Corrupt CEO Elizabeth Holmes gets more than 11 years for Theranos scam

Holmes appeared in federal court for sentencing after being convicted of four counts of fraud for allegedly engaging in a multimillion-dollar scheme to defraud investors in her company Theranos. (Getty)
Holmes appeared in federal court for sentencing after being convicted of four counts of fraud for allegedly engaging in a multimillion-dollar scheme to defraud investors in her company Theranos. (Getty)
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Updated 19 November 2022

Corrupt CEO Elizabeth Holmes gets more than 11 years for Theranos scam

Holmes appeared in federal court for sentencing after being convicted of four counts of fraud for allegedly engaging in a multim
  • . Holmes’ sentencing revives the debate on whether or not women executives are just as corrupt as men

SAN JOSE, California: Disgraced Theranos CEO Elizabeth Holmes was sentenced Friday to more than 11 years in prison for duping investors in the failed startup that promised to revolutionize blood testing but instead made her a symbol of Silicon Valley ambition that veered into deceit.

Holmes’ sentencing revives the debate on whether or not women executives are just as corrupt as men.

The idea of women possibly being less corrupt than men gained prominence in the early 2000s. In 2011, the World Bank published a study, which showed that in countries with a greater proportion of female legislators, social workers were less likely to demand bribes.

This is not because women are more likely to confront arrangements or refuse to accept bribes, the study indicated. It is because women are less likely to be members of existing patronage networks, which are predominantly male.

Similarly, women have less opportunity to express or pursue corruption considering that there are fewer women than men in positions of power. Given such power, women may indeed be equally corrupt as men.

Therefore, women are not necessarily less corrupt than men, but are perceived to be less corrupt for a number of reasons.

READ MORE: Why female CEOs can be just as corrupt as men

The sentence imposed by US District Judge Edward Davila was shorter than the 15-year penalty requested by federal prosecutors but far tougher than the leniency her legal team sought for the mother of a year-old son with another child on the way.

Holmes, 38, faced a maximum of 20 years in prison. Her legal team requested no more than 18 months, preferably served in home confinement.

“This is a very heavy sentence,” said Rachel Fiset, a defense lawyer who has also been involved in health care cases.

Holmes, who was CEO throughout the company’s turbulent 15-year history, was convicted in January in the scheme, which revolved around the company’s claims to have developed a medical device that could detect a multitude of diseases and conditions from a few drops of blood. But the technology never worked, and the claims were false.

Theranos was dashed “by misrepresentations, hubris and just plain lies,” the judge said.

“This case is so troubling on so many levels,” Davila said. “What was it that caused Ms. Holmes to make the decisions she did? Was there a loss of a moral compass?”

Holmes’ meteoric rise once landed her on the covers of business magazines that hailed her as the next Steve Jobs. And her deception was persuasive enough to draw in a list of sophisticated investors, including software magnate Larry Ellison, media mogul Rupert Murdoch and the Walton family behind Walmart.

She sobbed as she told the judge she accepted responsibility for her actions.

“I regret my failings with every cell of my body,” Holmes said. She promised Davila she would devote the remainder of her life to trying to help others.

Holmes’ attorney, Kevin Downey, indicated she would appeal the sentence. Holmes and her family left the courthouse by a side entrance and managed to evade reporters and photographers.

Before handing down the sentence, Davila reflected on Silicon Valley’s transition from an agricultural hub populated by farmers and ranchers to a “crucible of innovation” brimming with bright-eyed entrepreneurs dreaming of changing the world.

READ MORE: Why female CEOs can be just as corrupt as men

Recalling the humble beginnings of technology pioneer Hewlett-Packard in a small garage in Palo Alto — the same city where Theranos was based — he spoke wistfully of “honest, hard work.”

“That, I would hope, will be the legacy and continuation of this valley,” the judge said.

Amanda Kramer, a former federal prosecutor who is now a defense attorney, described the sentence as “the equivalent of neon, flashing billboard” offering “a reminder the long-term consequences of fraud far outweigh any short-term gains.”

The sentencing in the same San Jose courtroom where Holmes was convicted on four counts of investor fraud and conspiracy marked another climactic moment in a saga that has been dissected in an HBO documentary and an award-winning Hulu series.

Her lawyers argued that Holmes was a well-meaning entrepreneur who is now a devoted mother. Their viewpoints were supported by more than 130 letters submitted by family, friends and former colleagues praising Holmes.

Davila suggested that the letters might have struck a different tone had the writers seen and heard all the evidence shown to the jury.

Prosecutors also wanted Holmes to pay $804 million in restitution — an amount that covers most of the nearly $1 billion that she raised from investors. But the judge left that question for a future hearing that has not been scheduled.

While wooing investors, Holmes leveraged a high-powered Theranos board that included former Defense Secretary James Mattis, who testified against her during her trial, and two former secretaries of state, Henry Kissinger and the late George Shultz, whose son, Alexander submitted a statement blasting Holmes for concocting a scheme that played Shultz “for the fool.”

Alexander Shultz made a brief appearance Friday to lambaste her for terrorizing his son, Tyler, a former Theranos employee turned whistleblower who helped The Wall Street Journal expose the flaws in the company’s blood-testing technology.

Before the first in a series of Journal articles appeared in October 2015, Alexander Shultz said Holmes hired private investigators to follow Tyler. The surveillance made Tyler so fearful that Alexander said his son began sleeping in his bed with a knife.

The judge gave Holmes more than five months of freedom before she must report to prison on April 27 — a window of time that should enable her to give birth to her second child before she is incarcerated. She gave birth to a son shortly before her trial started last year.

If Holmes’ pregnancy had a role in determining her sentence, the decision could prove controversial. A 2019 study found that more than 1,000 pregnant women entered federal or state prisons over a 12-month study period; 753 of them gave birth in custody.

According to a 2016 survey by the Bureau of Justice Statistics, more than half of women entering federal prison — 58 percent — reported being mothers of minor children.

READ MORE: Why female CEOs can be just as corrupt as men

Kramer said it seemed clear that Davila did not allow the pregnancy to sway his judgment. His sentence “was a lesson about justice being blind, whether you are woman, a mother, a powerful figure, you are still going to be treated equally under the law.”

Federal prosecutor Robert Leach described the Theranos scam as one of the most egregious white-collar crimes ever committed in Silicon Valley. In a scathing 46-page memo, Leach urged the judge to send a message to curb the hubris and hyperbole unleashed by the tech boom of the last 30 years.

Even though Holmes was acquitted on four counts of fraud and conspiracy tied to patients who took Theranos blood tests, Leach also asked the judge to factor in the health threats posed by Holmes’ conduct.

Evidence submitted during her trial showed the tests produced wildly unreliable results that could have steered patients toward the wrong treatments.

Holmes lawyers painted her as a selfless visionary who spent 14 years trying to revolutionize health care. They asserted that Holmes never stopped trying to perfect the technology until Theranos collapsed in 2018.

They also pointed out that Holmes never sold any of her Theranos shares — a stake valued at $4.5 billion in 2014. “Where did all the money go? To building technology,” Downey said.

In court documents, Downey also asked Davila to consider the alleged sexual and emotional abuse Holmes suffered while she was involved romantically with Ramesh “Sunny” Balwani, who became a Theranos investor, top executive and eventually an accomplice in her crimes.

Balwani, 57, is scheduled to be sentenced Dec. 7 after being convicted in a July trial on 12 counts of fraud and conspiracy.


Protests over China’s COVID-19 controls spread across country

Protests over China’s COVID-19 controls spread across country
Updated 6 min 14 sec ago

Protests over China’s COVID-19 controls spread across country

Protests over China’s COVID-19 controls spread across country
  • President Xi Jinping’s government faces mounting anger at its ‘zero-COVID’ policy
  • The ruling Communist Party faces growing complaints about the economic and human cost

BEIJING: Protests against China’s pervasive anti-virus controls that have confined millions of people to their homes spread to Shanghai and other cities after complaints they might have worsened the death toll in an apartment fire in the northwest.
Shanghai police used pepper spray against about 300 protesters, according to a witness. They gathered Saturday night to mourn the deaths of at least 10 people in an apartment fire last week in Urumqi in the Xinjiang region in the northwest.
Videos posted on social media that said they were filmed in Nanjing in the east, Guangzhou in the south and at least five other cities showed protesters tussling with police in white protective suits or dismantling barricades used to seal off neighborhoods. Witnesses said a protest occurred in Urumqi, but The Associated Press was unable to confirm details of other videos.
President Xi Jinping’s government faces mounting anger at its “zero-COVID” policy that has shut down access to areas throughout China in an attempt to isolate every case at a time when other governments are easing controls and trying to live with the virus.
That has kept China’s infection rate lower than the United States and other countries. But the ruling Communist Party faces growing complaints about the economic and human cost as businesses close and families are isolated for weeks with limited access to food and medicine.
Some protesters were shown in videos shouting for Xi to step down or the ruling party to give up power.
Party leaders promised last month to make restrictions less disruptive by easing quarantine and other rules but said they were sticking to “zero-COVID.” Meanwhile, an upsurge in infections that pushed daily cases above 30,000 for the first time has led local authorities to impose restrictions residents complain exceed what is allowed by the national government.
The fire deaths in Urumqi triggered an outpouring of angry questions online about whether firefighters who needed three hours to extinguish the blaze or victims trying to escape might have been obstructed by locked doors or other controls. Authorities denied that, but the disaster became a focal point for public anger about anti-disease restrictions, ruling party propaganda and censorship.
In Shanghai, protesters gathered at Middle Urumqi Road at midnight with flowers, candles and signs reading “Urumqi, November 24, those who died rest in peace,” according to a participant who would give only his family name, Zhao.
Zhao said one of his friends was beaten by police and two were pepper-sprayed. He said police stomped on his feet as he tried to stop them from taking his friend away. He lost his shoes and left barefoot.
According to Zhao, protesters yelled slogans including “Xi Jinping, step down, Communist Party, step down,” “Unlock Xinjiang, unlock China,” “do not want PCR (tests), want freedom” and “press freedom.”
Around 100 police stood in lines to prevent protesters from gathering or leaving, Zhao said. He said buses with more police arrived later.
Another protester, who gave only his family name, Xu, said there was a larger crowd of thousands of demonstrators, but police stood in the road and let them pass on the sidewalk.
Internet users posted videos and accounts on Chinese and foreign social media showing protests in Shanghai, Nanjing, Chengdu and Chongqing in the southwest and Urumqi and Korla in Xinjiang.
A video that said it was shot in Urumqi showed protesters chanting, “Remove the Communist Party! Remove Xi Jinping!”
Protests in Xinjiang are especially risky following a security crackdown against Uyghurs and other mostly Muslim ethnic minorities that has included mass detentions.
Most protesters in the videos were members of China’s dominant Han ethnic group. A Uyghur woman in Urumqi said Uyghurs were too scared to take to the streets.


Trump faulted for dinner with white nationalist, rapper Ye

Trump faulted for dinner with white nationalist, rapper Ye
Updated 27 November 2022

Trump faulted for dinner with white nationalist, rapper Ye

Trump faulted for dinner with white nationalist, rapper Ye

NEW YORK: Former President Donald Trump is renewing attention to his long history of turning a blind eye to bigotry after dining with a Holocaust-denying white nationalist and the rapper formerly known as Kanye West just days into his third campaign for the White House.
Trump had dinner Tuesday at his Mar-a-Lago club with West, who is now known as Ye, as well as Nick Fuentes, a far-right activist who has used his online platform to spew antisemitic and white nationalist rhetoric.
Ye, who says he, too, is running for president in 2024, has made his own series of antisemitic comments in recent weeks, leading to his suspension from social media platforms, his talent agency dropping him and companies like Adidas cutting ties with him. The sportswear manufacturer has also launched an investigation into his conduct.
In a statement from the White House, spokesman Andrew Bates said: “Bigotry, hate, and antisemitism have absolutely no place in America — including at Mar-A-Lago. Holocaust denial is repugnant and dangerous, and it must be forcefully condemned.”
Trump, in a series of statements Friday, said he had “never met and knew nothing about” Fuentes before he arrived with Ye at his club. But Trump also did not acknowledge Fuentes’ long history of racist and antisemitic remarks, nor did he denounce either man’s defamatory statements.
Trump wrote of Ye on his social media platform that “we got along great, he expressed no anti-Semitism, & I appreciated all of the nice things he said about me on ‘Tucker Carlson.’” He added, “Why wouldn’t I agree to meet?”
The former president has a long history of failing to unequivocally condemn hate speech. During his 2016 campaign, Trump waffled when asked to denounce the KKK after he was endorsed by the group’s former leader, saying in a televised interview that he didn’t “know anything about David Duke.” In 2017, in the aftermath of the deadly white supremacist protests in Charlottesville, Virginia, Trump was widely criticized for saying there was “blame on both sides” for the violence. And his rallies frequently feature inflammatory rhetoric from figures like US Rep. Marjorie Taylor Greene, R-Ga., who spoke earlier this year at a far-right conference organized by Fuentes.
The latest episode, coming just one week after Trump launched his third run for the Republican nomination, also underscored how loosely controlled access to the former president remained, particularly without a traditional campaign operation in place.
Trump’s Mar-a-Lago club came under intense scrutiny amid revelations that Trump was storing hundreds of documents with classified markings there — sparking a federal investigation. But the club — and the people it gave access to Trump — had long been a source of consternation among former White House aides.
Mar-a-Lago is not only Trump’s home, but also a private club and event space. Paid members and their guests dine alongside him and often mingle with him; members of the public can book weddings, fundraisers and other events, and Trump often drops by.
Ye first shared details of the dinner in a video he posted to his Twitter account Thursday. Ye said he had traveled to Florida to ask Trump to be his 2024 running mate, and that the meeting had grown heated, with Trump “perturbed” by his request and Ye angered by Trump’s criticism of his estranged wife, Kim Kardashian.
“When Trump started basically screaming at me at the table telling me I was gonna lose. I mean, has that ever worked for anyone in history, telling Ye that I’m going to lose?” Ye asked in the video. “You’re talking to Ye!“
Ye also said Trump was “really impressed with Nick Fuentes,” whom he described as “actually a loyalist” and said he’d asked Trump, “Why when you had the chance did you not free the January 6th-ers?” referring to the defendants who were alleged to have participated in the deadly insurrection at the US Capitol on Jan. 6, 2021.
Trump released a series of statements Friday trying to explain the circumstances of the meeting.
“Kanye West very much wanted to visit Mar-a-Lago. Our dinner meeting was intended to be Kanye and me only, but he arrived with a guest whom I had never met and knew nothing about,” Trump said in his first statement released by his campaign.
Not long after, Trump took to his social media network to say that Ye and “three of his friends, whom I knew nothing about” had “unexpectedly showed up” at his club.
“We had dinner on Tuesday evening with many members present on the back patio. The dinner was quick and uneventful. They then left for the airport,” he wrote.
Hours later he again posted, saying he had told Ye that he “should definitely not run for President,” and that “any voters you may have should vote for TRUMP.”
“Anyway, we got along great, he expressed no anti-Semitism, & I appreciated all of the nice things he said about me on ‘Tucker Carlson.’” he added. “Why wouldn’t I agree to meet? Also, I didn’t know Nick Fuentes.”
Fuentes, meanwhile, said after the trip that, while he couldn’t rule out that Trump had heard of him, “I don’t think he knew that I was me at the dinner.”
“I didn’t mean for my statements and my whole background to sort of become a public relations problem for the president,” he added on his show.
The meeting drew immediate criticism from Trump critics as well as some supporters, including David Friedman, who served as Trump’s ambassador to Israel.
“To my friend Donald Trump, you are better than this. Even a social visit from an antisemite like Kanye West and human scum like Nick Fuentes is unacceptable,” Friedman wrote in a tweet. “I urge you to throw those bums out, disavow them and relegate them to the dustbin of history where they belong.”
On Saturday, former Secretary of State Mike Pompeo, a potential 2024 rival, also denounced antisemitism, without directly referencing the dinner or the president under whom he served.
“Anti-Semitism is a cancer,” Pompeo wrote, adding: “We stand with the Jewish people in the fight against the world’s oldest bigotry.”
Biden, asked about the Trump dinner meeting while vacationing in Nantucket, Massachusetts, replied, “You don’t want to hear what I think.”


UN warns 500,000 more people will need humanitarian aid in South Sudan

UN warns 500,000 more people will need humanitarian aid in South Sudan
Updated 27 November 2022

UN warns 500,000 more people will need humanitarian aid in South Sudan

UN warns 500,000 more people will need humanitarian aid in South Sudan
  • Conditions worsened by violence, public health challenges, climate change

JUBA, South Sudan: Some 9.4 million people in South Sudan will need humanitarian assistance and protection services next year, half a million more than the current number, the UN  has said in a report.

According to the 2023 South Sudan Humanitarian Needs Overview report, more people will face food insecurity in 2023. Currently, nearly a third of 12.4 million people living in South Sudan are facing severe food insecurity.

Humanitarian conditions have been worsened by endemic violence, conflict, access constraints, operational interference, public health challenges and climate change effects such as flooding and drought, the report said.

The need for assistance will be greatest in counties in the Upper Nile and Western Equatoria States that have been facing conflict.

“Something has to change in South Sudan because the number of people in need continues to rise every year and the resources continue to decrease,” said Sara Beysolow Nyanti, the Humanitarian Coordinator in South Sudan, in a statement. Nyanti appealed to the government to ensure conditions of peace and to foster development in order to reduce the need for humanitarian aid.

Violence continues to plague the country, posing a threat to a peace deal signed in 2018 by former rivals President Salva Kiir and deputy Riek Machar.

Machar has in recent times accused Kiir of violating the peace agreement.

Hundreds of thousands of people were killed and millions displaced in a civil war before the peace deal was signed.


Taiwan president resigns as party leader after election loss

Taiwan president resigns as party leader after election loss
Updated 26 November 2022

Taiwan president resigns as party leader after election loss

Taiwan president resigns as party leader after election loss

TAIPEI: Taiwan President Tsai Ing-wen resigned as head of the ruling Democratic Progressive Party following local election losses on Saturday suffered by
her party.

Voters in Taiwan overwhelmingly chose the opposition Nationalist party in several major races across the self-ruled island in an election in which lingering concerns about threats from China took a backseat to more local issues.

Tsai had spoken out many times about “opposing China and defending Taiwan” in the course of campaigning for her party. But the party’s candidate Chen Shih-chung, who lost his battle for mayor of Taipei, only raised the issue of the Communist Party’s threat a few times before he quickly switched back to local issues as there was little interest, experts said.

Tsai offered her resignation on Saturday evening, a tradition after a major loss, in a short speech in which she also thanked supporters.

“I must shoulder all the responsibility,” she said. “Faced with a result like this, there are many areas that we must deeply review.”

While international observers and the ruling party have attempted to link the elections to the long-term existential threat that is Taiwan’s neighbor, many local experts do not think China — which claims the island as its territory to be annexed by force if necessary — has a large role to play this time around.

“The international community has raised the stakes too high. They’ve raised a local election to this international level, and Taiwan’s survival,” said Yeh-lih Wang, a political science professor at National Taiwan University.

BACKGROUND

While international observers and the ruling party have attempted to link the elections to the long-term existential threat that is Taiwan’s neighbor, many local experts do not think China has a large role to play this time around.

During campaigning, there were few mentions of the large-scale military exercises targeting Taiwan that China held in August in reaction to US House Speaker Nancy Pelosi’s visit.

“So I think if you can’t even raise this issue in Taipei,” Wang said. “You don’t even need to consider it in cities in the south.”

Candidates from the Nationalist party won the mayoral seat in Taipei, Taiwan’s capital, as well as in Taoyuan, Taichung and New Taipei city.

Taiwanese were picking their mayors, city council members and other local leaders in all 13 counties and in nine cities. There was also a referendum to lower the voting age from 20 to 18, which was defeated, according to local media.

Chiang Wan-an, the new Taipei mayor, declared victory Saturday night in a large rally. “I will let the world see Taipei’s greatness,” he said.

Not all votes had been formally counted by the time of his speech, but Chiang and the other candidates’ numerical lead allowed them to declare victory.

Kao Hung-an, a candidate in the relatively new Taiwan People’s Party, won the mayoral seat in Hsinchu, a city home to many of Taiwan’s semi-conductor companies.

Campaigns had resolutely focused on the local: air pollution in the central city of Taichung, traffic snarls in Taipei’s tech hub Nangang, and the island’s COVID-19 vaccine purchasing strategies, which had left the island in short supply during an outbreak last year.

The defeat for the ruling DPP may be partly due to how it handled the pandemic.


DR Congo to hold next presidential polls in December 2023

DR Congo to hold next presidential polls in December 2023
Updated 26 November 2022

DR Congo to hold next presidential polls in December 2023

DR Congo to hold next presidential polls in December 2023
  • President Felix Tshisekedi came to power in January 2019, succeeding Joseph Kabila after 18 turbulent years as leader

KINSHASA: The Democratic Republic of Congo will hold its next presidential polls on Dec. 20, 2023, the country’s electoral commission said on Saturday.
The announcement comes as rebels have advanced in the restive east of the African country, displacing tens of thousands of people from their homes.
The electoral commission’s president said “persisting insecurity in some parts of the territory” would be a challenge to holding a “free, democratic and transparent” vote.
In the DRC, the presidential poll is held at the same time as parliamentary, provincial and local elections.
The president-elect would then take office in January 2024.
President Felix Tshisekedi came to power in January 2019, succeeding Joseph Kabila after 18 turbulent years as leader.
It was the country’s first peaceful handover of power.

FASTFACT

President Felix Tshisekedi came to power in January 2019, succeeding Joseph Kabila after 18 turbulent years as leader.

He has already announced his intention to run for a second term, despite clashes over the results.
Other possible contenders could include Martin Fayulu, the runner-up in the 2018 presidential polls who claims he was deprived of a victory in the vote.
There has been no immediate announcement from former prime minister, Adolphe Muzito, and the ex-governor of the southern region of Katanga, Moise Katumbi, who are also seen as potential candidates.
Augustin Matata Ponyo, another ex-premier, has said he will run.
Ponyo last year went on trial on charges he embezzled public funds, but the constitutional court ruled it did not have the authority to judge him.
The court’s lineup has however now changed, and has said it could try him.
Tshisekedi’s inauguration ceremony in 2019 capped more than two years of turmoil sparked by Kabila’s refusal to step down when he reached the constitutional limit on his term in office.
The last two presidential elections before that, in 2006 and 2011 — both won by Kabila — were marred by bloodshed and dozens died in a crackdown on protests after he chose to remain in office in 2016. A country the size of continental western Europe, the former Belgian colony lived through two regional wars in 1996-97 and 1998-2003.
The March 23 rebel group took up arms in late 2021 after years of dormancy, claiming the DRC had failed to honour a pledge to integrate its fighters into the army, among other grievances.
After four months of relative calm, the conflict erupted again on Oct. 20 and the rebels made a push towards Goma.
The fighting has dashed relations between the DRC and Rwanda, with Kinshasa accusing its smaller neighbor of backing the M23 — something UN experts and US officials have also said. Kigali denies the charges.
Tshisekedi and Rwandan Foreign Minister Vincent Biruta met in Angola on Wednesday, agreeing to a cessation of hostilities in eastern DRC from Friday evening.
M23 rebels were to withdraw from “occupied zones,” failing which an East African regional force would intervene.
But the rebels, a largely Congolese Tutsi militia, said on Thursday the ceasefire “doesn’t really concern us,” and called for “direct dialogue” with DRC’s government.
The frontlines seemed quiet on Saturday morning, but residents in the eastern DRC remained sceptical that it would hold.