The 17-page ruling issued late Thursday pushes Balwani, 57, a step nearer to having to start a practically 13-year jail sentence he acquired after a jury convicted him of 12 counts of fraud and conspiracy final yr.
Balwani is scheduled to report back to jail March 15 except he can win a reprieve from a federal appeals court docket in a movement his legal professionals say they plan to file.
Until the appeals court docket guidelines he can stay free, Balwani has been ordered to report back to an Atlanta federal jail, in accordance with court docket paperwork. The 121-year-old jail has been affected by misconduct and different abuses described by whistleblowers throughout a congressional listening to final yr.
U.S. District Choose Edward Davila, who sentenced Balwani and denied his request to stay free on attraction, had really useful he serve his time in a Lompoc jail. That facility is positioned about 250 miles (400 kilometers) from the San Jose, California, courtroom the place his trial unfolded final yr.
The decide’s denial of Balwani’s request to stay free on attraction might not bode effectively for Holmes, Theranos’ CEO and founder. Her legal professionals are additionally pushing Davila to permit her to remain out of jail throughout an attraction of her conviction on 4 felony counts of investor fraud and conspiracy. A March 17 listening to has been scheduled for Holmes’ legal professionals to attempt to persuade Davila to permit her to stay free till the appeals case is resolved.
Holmes, 39, is scheduled to start out a sentence of greater than 11 years on April 27. That may separate her from a 1-year-old son she had shortly earlier than her trial started in September 2021 and a lately born little one she was carrying at her November sentencing.
Though they’d separate trials, Holmes and Balwani had been accused of primarily the identical crimes centered on a ruse touting Theranos’ blood-testing system as a revolutionary breakthrough in well being care. The claims helped the corporate develop into a Silicon Valley sensation that raised practically $1 billion from buyers.
However its know-how by no means got here near working like Holmes and Balwani boasted, leading to Theranos’ scandalous collapse and a prison case that shined a vibrant mild on Silicon Valley greed and hubris.
Davila hasn’t but selected how a lot cash Holmes and Balwani every ought to need to pay for his or her crimes. Federal prosecutors are in search of restitution of practically $900 million.
In a listening to final month on Balwani’s bid to stay free, his attorneys alleged federal prosecutors had distorted and misrepresented path proof in a way that makes it doubtless Balwani will prevail in his attraction of the convictions. The legal professionals additionally pointed to Balwani’s non-violent historical past and previous charity work in India as justification for him remaining free, asserting that he poses no hazard to the group.
Though Davila agreed Balwani is neither a flight threat nor harmful, he concluded that also wasn’t sufficient to permit him to delay his time in jail. Davila wrote that he didn’t discover proof elevating “substantial query of regulation or reality” throughout Balwani’s four-month trial that may advantage overturning the jury’s verdict.
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