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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

L.A. Jewish institution among targets of foiled terrorist attack, U.S. officials say

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L.A. Jewish institution among targets of foiled terrorist attack, U.S. officials say

A Jewish institution in Los Angeles was among the locations targeted in a recently foiled terrorism plot, U.S. Attorney for the Southern District of New York Jay Clayton announced this week.

The thwarted terrorist attacks were the result of the recent arrest of Mohammad Baqer Saad Dawood Al-Saadi, an Iraqi national and senior member of Kata’ib Hizballah, U.S. officials said.

“Mohammad Baqer Saad Dawood Al-Saadi, a commander for the terrorist organization, Kata’ib Hizballah, faces serious charges for his role in numerous attacks against U.S. interests across the globe, including his efforts to kill on U.S. soil,” Clayton said. “As alleged, for years, Al-Saadi committed himself to furthering the terrorist goals of Kata’ib Hizballah and the IRGC, two terrorist organizations dedicated to harming the United States and its allies.”

Al-Saadi recently attempted to carry out attacks in the U.S., officials said, including attacks at Jewish cultural places of interest in New York, Los Angeles and Scottsdale, Ariz.

“Al-Saadi attempted to disrupt American society through intimidation and violence,” a press release from the U.S. Attorney’s Office reads. “… Those who engage in or support terrorism against Americans and on U.S. soil should take note:  the whole of the federal government is committed to dismantling terrorist organizations and bringing their members to justice.”

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In a three-month period, Al-Saadi allegedly directed 18 terrorist attacks throughout Europe, including bombings, arson, and assaults targeting American citizens and points of interest. Prior to his arrest, national security officials say he was planning similar attacks on U.S. soil. Assistant Attorney General for National Security John A. Eisenberg said that  Al-Saadi “presented a serious threat to our national security.”

The European attacks included the bombing of the Bank of New York Mellon, an American bank, in Amsterdam on March 15. On April 29, two Jewish men, one of whom was a dual U.S.-British citizen, were stabbed and seriously injured in London.

In 2020, Al-Saadi took to social media, calling for others to attack and kill Americans in retribution for the deaths of Iranian military officer Qasem Soleimani and Iraqi military commander Abu Mahdi al-Muhandis, U.S. officials said. In more recent months, Al-Saadi allegedly used social media to encourage the killing of Americans and Jews to further the terrorist goals of Kata’ib Hizballah and the Islamic Revolutionary Guard Corps.

“In or about February 2026, for example, AL-SAADI posted on one of his social media accounts a message in Arabic, which read in part, ‘Do not abandon the blood of your Imam of the time, oh Shiites of Iraq. Kill everyone who supports America and Israel. Do not leave any of them remaining. Civil and military targets, as well as voices of discord, kill them everywhere.’” U.S. officials said.

NYPD Commissioner Jessica S. Tisch confirmed that one of the U.S. targets was a Manhattan synagogue. On April 3, Al-Saadi allegedly spoke to an undercover law enforcement officer whom Al-Saadi believed could carry out attacks in the U.S. That same day, Al-Saadi allegedly texted the undercover officers photographs and maps showing the exact location of a prominent Jewish synagogue in New York City. 

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Officials have not said what specific locations in L.A. and Arizona were targeted by the terrorist group.

Al-Saadi now faces numerous charges for these crimes in U.S. court. If convicted, he could be sentenced to life in prison.

The case is under investigation by the FBI’s New York Joint Terrorism Task Force, which is comprised of investigators and analysts from the FBI, the NYPD, the FBI Washington Field Office, Counterterrorism Division, and more than 50 other federal, state, and local agencies. Investigators also received help from the Department of Justice’s National Security Division, Counterterrorism Section, the Office of International Affairs of the Justice Department’s Criminal Division, and U.S. Customs and Border Protection.

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Los Angeles, Ca

L.A. police shoot knife-wielding man during response to assault call 

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L.A. police shoot knife-wielding man during response to assault call 

A man armed with a knife was shot by L.A. police officers responding to an assault with a deadly weapon call overnight, authorities said. 

According to the Los Angeles Police Department, officers with the Hollenbeck Division responded to an apartment complex in the 3000 block of Glenn Avenue in Boyle Heights at 1:45 a.m. Saturday after callers reported a male suspect was armed with a knife and had just assaulted someone in the complex. 

Arriving officers found the suspect in front of the residence, but he did not comply with officers’ commands to drop the weapon. He then advanced toward the officers and an officer-involved shooting occurred, LAPD confirmed.

A man armed with a knife was shot by L.A. police officers responding to an assault with a deadly weapon call overnight, authorities said. Video obtained by KTLA shows the man being loaded into an ambulance. May 2026. (ANG)

“The suspect was struck by gunfire and remained non-compliant,” the LAPD Public Information Officer said on X early Saturday morning. “Officers deployed a 40mm foam round and ultimately took the suspect into custody.”

Video obtained by KTLA shows the man being loaded into an ambulance and taken to a hospital; officials said he was transported in stable condition, adding that his knife was recovered at the scene and booked as evidence. 

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No officers or community members were injured during the incident. The man’s name was not released. 

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Los Angeles, Ca

Rip tides, high surf forecast for Los Angeles beaches this weekend

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Rip tides, high surf forecast for Los Angeles beaches this weekend

Dangerous rip currents and high surf are forecast for Los Angeles County beaches, including the Malibu Coast this weekend.

The National Weather Service has issued a hazardous beach statement, warning of the potentially deadly beach conditions. The dangerous conditions are forecast to last from Saturday evening to Monday morning.

“There is an increased risk of ocean drowning,” the NWS forecast reads. “Rip currents can pull swimmers and surfers out to sea. Waves can wash people off beaches and rocks, and capsize small boats nearshore.”

  • Rip Currents

Minor Beach erosion and coastal flooding is possible through the weekend. The flooding is most likely to occur during evening high tides from 7 p.m. to 11 p.m.

Beachgoers are advised to stay out of the water and remain near lifeguard towers. Jetties and tidepools are also especially dangerous during the weekend forecast.

“Rock jetties can be deadly in such conditions, stay off the rocks,” the NWS forecast reads.

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Similar hazardous beach conditions are also in the forecast for Santa Barbara County. A high surf advisory is also in effect for Santa Barbara and San Luis Obispo counties this weekend, where 10 to 15-foot waves will be possible.

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