Ramesh "Sunny" Balwani for much of the deception that occurred at her biotech company Theranos. He is expected to appeal his conviction. In the last moments of her testimony Wednesday, Holmes reiterated that she never intended to mislead investors, even though she admitted that they lost money under her reign. Convicted fraudster Elizabeth Holmes has submitted a court request to remain out of prison for the duration of her appeal, owing to the fact that she recently gave birth to her second child.. Balwani, who also served as chief operating officer at Theranos, was convicted in July after a 13-week trial that detailed his trajectory from a wealthy software engineer who formed a romantic relationship with Holmes to a second-in-command figure at Theranos who invested millions in the startup and oversaw day-to-day operations. Ramesh "Sunny" Balwani, the former romantic partner of Elizabeth Holmes and president of disgraced blood testing company Theranos, was sentenced Wednesday to 155 months, or nearly 13 years, in prison. All rights reserved. Sunny Balwani, former president of Theranos Inc., arrives at federal court in San Jose, California, on Wednesday, Dec. 7, 2022. Balwani's lawyers, meanwhile, said their client should not receive any jail time, arguing instead that probation would prove sufficient. Do Not Sell or Share My Personal Information. He is being tried separately next year. Comparisons between Balwani and his ex-girlfriend and former Theranos CEO Elizabeth Holmes have increased . On July 7, 2022, Balwani was found guilty of all 12 counts of defrauding both investors in Theranos and patients who received blood tests using Theranos' equipment, as reported by The New York Times 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. Elizabeth Holmes' play to delay her sentencing worked like a charm, as the Theranos founder is getting an evidentiary hearing today rather than the previously-scheduled sentencing.Her co-conspirator, Ramesh "Sunny" Balwani, won't get the same opportunity, however. Sunny and Elizabeth met in Beijing, China, in 2002. Heres What To Know. Throughout the entire Theranos ordeal, Balwani had maintained his innocence. David Paul Morris/Bloomberg via Getty Images, Bad Blood: Secrets and Lies In aSilicon Valley Startup. The Dropout's Sunny Balwani's criminal trial is underway in San Jose, California, and texts between him and Elizabeth Holmes are set to play a key role in the prosecution case. Last month, Balwani received a three-week delay in sentencing to give probation officers additional time to offer a recommended punishment. Sunny Balwani (Naveen Andrews) and Elizabeth Holmes (Amanda Seyfried) in Hulu's 'The Dropout.' Beth Dubber/Hulu Throughout history, there have been many heterosexuals who have sullied the good . Holmes' trial took place first, and on January 3, 2022, she was convicted of four out of the 11 counts, per The New York Times three counts of wire fraud and one count ofconspiracy to commit wire fraud by lying to investors to raise money for her company. Ramesh "Sunny" Balwani, former president and chief operating officer (COO) of Theranos arrives during jury deliberations at his federal trial for wire fraud and conspiracy to commit wire fraud in San Jose, California, June 28, 2022. Six months later, in late 2009, Balwani was made the president and COO of the company, in spite of the fact he didn't have experience in science or lab testing. 'We are lazy and disorganized and not focused, in work but also in the context of u and me,' he said. The revelations about Theranos brought about a stunning fall from grace for both Balwani and Holmes, who were in a relationship for much of their tenure at the company. During his tenure, Theranos had repeated failures, including falsified documents and erroneous test results. Balwani is scheduled to be sentenced in federal court in San Jose on Dec. 7. (Balwani will face the same charges and potential sentencing as Holmes.). After one incident in which Balwani allegedly forced her to have sex, Holmes wrote in a document recorded on her iPhone: Dont enjoy literally anything about it or who I am if I did it. As the story of Theranos came to light, another company executive who had primarily worked behind the scenes during the company's golden years attracted interest. 1. Prosecutors saidBalwani, 57, conspired with Holmes, 38, to deceive Silicon Valley investors into believing the company had achieved miniaturized machines that could accurately run a broad array of medical diagnostic tests from a small amount of blood. He faces the same fate as Elizabeth Holmes. No one at the timeinvestors, board members, partners, employeesknew of their romantic relationship. Balwani's trial has been scheduled for next year. I wanted to change the impact the company could make for people and for health care, Holmes said. Ramesh "Sunny" Balwani, the former romantic partner of Elizabeth Holmes and president of disgraced blood testing company Theranos, was sentenced Wednesday to 155 months, or nearly 13 years, in prison. She testified that when she laterstarted dating Balwani, he said I was safe now that I had met him.. "'You are being monitored. Her boyfriend Ramesh Sunny Balwani, who also served as the president and chief operating officer of Theranos, was by Elizabeth's side most of the wayand he plays a big role in the legal issues that arose, too. His whereabouts now have not been reported. And Holmes's mother told that reporter: As a parent, I do hope that at some point she will have time for herself.. Holmes replied: 'What makes you say lazy.'. David Paul MorrisGetty Images After working at companies like Microsoft and Lotus, Sunny made his. Down to 5 people. Balwani, 57, is also trying to convince U.S. District Judge Edward Davila to delay the start of his nearly 13-year prison sentence. Ex-Theranos President Sunny Balwani Has Been Sentenced to Jail His nearly 13-year ordered term is even longer than what Elizabeth Holmes received. By 2009, Holmes had burned through most of the companys early investor capital and needed a loan to reach the next stage of fundraising. They developed a friendship, which later turned into a romantic relationship and then a dysfunctional partnership with Balwani investing some $12-14 million into Holmes company before leaving in 2016. On Sept. 6, Holmes filed a petition for a new trial based on the reliability of testimony provided by former Theranos lab director . In a sentencing . #Update: Prosecutors ask for a 15-year prison sentence (and $803 million in restitution) for Sunny Balwani, former boyfriend of Elizabeth Holmes and COO of Theranos.He was convicted on 12 counts of fraud and conspiracy.His sentencing is December 7th. Ultimately, however, a jury found him guilty of misleading investors and patients as the company raised more than a billion dollars and formed partnerships with drugstore giants Walgreens and Safeway. Both Holmes and Balwani were indicted on wire fraud charges in . In the same year, Holmes was sued for fraud by the SEC alongside former company president Sunny Balwani, who was also her ex-boyfriend. A former Theranos employee told 60 Minutes that Sunny was abrupt with staffers and would fire people on the spot who didnt produce the test results they were after. Holmes will be sentenced in September and remains out on bail as of July 12, 2022. The other main character from this real-life saga is Ramesh "Sunny" Balwani, the Theranos founder's business partner and ex-boyfriend. Former Theranos Chief Operating Officer and President Ramesh "Sunny" Balwani was sentenced to nearly 13 years in prison Wednesday for fraud, after the unraveling of the blood-testing juggernaut. She broke down in tears on the stand and claimed he controlled her schedule, her appearance, and her interactions with her family. BY Michael Liedtke and The Associated Press. Balwani and Holmes's relationship ended at about the same time he left Theranos. In February, after Holmes's trial wrapped, Balwanis counsel asked the judge to exclude from his trial any evidence or information obtained during Holmess proceedings. Where Is Theranos COO Ramesh Sunny Balwani Now? Balwani ran operations at Theranos as it secured investments from, among others, News Corp.'s Rupert Murdoch and former Trump Cabinet official Betsy DeVos. February 18, 2023, 5:15 PM UTC . And, despite sharing a residence four miles from Theranos headquarters, many of the employees were unaware they were involved. So so much. Besides overseeing arguments about Balwani's attempt to delay the start of his nearly 13-year prison sentence, U.S. District Judge Edward Davila also heard a vigorous debate about how much money Balwani should pay investors and patients duped by the Theranos blood tests that never worked as promised. Both Holmes and Balwani seemed to be complicit in misleading investors and the public about Theranos's blood-testing capabilities. During her trial, Elizabeth accused Sunny of emotional and physical abuse, which he has since denied. Best Travel Backpacks For Every Type Of Traveler, Everything (!!!) Sign up for free newsletters and get more CNBC delivered to your inbox. , updated She dropped out of Stanford in 2003 to work on Theranos full-time. Jurors were also instructed to avoid speculating why Balwani was absent from Holmes' trial. Where Is Elizabeth Holmes Now? Juries in the trials of Elizabeth and Sunny concluded that both misled investors, per WaPost. During the sentencing hearing, attorneys for Balwani attempted to pin the blame on Holmes, telling U.S. District Court Judge Edward J. Davila that "decisions were made by Elizabeth Holmes.". According to reporting by The Wall Street Journals John Carryrou, who first exposed Thernos fraudulent claims to investors in a series of articles, Balwani and Holmes relationship began as a friendship in the summer of 2002. As COO, Balwani managed both the laboratory business and the financial aspects of the company. He did not defraud consumers but instead worked tirelessly to empower them with access to their own health information. FILE - Ramesh "Sunny" Balwani, right, the former lover and business partner of Theranos CEO Elizabeth Holmes, walks into federal court in San Jose, Calif., June 24, 2022. Though it would later collapse, Balwani reportedly left with $40 million. On Dec. 7 in San Jose, California, Federal District Judge Edward J. Davila sentenced Sunny to nearly 13 years in prison, according to The Washington Post. In another, they worried about a Wall Street Journal reporter visiting their lab to try out Theranos blood test technology. Ahead of her sentencing, her . On Dec. 7, Federal District Judge Edward J. Davila sentenced Sunny to nearly 13 years in prison, according to The Washington Post. 2023 NYP Holdings, Inc. All Rights Reserved, Theranos fraudster Elizabeth Holmes gives birth to 2nd child as 11-year prison sentence looms, Disgraced Theranos founder Elizabeth Holmes responds to claim she tried to flee to Mexico, Elizabeth Holmes tried to flee to Mexico after conviction, prosecutors say, Elizabeth Holmes living in $13,000-per-month estate, showing no remorse: feds, told the jury that being raped while a student at Stanford University, Holmes nearly 20 years younger than Balwani. The . We may earn commission from links on this page, but we only recommend products we back. Divorce papers earlier that year show that Balwani was then recently separated. Hurts so much. The company's stock was severely hit, which led to the dissolution of the firm in September 2018. Several of the newly unsealed documents relate to the successful efforts by Holmes's ex-boyfriend, Ramesh "Sunny" Balwani, to separate his trial from hers. Holmes, who was romantically involved with Balwani for more than a decade, said their breakup was a process., He showed up at the church I would go to at night and at the Dish, which is where I used to run around Stanford, Holmes said. Both sides referenced the recent sentencing of Balwani's co-conspirator and former lover, Theranos founder and CEO Elizabeth Holmes, in their filings with the court. Restitution will be decided at a later date. More than two months after Theranos founder and former CEO Elizabeth Holmes was . In a 2014 New Yorker article, Theranos investor Henry Kissinger says he and his wife tried unsuccessfully to set Holmes up on dates. And in 2018, both Holmes and Balwani were indicted on charges of fraud. He has been ordered to report to prison on March 15, 2023. While Sunny faces up to two decades in prison on fraud charges, like Elizabeth, hes not currently in police custody. Balwani was born in Pakistan to a Sindhi Hindu family who emigrated to the United States. Balwani has denied Holmes' allegations. Davila didn't issue any rulings at the end of the 90-minute hearing. You Can Stream Every 'Rocky' Movie Right Now, 'WoF' Fans Say This Is the 'Biggest Choke' on Show, Daisy Jones & the Six Is a Rock Epic in 10 Parts, See Mariska Hargitays Emotional Tribute on IG. Part of her defense was to claim that he abused and manipulated her into any possible crime or fraud. Turn on desktop notifications for breaking stories about interest? It would also be far larger that than the $120 million loss estimate that Davila used in calculating Balwani's prison sentence. They kept their relationship a secret from Theranos staff and investors as well as the public. Federal prosecutors indicted Balwani and Holmes in 2018, the same year Holmes agreed to forfeit control of Theranos. What Is Theranos' Elizabeth Holmes' Net Worth? Your Privacy Choices: Opt Out of Sale/Targeted Ads. Feb. 17, 2023 1:19 PM PT. She spent two years as Hearst Digital Media's News Director, managing an international shared news desk. An interview with a Theranos assistant was also included and detailed how both Balwani and Holmes ordered each other flowers for Valentine's Day in 2016. In 2015, the company came under scrutiny. Although Holmes was recently convicted of fraud charges (and awaits sentencing later this year; she could face up to 20 years), Balwanis trial has not yet started. In Friday's hearing, one of Balwani's lawyers sought to deflect the blame for Theranos' eventual collapse to Holmes. The two sides also painted radically different pictures in their arguments about whether Balwani should be allowed to remain free during his appeal. Holmes also testified that Balwani abused her and forced her to have sex with him during the time the fraud charges took place. Sign up for NBC Bay Areas Housing Deconstructed newsletter. In November, disgraced Theranos founder Elizabeth Holmes was sentenced to 11 years in prison after a jury found her guilty of fraud for lying to investors about her company's technology, which she claimed could test for hundreds of diseases with a few drops of blood. He falsely and repeatedly claimed that their. She is scheduled to report to a prison in Bryon, Texas, on April 27 to begin a sentence of more than 11 years.
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