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Article Former Theranos executive Ramesh "Sunny" Balwani, who long served as the second-in-command to founder Elizabeth Holmes, was convicted of all 12 counts in federal court in San Jose for. Balwani faced a sentence of 20 years for each of the 12 counts, but legal experts expect the sentences to be served at the same time, giving him a maximum sentence of 20 years. Besides overseeing arguments about Balwani's attempt to delay the start of his nearly 13-year prison sentence, U.S. District Judge Edward Davila also heard a vigorous debate about how much money Balwani should pay investors and patients duped by the Theranos blood tests that never worked as promised. Ramesh "Sunny" Balwani is the former COO of Theranos, as well as the former lover of Theranos CEO and founder Elizabeth Holmes. Sunny would often blow off steam or vent through text, Holmes said. She added that he said that who I was was never going to be a person who would succeed in life or in business, so I needed to kill that person and become a new Elizabeth.. All rights reserved. One former employee says, also on the podcast, that Balwani earned the nickname "the enforcer" due to his intimidating management style. Is 'Daisy Jones & The Six' Based on a True Story? Holmes also told the jury that she tried not to ignite Balwani, who served as president and chief operating officer of Theranos, in their correspondence, which was often by text message. , updated During her trial, Elizabeth shared notes she said Sunny had given her that broke down how she should act and speak, per CNBC. In fact, he met Holmes when she was just 18 and joined Theranos in its early days. The pair hid their romantic relationship and the fact that they lived together from investors. Balwani was previously married to a Japanese artist, but according to Carreyrou, began dating and living with the Theranos founder in 2005. In 2015, the company came under scrutiny. Data is a real-time snapshot *Data is delayed at least 15 minutes. All Rights Reserved. Disgraced Theranos founder Elizabeth Holmes closed the last day of testimony in her criminal fraud trial by once again bashing her ex-boyfriend and former No. They were both in China studying at Beijing University as part of a Stanford program. (BCN) In another twist to the continuing saga of the trials of Theranos founder Elizabeth Holmes and her former business partner and lover, Ramesh . Her book, White House By the Sea, about the Kennedys in Hyannis Port, is out summer 2023. The wild and complicated story of Theranos founder Elizabeth Holmes and her quest to create a company that would diagnose a slew of serious health conditions with a single drop of blood is finally drawing to a close. By comparison, his . Holmes also testified that Balwani abused her and forced her to have sex with him during the time the fraud charges took place. We've received your submission. A federal judge on Monday, Nov. 7, granted a three-week delay in the sentencing of Balwani to give probation officers more time to recommend his punishment for engineering a . Former Theranos President and COO Ramesh "Sunny" Balwani smiles after a hearing at a federal court in 2019. He has pleaded not guilty to all 12 counts. Holmes started dating the Evans Hotels heir following the end of her controversial relationship with Sunny Balwani. Like Holmes, the jury's verdict was guilty on all counts brought against Balwani. Since Sunny has . At 19, Holmes dropped out of college to start Theranos. Cloudy. Balwani had become the companys president and COO, despite having little experience in biochemistry. Coopersmith gave a statement in which he relayed that his client was "obviously disappointed" in the jury's decision and that Balwani was considering several options, including appeal. "Kill the old Elizabeth," Balwani purportedly told her. Ramesh "Sunny" Balwani, the former chief operating officer of failed blood testing startup Theranos, was sentenced Wednesday to nearly 13 years in prison for fraud. After Holmes launched Theranos at the age of 19, she needed a second round of investment to help it continue to grow. Now, after a jury has just found Sunny guilty of defrauding investors and patients, he has received his a sentence of nearly 13 years in federal prison. However, this figure is likely to drop if he is convicted. The two originally bought the mansion in 2013 for $9 million. Where Is The Dropout's Sunny Balwani Today? Where Sunny Balwani From 'The Dropout' Is Now, Every Song From the Daisy Jones' Soundtrack, Securities and Exchange Commission (SEC) attorney asked Holmes about Balwanis hiring, reported that Balwani worked as sales manager for Microsoft, texts obtained by Carryrou show that both he and Holmes were actively involved, testified that Balwani abused her and forced her to have sex with him, Your Privacy Choices: Opt Out of Sale/Targeted Ads. Sunny Balwani's trial began in March 2022; he was charged with 12 counts of fraud. The revelations about Theranos brought about a stunning fall from grace for both Balwani and Holmes, who were in a relationship for much of their tenure at the company. Restitution will be decided at a later date. 24/7 coverage of breaking news and live events. Everything To Know About 'Daisy Jones & The Six'. She has been ordered to report to prison on April 27, 2023. Though it would later collapse, Balwani reportedly left with $40 million. pic.twitter.com/W7AmOD6UY0, Copyright 2023 NBCUniversal Media, LLC. It would also be far larger that than the $120 million loss estimate that Davila used in calculating Balwani's prison sentence. I was trying to be supportive., Downey asked Holmes if Balwani criticized employees at Theranos as being incompetent.. She testified that when she laterstarted dating Balwani, he said I was safe now that I had met him.. Around then, the legal issues started piling upthe Centers for Medicare and Medicaid Services banned Sunny from owning or operating a blood laboratory again, per Refinery29. Ramesh "Sunny" Balwani, 57, is an American businessman and the ex-president and chief operating officer of Theranos, a health technology company founded by his then-girlfriend Elizabeth Holmes. Balwani recently sold the home he shared with Holmes. Balwani has been charged with nine counts of wire fraud and two counts of conspiracy to commit wire fraud charges his attorney, Jeffrey Coopersmith, has described as "odd," given that Balwani. Balwani left Theranos abruptly in 2016. Balwani, 57, is also trying to convince U.S. District Judge Edward Davila to delay the start of his nearly 13-year prison sentence. Holmes, 37, took the stand before the defense rested Wednesday, fielding questions from her lawyer Kevin Downey and portraying Balwani as a Svengali who took advantage of her youth and inexperience. Balwani had asked for a sentencing date of Jan. 23, 2023, due to an undisclosed health problem and to make sure family members could attend the hearing. The judge did not want their trials to run at the same time. We'll get them'. BY Michael Liedtke and The Associated Press. An interview with a Theranos assistant was also included and detailed how both Balwani and Holmes ordered each other flowers for Valentine's Day in 2016. She broke down in tears on the stand and claimed he controlled her schedule, her appearance, and her interactions with her family. Ex-Theranos President Sunny Balwani Has Been Sentenced to Jail His nearly 13-year ordered term is even longer than what Elizabeth Holmes received. The two sides also painted radically different pictures in their arguments about whether Balwani should be allowed to remain free during his appeal. Elizabeth Holmes and Ramesh 'Sunny' Balwani had a 12-year relationship, and when Holmes took the stand for a fourth day in the United States on Monday, she testified that Balwani inflicted sexual . Thanks for contacting us. The judge said he doesn't expect to decide on the question of how much Balwani should pay in restitution until another hearing on the same issues is held for Holmes, Theranos' disgraced CEO, on March 17. The amount Holmes will need to pay back to investors will be determined at a later date, NBC's Scott Budman tweeted from the courtroom.. Holmes spoke at the sentencing, stating, "I regret my failings with every cell of my body." Elizabeth Holmes (through tears): "I am devastated by my failings. Ramesh "Sunny" Balwani, the former romantic partner of Elizabeth Holmes and president of disgraced blood testing company Theranos, was sentenced Wednesday to 155 months, or nearly 13 years, in prison. A key part of Holmes defense has been shifting blame to Balwani, 56, who Holmes claims abused her physically, emotionally and sexually. In addition to 155 months in prison, Balwani was ordered to serve three years of probation after the sentence. David Paul Morris/Bloomberg via Getty Images, Bad Blood: Secrets and Lies In aSilicon Valley Startup. Where Is 'Murdaugh Murders' Morgan Doughty Now? Davies also stressed Balwani's compliance with all bail requirements since he was indicted in 2018 as evidence that he isn't a flight risk. ", They argued that even if the judge applied the same analysis he did in the Holmes case -- a calculation that yielded a term of 135 months -- a longer term is warranted for Balwani because he was convicted of all 12 counts of the same indictment brought against Holmes, including "additional substantive fraud counts involving patients. Prosecutor Robert Leach openly scoffed at Walsh's contention that Balwani should owe nothing, calling it a remarkable position.". 'Can't leave like this,' he went on, warning Holmes that he 'didn't like' the 'PR direction' she was heading in. Earlier in her testimony, Holmes told the jury that being raped while a student at Stanford University pushed her to drop out of school and throw herself into building the company. Balwani's trial has been scheduled for next year. They discussed the result he would get and how he wanted to write 'something negative'. All have been my decisions too." But after Anthony Ciccone's death, TOM . The comments below have not been moderated, By The software developer later joined Theranos in 2009 as chief operating officer, president and unofficially Holmes' personal director of secret police. There were people that were long-term investors and I wanted to talk about what this company could do a year from now, five years from now, 10 years from now.. Holmes will be sentenced in September and remains out on bail as of July 12, 2022. Prosecutors argued that the extent of the fraud and the need to "promote respect for the law" merit a prison term of 15 years. By 2000, Balwani decided to sell his shares, walking away with $40 million before the company went out of business. Over the course of her trial, Holmes accused Balwani of emotionally and sexually abusing her over the course of their personal and professional relationships. Naveen Andrews (left) plays Ramesh "Sunny" Balwani, Theranos president and COO. Balwani played a major role in the rise and collapse of the blood-testing business. Sunny Balwani, Ex-Boyfriend of Elizabeth Holmes and Former Theranos Exec, Begins Fraud Trial. 'I am narrowing this down on CUA. Feb. 17, 2023 1:19 PM PT. Balwani's lawyers argued that Holmes had been behind the crimes perpetrated by Theranos in the course of its operations, with Jeffrey Coopersmith telling jurors that Holmes was good at "attracting" collaborators like Balwani "to the vision that she had.". Balwani assumed broad responsibility for day-to-day operations at the company. They kept their relationship a secret from Theranos staff and investors as well as the public. Prosecutors have submitted texts she exchanged with Theranos co-founder Sunny Balwani, her former secret lover, in 2014 and 2015 . The probation office had recommended a nine-year sentence. He faces the same fate as Elizabeth Holmes. Balwani was convicted in July of 12 counts of wire . The jurors in Ramesh "Sunny" Balwani's criminal fraud trial reached a verdict after five days of deliberation. Holmes, 38, also is seeking to remain free on bail while she appeals her conviction on four counts of fraud and conspiracy. "The company was low on cash, and I knew of the mission and that what the company was trying to do was paramount and I offered to help the company and I ended up giving a $13 million personal loan," Sunny revealed in court testimony obtained by The Dropout podcast. Both sides referenced the recent sentencing of Balwani's co-conspirator and former lover, Theranos founder and CEO Elizabeth Holmes, in their filings with the court. Ultimately, however, a jury found him guilty of misleading investors and patients as the company raised more than a billion dollars and formed partnerships with drugstore giants Walgreens and Safeway. He was a 37-year-old South. Little is known or has been reported about Balwanis pre-Theranos life. Ramesh "Sunny" Balwani, the former romantic partner of Elizabeth Holmes and president of disgraced blood testing company Theranos, was sentenced Wednesday to 155 months, or nearly 13 years, in prison. Is Elizabeth Holmes' guilty verdict a wake-up call for startups? ", Prosecutors in their filing equated Balwani's role in the Theranos scandal with that of Holmes: "Balwani, with Holmes, was an equal participant in Theranos' efforts to quash the truth about its technology's limitations and failings. In addition to 135 months in prison, Holmes was ordered to serve three years of supervised release after the sentence. In 2016, the pair split up and Sunny left Theranos. Instead, he "worked day and night to build a company that he thought would change the landscape of diagnostic testing for the better. He, like Holmes, is out on bail and expected to be sentenced in November 2022. Holmes accused Balwani of abuse in court proceedings, providing text messages and contemporaneous notes from their relationship as evidence. Korin Miller is a freelance writer specializing in general wellness, sexual health and relationships, and lifestyle trends, with work appearing in Mens Health, Womens Health, Self, Glamour, and more. The texts between Holmes and her ex show how - before she reported to authorities that Balwani abused her into committing fraud - she considered him her 'king', her 'tiger' and the man she would build a future with. "Sunny Balwani did not start Theranos, he did not control Theranos, he did not have final decision-making authority at Theranos," said Balwani's attorney, Stephen Cazares. A US judge on Wednesday sentenced former Theranos President Ramesh "Sunny" Balwani to 12 years and 11 months in prison on charges of defrauding investors and patients of the blood testing. Elizabeth Holmes' play to delay her sentencing worked like a charm, as the Theranos founder is getting an evidentiary hearing today rather than the previously-scheduled sentencing.Her co-conspirator, Ramesh "Sunny" Balwani, won't get the same opportunity, however. In a court filing, the lawyers noted Balwani's financial losses on Theranos and contrasted Balwani's low public profile with Holmes, who drew "fame and media attention.". Sunny was convicted of 12 fraud-related charges back in July. Ramesh "Sunny" Balwani, former president and chief operating officer (COO) of Theranos and ex-boyfriend of founder Elizabeth Holmes, arrives during jury deliberations at his federal trial for wire . Who is Sunny Balwani, Elizabeth Holmes's former right hand at Theranos and her former boyfriend? Holmes testified that a 2015 internal lab inspection that she read in 2016, which detailed the threat Theranos products posed to patients, was her wake-up call. Prosecutors filed a legal memorandum last week arguing that the severity of the fraud and the need to "promote respect for the law" warrant a prison term of 15 years for Balwani. Opening statements. As COO, Balwani managed both the laboratory business and the financial aspects of the company. 'U are underestimated the challenges ahead and being childish,' he said in one of the messages. 01:59 GMT 04 Jan 2022. I wanted to change the impact the company could make for people and for health care, Holmes said. He was convicted on 12 fraud-related charges. His whereabouts now have not been reported. The company was bought within a year for $225 million. High 81F. Balwanis grasp on Holmes was broken in 2016, shortly after the Wall Street Journal published an expose that raised questions about the claims made by Theranos about its blood testing devices. According to reporting by The Wall Street Journals John Carryrou, who first exposed Thernos fraudulent claims to investors in a series of articles, Balwani and Holmes relationship began as a friendship in the summer of 2002.