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Theranos founder Elizabeth Holmes’ prosecutor says fraudster’s case offers warning to Silicon Valley leaders

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Theranos founder Elizabeth Holmes’ prosecutor says fraudster’s case offers warning to Silicon Valley leaders

The prosecutor behind Elizabeth Holmes’ guilty verdict said the entrepreneur’s fall from Silicon Valley’s cover girl to a felon serves as a cautionary tale. 

Former federal prosecutor John Bostic played a pivotal role in putting Holmes behind bars and is cautioning other entrepreneurs against following the lead of the Theranos founder’s disgraced career. 

“The economy benefits from an active ecosystem of tech startups and investors,” Bostic, who now works as a partner at the global law firm Cooley, told Fox News Digital. 

“Investors need to approach even the most hyped investments with a dose of skepticism, and founders need to be vigilant in painting an accurate picture of their companies. That goes double in highly regulated industries like life sciences.”

CONVICTED CEO FRAUDSTER ELIZABETH HOLMES SAYS LIFE IN LOCKUP IS ‘HELL’ IN FIRST PRISON INTERVIEW 

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Elizabeth Holmes, founder of Theranos Inc., arrives at Federal Prison Camp Bryan in Bryan, Texas, May 30, 2023.  (Sergio Flores/Bloomberg via Getty Images)

Holmes swindled investors out of hundreds of millions of dollars by falsely claiming her company had invented a device that could run complex medical tests with just a single drop of blood.

In November 2022, Holmes was sentenced to 11 years in prison after being convicted of fraud and conspiracy and was ordered to pay $452 million in restitution to her victims. 

“There are things I would have done differently,” Holmes, 41, said in an interview with People. “I refused to plead guilty to crimes I did not commit. Theranos failed. But failure is not fraud.”

INMATES HOPE TO BEFRIEND THERANOS FOUNDER ELIZABETH HOLMES AHEAD OF HER ARRIVAL AT TEXAS PRISON

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Despite her conviction, Holmes maintains she is innocent and was not influenced by greed, which Bostic said is irrelevant in the eyes of the law. 

“A fraud case almost always comes down to a defendant’s intent,” Bostic said. “Even if the evidence shows that a defendant said something untrue, the prosecution’s job is only half done. They still need to prove that the defendant actually intended to deceive and cheat someone.”

Theranos founder Elizabeth Holmes arrives at a federal courthouse accompanied by partner Billy Evans, in San Jose, Calif., March 17, 2023. (Reuters/Carlos Barria)

Holmes’ trial revealed that while Theranos was not a sham, her claims were. 

“The jury heard from multiple investors who gave similar accounts of how the false things they heard from Holmes persuaded them to invest,” Bostic told Fox News Digital. “And, critically, former employees testified about the true situation at Theranos and what Holmes knew.”

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Earlier this year, a federal appeals court upheld Holmes’s conviction, dashing her hopes of being released from prison. Holmes and former business partner Ramesh “Sunny” Balwani claimed legal errors were made during their trials after the court allowed some witness testimony but denied others. 

ELIZABETH HOLMES LOSES BID TO REMAIN OUT OF PRISON DURING APPEAL

Elizabeth Holmes, founder of Theranos Inc., arrives at Federal Prison Camp Bryan in Bryan, Texas, May 30, 2023. (Sergio Flores/Bloomberg via Getty Images)

While in prison, the mother of two is permitted to visit with her partner, Billy Evans, and their two children, Holmes said. She gave birth to her oldest child shortly before her trial began and delivered her second child three months before her prison sentence began. 

“I always wanted to be a mother,” Holmes told People. “I truly did not think I would ever be convicted or found guilty.” 

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Holmes is being held at Federal Prison Camp Byran in Bryan, Texas, and is scheduled to be released March 19, 2032. Upon release, she hopes to continue working in the healthcare and technology industries. 

“It kills me to put my family through pain the way I do,” Holmes said. “But when I look back on my life, and these angels that have come into it, I can get through anything. It makes me want to fight for all of it.”

Mollie Markowitz and The Associated Press contributed to this report.

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Los Angeles, Ca

Arrest made in deadly shooting at 4th of July gathering in Compton; search for 2nd suspect continues

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Arrest made in deadly shooting at 4th of July gathering in Compton; search for 2nd suspect continues

Los Angeles County Sheriff Robert Luna gave an update Thursday on several shootings over the Fourth of July weekend that left three people dead and several others injured.

Police arrested Antoine Jones, a 50-year-old man from the Los Angeles area, who they believe is responsible for the murder of a 19-year-old woman and the attempted murder of two additional surviving female victims who were attending a large community block party in Compton.

On July 4 at approximately 11:40 p.m., deputies from the Compton station responded to an apartment complex on the 700 block of West Laurel Street following reports of multiple people being shot.

Meah Bordenave-Jenkins, a 19-year-old nursing student at the University of Nevada, Las Vegas, was killed when gunfire broke out at the party.

Meah Bordenave-Jenkins and Eric Washington are pictured in a Los Angeles Sheriff’s Department bulletin. (LASD)

Deputies located Bordenave-Jenkins and the two other women suffering from gunshot wounds outside of the apartment complex.

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“While today’s announcement represents an important step towards justice for Meah and her family, our work is very far from being over,” said LASD Sheriff Robert Luna.

The LASD is also seeking the public’s help in identifying those responsible for the murder of Eric Washington, 37, a beloved community activist and former government staffer, and the attempted murder of another surviving man injured that same night at the same party.

Washington was reportedly killed while trying to deescalate a conflict at the party, his family said. Deputies found victim Washington suffering from a gunshot wound inside the complex.

Investigators later learned that another man had also been shot at some point during the incident.

Bordenave-Jenkins and Washington both died from their injuries. The remaining victims, two women and a man, sustained non-life-threatening injuries and have been released from the hospital. They have not been identified by police.

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Detectives determined the two shootings happened moments apart at the party but appear to be separate and unrelated.

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  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration

Detectives identified Jones as the suspect responsible for Bordenave-Jenkins’ death and the attempted murder of the two surviving women. Authorities located Jones on July 14 in Los Angeles and took him into custody.

The LASD is still searching for the suspect or suspects responsible for the murder of Washington and the attempted murder of the surviving male victim.

“Although today’s arrest is significant, this investigation remains extremely active,” Luna said.

“There were hundreds of people at this gathering,” Luna said. “Somebody knows, somebody saw or somebody heard what happened.”

The LASD also announced they’re searching for a suspect in a separate shooting at a different Fourth of July gathering that occurred in the early morning of July 5.

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At approximately 12:10 a.m., Compton deputies responded to the 2100 block of North Grandee Avenue, where they located a 30-year-old victim, Thaddeus Clark, and a second victim suffering from gunshot wounds at the gathering.

Clark, a father of three, did not survive his injuries, Luna said.

The LASD is urging anyone with information about Clark’s murder and the attempted murder of the surviving victim to contact the LASD Homicide Bureau.

Although these shooting incidents occurred at gatherings less than an hour apart, investigators found no evidence that the two were connected, Luna said.

Luna also announced three suspects have been arrested in connection with a shooting in East L.A. on July 5. It happened as crowds crossed the intersection near Whittier Boulevard and Leonard Avenue during a World Cup match.

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Four people were hit by gunfire, including two men, one woman and a boy. None of the injuries were life-threatening.

The sheriff said the alleged shooter, a 15-year-old known gang member, was arrested. Two female suspects, ages 21 and 38, have been arrested in the Lancaster and Palmdale areas for their alleged roles in luring the primary victim to the location and assisting the shooting suspect in evading arrest.

They’re all facing four counts of attempted murder.

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Los Angeles, Ca

Water main break floods West Hollywood streets, traps cars

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Water main break floods West Hollywood streets, traps cars

A broken water main sent water gushing from an apartment building and turned nearby streets into rivers in West Hollywood early Thursday morning. The break was reported around 3 a.m. near Holloway Drive and Sunset Boulevard. “It’s a rupture of one of the significant mains that goes through here. West Hollywood, as it turns out, […]

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Los Angeles, Ca

Remains of murder victim identified as missing Southern California millionaire 

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Remains of murder victim identified as missing Southern California millionaire 

After more than four decades, the remains of a woman who was found buried in the mountains of Riverside County were identified as a multi-millionaire who went missing in 1981.

The body of Thelma Gaston was discovered by a person gathering firewood in a mountainous area near Sugar Loaf Mountain and the Pinyon Crest community on Nov. 28, 1981.

After experiencing a series of heartbreaking life events, including the death of her husband and her 32-year-old son in the same year in 1957, Gaston continued forging ahead, focusing on her business of buying repossessed properties and selling them. 

By 1980, she had amassed a fortune estimated to be over $20 million, SFGATE reported.

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On June 28, 1981, a note was left on the front door of her home near Century City, saying she was out searching for her cat. However, she never returned home and her loved ones did not hear from her.

By then, Gaston was 80 years old. As Los Angeles Police Department detectives investigated her disappearance, they discovered a younger man, Lawrence Remsen, then 39, had recently entered her life and was the woman’s romantic companion, SFGATE reported.

At one point, the woman’s friends said Gaston had wondered about Remsen’s motives in being with her.

Police eventually found letters and documents reportedly signed by Gaston that gave Remsen power of attorney. Another letter allegedly written by the woman claimed she had run away “to have some fun in life.” However, her friends said the move was completely out of character.

Detectives later confirmed the letters were certified with a stolen notary stamp and her signatures were believed to be forged. 

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Remsen had tried selling some of Gaston’s properties and attempted to withdraw more than $100,000 from her bank accounts. Remsen eventually fled the Southern California area.

A few months later, he was arrested by border agents when he tried to enter the U.S. from Mexico. He was charged with Gaston’s murder even though the woman’s body had not been found.

During a trial hearing, Remsen later claimed he found the woman dead of natural causes in her home and, attempting to take her fortune, had disposed of her body in the ocean.

The judge disagreed and later ruled that Remsen had killed the woman “intentionally and with malice.” He was convicted of murder and sentenced to life in prison.

Gaston’s body was later discovered buried in a shallow grave in the mountains. However, due to the poor condition of the remains, investigators were unable to narrow down an identity.

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A breakthrough occurred in 2022 when the Riverside County Sheriff’s Coroner’s Bureau received new funding to reexamine long-standing unidentified cases. 

“Combined with significant advances in forensic science, this funding opened new avenues for identification,” the sheriff’s office said.

In May 2026, utilizing investigative genetic genealogy and dental records, the remains were positively identified as Gaston’s.

“The Riverside Sheriff’s Coroner’s Bureau extends its sincere appreciation to everyone whose dedication, expertise, and perseverance made this identification possible,” officials said in a statement. “Together, these efforts have ensured that Ms. Gaston has her name—and her story—returned to her.”

Remsen, who is now 83 years old, continues serving his life sentence at the California Institution for Men in Chino.

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