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Elizabeth Holmes sentenced to more than 11 years in prison for fraud | CNN Business

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Elizabeth Holmes sentenced to more than 11 years in prison for fraud | CNN Business



CNN
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Elizabeth Holmes was sentenced to greater than 11 years in jail on Friday following her conviction in January for defrauding buyers whereas working the failed blood testing startup Theranos.

Decide Edward Davila imposed a sentence of 11 years and three months in jail, with one other three years of supervision after Holmes is launched. The sentence additionally features a wonderful of $400, or $100 for every depend of fraud. Restitution might be set at a later date. Holmes was ordered to show herself into custody on April 27, 2023. She is anticipated to attraction her conviction.

Holmes, who was discovered responsible in January on 4 fees of defrauding buyers, confronted as much as 20 years in jail in addition to a wonderful of $250,000 plus restitution for every depend.

Legal professionals for the federal government requested for a 15-year jail time period, in addition to probation and restitution, whereas Holmes’ probation officer pushed for a nine-year time period. Holmes’ protection group requested Davila, who presided over her case, to condemn her to as much as 18 months of incarceration adopted by probation and group service.

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Earlier than the sentencing was introduced, a tearful Holmes spoke to the court docket in San Jose, California. “I cherished Theranos. It was my life’s work,” she stated. “The individuals I attempted to become involved with Theranos had been the individuals I cherished and revered essentially the most. I’m devastated by my failings.”

She additionally apologized to the workers, buyers and sufferers of Theranos. “I’m so, so sorry. I gave the whole lot I needed to construct our firm and to save lots of our firm,” she stated. “I remorse my failings with each cell in my physique.”

“The decide imposed a strong sentence that confirms that fraud can’t masquerade as innovation in Silicon Valley,” stated George Demos, a former SEC enforcement lawyer and adjunct legislation professor at UC Davis. “When given the chance to talk, Elizabeth Holmes made an announcement that she takes duty for Theranos however didn’t say she takes duty for the fraud.”

In arguments earlier than the decide on Friday over her sentence, Kevin Downey, certainly one of Holmes’ legal professionals, stated that not like different defendants in company fraud circumstances, the Theranos founder didn’t categorical greed by cashing out shares or spending cash on “yachts and planes.” As an alternative, the cash was “used to construct medical expertise.”

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Federal prosecutor Jeffrey Schenk identified that Holmes did acquire fame, admiration, and a life-style from the fraud, even when she didn’t make monetary good points. “These nonetheless are advantages she’s receiving,” he stated.

Friday’s sentencing listening to caps off Holmes’ gorgeous downfall. As soon as hailed as a tech business icon for her firm’s guarantees to check for a spread of circumstances with just some drops of blood, she is now the uncommon tech founder to be convicted and face jail time for her firm’s missteps.

Holmes, now 38, began Theranos in 2003 on the age of 19 and shortly thereafter dropped out of Stanford College to pursue the corporate full-time. After a decade underneath the radar, Holmes started courting the press with claims that Theranos had invented expertise that might precisely and reliably take a look at for a spread of circumstances utilizing just some drops of blood taken from a finger prick.

Theranos raised $945 million from a formidable checklist of buyers, together with media mogul Rupert Murdoch, Oracle founder Larry Ellison, Walmart’s Walton household and the billionaire household of former Secretary of Schooling Betsy DeVos. At its peak, Theranos was valued at $9 billion, making Holmes a billionaire on paper. She was lauded on journal covers, regularly carrying a signature black turtleneck that invited comparisons to late Apple CEO Steve Jobs. (She has not worn that look within the courtroom.)

The corporate started to unravel after a Wall Road Journal investigation in 2015 discovered the corporate had solely ever carried out roughly a dozen of the a whole bunch of assessments it supplied utilizing its proprietary blood testing machine, and with questionable accuracy. As an alternative, Theranos was counting on third-party manufactured units from conventional blood testing firms.

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In 2016, Theranos voided two years of blood take a look at outcomes. In 2018, Holmes and Theranos settled “huge fraud” fees with the Securities and Alternate Fee, however didn’t admit to or deny any of the allegations as a part of the deal. Theranos dissolved quickly after.

In her trial, Holmes alleged she was within the midst of a decade-long abusive relationship together with her then-boyfriend and Theranos COO Ramesh “Sunny” Balwani whereas working the corporate. Balwani, she alleged, tried to regulate almost each side of her life, together with disciplining her consuming, her voice and her picture, and isolating her from others. (Balwani’s attorneys denied her claims.)

In July, Balwani was discovered responsible on all 12 fees in a separate trial and faces the identical potential most jail time as her. Balwani is scheduled to be sentenced on December 7.

“The consequences of Holmes and Balwani’s fraudulent conduct had been far-reaching and extreme,” federal prosecutors wrote in a November court docket submitting concerning Holmes’ sentencing. “Dozens of buyers misplaced over $700 million and quite a few sufferers obtained unreliable or wholly inaccurate medical info from Theranos’ flawed assessments, inserting these sufferers’ well being at critical danger.”

Greater than 100 individuals wrote letters in assist of Holmes to Davila, asking for leniency in her sentencing. The checklist consists of Holmes’ associate, Billy Evans, many members of Holmes’ and Evans’ households, early Theranos investor Tim Draper, and Sen. Cory Booker. Booker described assembly her at a dinner years earlier than she was charged and bonding over the truth that they had been each vegans with nothing to eat however a bag of almonds, which they shared.

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“I nonetheless imagine that she holds onto the hope that she will be able to contribute to the lives of others, and that she will be able to, regardless of errors, make the world a greater place,” Booker wrote, noting that he continues to think about her a buddy.

Forward of the listening to, there have been additionally questions over how Holmes’ sentencing may very well be sophisticated by developments in her life after stepping down from Theranos. Holmes and her associate, Evans, who met in 2017, have a younger son. Holmes can be pregnant, as confirmed by current court docket filings and her most up-to-date court docket look in mid-October.

Mark MacDougall, a white-collar protection lawyer and former federal prosecutor, advised CNN Enterprise earlier than the listening to that the truth that Holmes has a younger youngster may influence how she is sentenced.

“I don’t know the way it can’t, simply because judges are human,” he stated.

MacDougall additionally stated he doesn’t see what an extended jail sentence accomplishes. “Elizabeth Holmes isn’t going to run a giant firm once more,” he stated. “She’s by no means going to be ready to have one thing like this occur once more.”

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Live news: Singapore upgrades economic forecasts after growth outpaces expectations

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Live news: Singapore upgrades economic forecasts after growth outpaces expectations

Australian logistics company WiseTech has cut its revenue and profit forecasts after a series of allegations about its founder and chief executive Richard White disrupted its development and product release plans. 

WiseTech stock fell 14 per cent on Friday after the company cut its revenue forecast for the current financial year to between A$1.2bn ($780mn) and A$1.3bn from A$1.3bn-A$1.35bn.

Earnings before interest, taxation, depreciation and amortisation is now forecast to be between A$600mn and A$660mn, down from as high as A$700mn previously. 

White, the 69-year old co-founder, has faced accusations of bullying and the non-disclosure of relationships with employees. The company released an independent report into the accusations on Friday that found that there had been “no impropriety”.

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Smollett's attorneys praise overturn of actor's conviction

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Smollett's attorneys praise overturn of actor's conviction

It was a decision that Jussie Smollett’s lead attorney said was no surprise, but it still took nearly six years to arrive at Thursday’s conclusion.

The Illinois Supreme court ruled Thursday that the case against the “Empire” actor never should have been brought in the first place, with the main argument centering around Smollett striking a deal with the Cook County State’s Attorney’s Office to drop charges in 2019.

“This was a vindictive persecution,” said Nenye Uche, Smollett’s lead attorney. “This was not a prosecution.”

Smollett’s attorneys had argued that a deal existed between their client and Cook County States Attorney Kim Foxx’s office when initial charges were dropped in the case in March 2019, three weeks after the actor had officially been charged and accused with staging a racist, homophobic attack in Chicago’s Streeterville neighborhood earlier that winter.

According to defense attorneys, the agreement held that there would be no prosecution if Smollett did community service and paid a $10,000 fine. However, they said the deal was upended by public reaction to the plea bargain, which Foxx said is common in misdemeanor cases like Smollett’s.

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“You almost never see these cases end up in a courtroom,” she said.

A special prosecutor was later hired in the case and ultimately brought new charges against Smollett, which resulted in a conviction and a prison sentence of 150 days.

Smollett’s attorneys said everyone from the office of the Special Prosecutor on down should have known better than to pursue the new charges, arguing that a contract existed by way of that plea agreement, and that trying the case exposed their client to double jeopardy.

“None of us wants that to happen to us, to have a deal and they take that agreement back,” said attorney Shay Allen.

In their 32-page ruling, the Illinois high court agreed with that assessment. In the 5-0 majority opinion penned by Justice Elizabeth Rochford, the justices acknowledged that many in the public thought the initial deal clearing Smollett was unjust.

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“What would be more unjust than the resolution of any one criminal case would be a holding from this court that the State was not bound to honor agreements upon which people have detrimentally relied,” she said.

But while appointed special prosecutor Dan Webb said he disagreed with the Supreme Court’s finding, faulting its factual and legal reasoning, Uche called the ruling a victory, especially in the age of social media.

“The big challenge is holding the line for the rule of law,” Uche said. “That’s exactly what the court did today.”

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ICC issues arrest warrant for Israeli PM Benjamin Netanyahu

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ICC issues arrest warrant for Israeli PM Benjamin Netanyahu

The International Criminal Court has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former defence minister Yoav Gallant “for crimes against humanity and war crimes”.

The move is a dramatic escalation of legal proceedings over Israel’s offensive in Gaza, and marks the first time that the court, which was set up in 2002, has issued a warrant for a western-backed leader.

It means that the ICC’s 124 member states — which include most European and Latin American countries and many in Africa and Asia — would be obliged to arrest Netanyahu and Gallant if they entered their territory. But the court has no means of enforcing the warrants if they do not.

The warrants, however, will reinforce the sense that Israel has become increasingly isolated internationally over the conduct of its war against Hamas in the besieged Gaza strip.

Announcing the decision on Thursday, the court said there were “reasonable grounds” to believe that Netanyahu and Gallant bear criminal responsibility for “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts”.

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It said there were reasonable grounds to believe the pair bear criminal responsibility “for the war crime of intentionally directing an attack against the civilian population”, and had “intentionally and knowingly deprived” Gaza’s civilians of food, water, medical supplies, fuel and electricity.

The court said it had unanimously decided to reject Israel’s appeal against the ICC’s jurisdiction. Neither Israel nor its largest ally the US are members of the court.

The Israeli prime minister’s office branded the warrants “antisemitic” and said Israel “rejects with disgust the absurd and false actions and charges against it”, calling the ICC “a biased and discriminatory political body”.

“No anti-Israel resolution will prevent the state of Israel from protecting its citizens,” it said. “Prime Minister Benjamin Netanyahu will not give in to pressure, will not flinch and will not retreat until all the war goals set by Israel . . . are achieved.”

Palestinian officials welcomed the ICC’s announcement. Husam Zomlot, Palestinian ambassador to the UK, said the warrants were “not only a step towards accountability and justice in Palestine but also a step to restore the credibility of the rules-based international order”. Hamas called on the court to expand the warrants to other Israeli officials.

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Yoav Gallant at an observation post overseeing southern Lebanon last month © Ariel Hermoni/GPO/dpa
Mohammed Deif
The ICC has also issued an arrest warrant for Mohammed Deif, who Israel in August said it had killed © Israel Defense Forces

The ICC also issued an arrest warrant for Hamas leader Mohammed Deif for crimes against humanity and war crimes over the militant group’s October 7 2023 attack on Israel that triggered the war in Gaza. Israel said in August it had killed Deif in an air strike in Gaza a month earlier.

In the US, figures from both the Biden White House and incoming Republican administration condemned the warrants. The White House said it “fundamentally rejects” the ICC’s decision.

“We remain deeply concerned by the prosecutor’s rush to seek arrest warrants and the troubling process errors that led to this decision,” said the US National Security Council.

Mike Waltz, who will serve as national security adviser when Donald Trump’s administration takes office next year, said the ICC had “no credibility”. “You can expect a strong response to the antisemitic bias of the ICC and UN come January,” he wrote on X.

Senator Lindsey Graham, a close Trump ally, called for fresh sanctions against the court. Trump’s previous administration imposed sanctions on top ICC officials, including then-prosecutor Fatou Bensouda, over its probe into allegations of war crimes in Afghanistan. The Biden administration later lifted them.

“The court is a dangerous joke. It is now time for the US Senate to act and sanction this irresponsible body,” Graham said.

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Republicans will control all three branches of government next year, raising the likelihood that the US will bring in new sanctions against the ICC.

However, the EU’s top diplomat, Josep Borrell, said the warrants were not political, and that the court’s decision should be respected and implemented.

The Dutch foreign minister, Caspar Veldkamp, said the Netherlands “will act on the arrest warrants”, but other European countries struck a more equivocal line.

A spokesperson for UK Prime Minister Keir Starmer said “we respect the independence of the International Criminal Court” and added: “There is no moral equivalence between Israel, a democracy, and Hamas and Lebanese Hizbollah, which are terrorist organisations.”

ICC prosecutor Karim Khan originally sought the warrants in May for Netanyahu, Gallant, Deif and two other Hamas leaders, Yahya Sinwar and Ismail Haniyeh, both of whom Israel has since killed.

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The ICC’s move comes as Israel faces intense criticism over the toll of its offensive in Gaza.

The hostilities began when Hamas militants stormed into Israel in October 2023, rampaging through communities, killing 1,200 people, according to Israeli officials, and taking another 250 hostage.

In response, Israel launched a ferocious assault on Gaza, with Gallant announcing a “complete siege” of the strip. Israel’s offensive has killed almost 44,000 people, according to Palestinian officials, displaced 1.9mn of the enclave’s 2.3mn inhabitants and reduced most of it to rubble.

The UN and aid agencies have criticised Israel for restricting the delivery of aid, while warning of the threat of famine and disease.

The fighting has also triggered legal proceedings at the International Court of Justice, which deals with cases against countries.

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That court, the highest in the UN system, is hearing a case brought by South Africa accusing Israel of genocide against the Palestinians in Gaza, which Israel has vehemently denied.

Additional reporting by Anna Gross

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