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Tuesday, March 21, 2023

Prosecution calls Holmes a flight risk

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SAN JOSE, Calif. (KRON) — The disgraced Silicon Valley entrepreneur is back in court Friday. A federal judge is slated to make a ruling over how much restitution she must pay her victims. Elizabeth Holmes, 38, of Woodside, defrauded sophisticated investors out of hundreds of millions of dollars through Theranos.

U.S. District Judge Edward Davila sentenced Holmes to serve 11 years in prison and she is scheduled to report to prison next month. Friday will mark Holmes’ first court appearance as a mother of two. She recently gave birth to her second child. The baby’s father is Holmes’ current boyfriend, millionaire Billy Evans, who accompanies her for every court appearance.

In court documents filed recently by her attorneys, Holmes cited her newborn baby as a reason why she should be allowed to delay when she reports to prison. Holmes argues that she deserves to remain free while appealing her conviction, a legal process that could take years to complete.

The judge is also expected to decide Friday whether he will uphold Holmes’ April deadline for going to prison.

Follow our team coverage for live updates:

11:30 a.m. — Holmes is flight risk, prosecutor says

Inside the courtroom, Prosecutor Kelly Volkar asserted that Holmes is a flight risk and should no longer be free on bond. “She has the means and the motive to flee,” Volkar said. “Ms. Holmes is set to go to jail and face a significant sentence.”

Holmes, who posted bond based on the value of her parents house, bought a one-way ticket to Mexico that she later canceled after prosecutors became aware of the planned trip. The flight was scheduled to take off just days after a federal jury found Holmes guilty of conspiracy and fraud in January of 2022.

10:46 a.m. — U.S. attorney argues Holmes should pay back millions to investors

Right now, Assistant U.S. Attorney Robert Leach is urging the judge to order Holmes to pay back millions of dollars to investors that they invested in Theranos.

“These investors here got nothing back,” Leach told the court. “The loss is the amount that they paid (Theranos). The goal of restitution is to make them whole. Our position is, it’s the total amount of investment. The purchase price of the investment.”

“We know at the end of the day, Theranos did not fail because of some extraneous reasons, (such as) put its money in Silicon Valley Bank. Theranos failed because the promises it made to its investors were simply not true,” Leach continued.

10:12 a.m. — Holmes arrives in court

Elizabeth Holmes was seen arriving at the San Jose federal court by KRON4’s Will Tran.


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