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. Meanwhile, the company secretly relied on traditional methods to run tests and provided patients with inaccurate results, prosecutors said. Sunny's trial was being held in the same courtroom where Elizabeth was convicted earlier in January, and he faced the same charges. "It was interest-free. When he walked out the door, the company was extremely valuable," Walsh said in Balwani's defense. 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. She spent two years as Hearst Digital Media's News Director, managing an international shared news desk. Our product picks are editor-tested, expert-approved. 'I am not leaving until we break even. Holmes sought to blame Balwani for her crimes, but was convicted of four charges - one count of conspiracy to commit wire fraud, and three counts of wire fraud. Sign up for NBC Bay Areas Housing Deconstructed newsletter. Ramesh 'Sunny' Balwani was someone who understood how to run a successful start-up. By 2004, after Holmes had launched Theranos, Balwani had become something of a confidant. Ex-Theranos executive Sunny Balwani sentenced to nearly 13 years in Ramesh "Sunny" Balwani first met future Theranos founder Elizabeth Holmes in Beijing in 2002. Cloudy. When she needed more investors to help the company expand, Sunny gave her enough money to keep going. But he received a very different verdict than that of his ex-girlfriend, former. Witnesses for the prosecution included former Theranos lab managerMark Pandori, who told jurors "I considered Mr. Balwani and Elizabeth to be unified in all of their decision-making processes,"and described how Balwani had ordered the lab to misrepresent the ways in which their products worked by prioritizing blood samples from investors to make it seem like the process was faster and more accurate than it was, according to Insider. Theranos claimed the machines required just a few drops of blood to run and could execute more than 1,000 tests. All Rights Reserved. Hearst Magazine Media, Inc. All Rights Reserved. Elizabeth Holmes Allegedly Tried To Flee US After Guilty Verdict We may earn commission from links on this page, but we only recommend products we back. She is scheduled to report to a prison in Bryon, Texas, on April 27 to begin a sentence of more than 11 years. Elizabeth Holmes has 2nd child as prison sentence looms While Sunny faces up to two decades in prison on fraud charges, like Elizabeth, hes not currently in police custody. A stray shower or thunderstorm is possible. Ramesh 'Sunny' Balwani gets a nearly 13-year sentence for Theranos 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. Sunny Balwani new trial motion denied by judge - kron4.com "I don't think it happened in one moment, but it was very clear we were colleagues.". In her testimony, Ms. Holmes has accused Mr. Balwani of emotionally abusing her and. All rights reserved. Elizabeth Holmes testifies college rape, partner's control fueled her Mr. The sentence on Wednesday was handed down by Judge Edward J. Davila at a federal courthouse in San Jose, California. Convicted fraudster Elizabeth Holmes has submitted a court request to remain out of prison for the duration of her appeal, owing to the fact that she recently gave birth to her second child.. Literally.. Where Is Theranos' Ramesh 'Sunny' Balwani Now? Prison Sentence Balwani had become the companys president and COO, despite having little experience in biochemistry. Holmes, 38, also is seeking to remain free on bail while she appeals her conviction on four counts of fraud and conspiracy. Both pleaded not guilty and were released on bail. He did not defraud consumers but instead worked tirelessly to empower them with access to their own health information. In February, after Holmes's trial wrapped, Balwanis counsel asked the judge to exclude from his trial any evidence or information obtained during Holmess proceedings. Balwani assumed broad responsibility for day-to-day operations at the company. Holmes replied: 'What makes you say lazy.'. Theranos exec Sunny Balwani convicted of fraud - BBC News Although Holmes was recently convicted of fraud charges (and awaits sentencing later this year; she could face up to 20 years), Balwanis trial has not yet started. His nearly 13-year ordered term is even longer than what Elizabeth Holmes received. Carreyrou published a book on his investigation, "Bad Blood: Secrets and Lies In aSilicon Valley Startup"; several true crime podcasts, articles, and a documentary all focused on Holmes followed his lead. The company, once valued at $9 billion, became an emblem of Silicon Valley malfeasance after it came to light that Balwani and Holmes misled investors even as the product failed to work. Sunny Balwani - Wikipedia Juries in the trials of Elizabeth and Sunny concluded that both misled investors, per WaPost. A former Theranos employee told 60 Minutes that Sunny was abrupt with staffers and would fire people on the spot who didnt produce the test results they were after. FILE - Ramesh "Sunny" Balwani, right, the former lover and business partner of Theranos CEO Elizabeth Holmes, walks into federal court in San Jose, Calif., June 24, 2022. Elizabeth Holmes Sunny Balwani. Documents unsealed in Elizabeth Holmes case suggest she allege ex ", 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 other, previous exchanges, before the romance soured, Balwani complained about a negative internal review that was written anonymously by an employee. A Division of NBCUniversal. Best Travel Backpacks For Every Type Of Traveler, Everything (!!!) Ramesh "Sunny" Balwani, the former lover and business partner of Theranos CEO Elizabeth Holmes, arrives at federal court in San Jose, Calif., Wednesday, Dec. 7, 2022. By comparison, his . In 2015, the company came under scrutiny. In dueling sentencing memorandums filed late Wednesday night, lawyers for convicted Theranos executive Ramesh "Sunny" Balwani told a federal judge that their client should be put on probation and not serve any prison time. Why hurting myself? ", Balwani, the lawyers said, falls into the latter category: He "did not profit, nor did he try to profit," from his fraudulent conduct. The interest increased with the airing of the limited series "The Dropout," which featured Amanda Seyfried as Elizabeth Holmes and Naveen Andrews as her boyfriend and business partnerRamesh "Sunny" Balwani. In 2009, Sunny became the president and COO of Theranos. Their trials were severed in 2021. .css-13y9o4w{display:block;font-family:GraphikBold,GraphikBold-fallback,Helvetica,Arial,Sans-serif;font-weight:bold;margin-bottom:0;margin-top:0;-webkit-text-decoration:none;text-decoration:none;}@media (any-hover: hover){.css-13y9o4w:hover{color:link-hover;}}@media(max-width: 48rem){.css-13y9o4w{font-size:1.05rem;line-height:1.2;margin-bottom:0.25rem;}}@media(min-width: 40.625rem){.css-13y9o4w{font-size:1.28598rem;line-height:1.2;}}@media(min-width: 48rem){.css-13y9o4w{font-size:1.39461rem;line-height:1.2;margin-bottom:0.5rem;}}@media(min-width: 64rem){.css-13y9o4w{font-size:1.23488rem;line-height:1.3;}}Every Song From the Daisy Jones' Soundtrack, 'Daisy Jones & The Six' Makes Some Major Changes, 'Sex/Life' Season 2 Features Even More Male Nudity, Hugh Jackman Could Play Multiple Wolverines, 'Ant-Man' Writer Responds to 'Quantumania' Theory. We are no longer accepting comments on this article. Davila later granted each a separate trial after Holmes said she would take the stand and testify thatBalwaniwas abusive in their relationship. Ramesh "Sunny" Balwani, former president and chief operating officer (COO) of Theranos arrives during jury deliberations at his federal trial for wire fraud and conspiracy to commit wire fraud in San Jose, California, June 28, 2022. Balwani's sentencing in federal court marks the end of the Theranos saga, which enthralled the public and prompted documentary films and novel treatments. After one incident in which Balwani allegedly forced her to have sex, Holmes wrote in a document recorded on her iPhone: Dont enjoy literally anything about it or who I am if I did it. The company collapsed after a series of Wall Street Journal articles in 2015 questioned its technology. It was a good-faith loan.". Why Elizabeth Holmes, Ramesh Balwani Trial Verdicts Differed Theranos COO Ramesh "Sunny" Balwani was sentenced in California federal court on Wednesday after his conviction on fraud charges in the wake of the blood-testing startup's implosion. He has been ordered to report to prison on March 15, 2023. Both Elizabeth Holmes (above) and Sunny Balwani were charged with several counts of fraud; Their cases were split, and both pleaded that they were not guilty. Is Riley Keough Singing in Daisy Jones & The Six? And upset with me for not doingeverything you wanted me to do.'. , updated The fraud trial of Elizabeth Holmes's ex-boyfriend and former Theranos executive Sunny Balwani returns to a San Jose courtroom Tuesday after a weeklong, COVID-related delay. Balwani leaves the courthouse in January. Jury. He was convicted on 12 fraud-related charges. 01:59 GMT 04 Jan 2022. A jury on Thursday convicted former Theranos executive Ramesh "Sunny" Balwani of collaborating with disgraced Theranos CEO Elizabeth Holmes in a massive fraud involving the blood-testing . Naveen Andrews as Sunny Balwani on the new Hulu adaptation of the Theranos story. Elizabeth Holmes Sentenced to More Than 11 Years in Prison for Theranos Scam, Judge Denies Motion by Former Theranos Executive Sunny Balwani for New Trial, Team of Volunteers Escort, Protect Hot Dog Vendor Attacked Outside SAP Center, Los Gatos Mom Accused of Hosting Alcohol-Fueled Teen Parties Attacked in Jail, Hospitalized, People Are Buying Girl Scouts' Raspberry Rally Cookies on eBay and the Scouts Are Not Happy. Like Holmes, Balawani does not appear to be in jail awaiting the trial. In a 2014 New Yorker article, Theranos investor Henry Kissinger says he and his wife tried unsuccessfully to set Holmes up on dates. Lawyers for Balwani depicted Theranos as a venture launched and shaped by Holmes. He is being tried separately next year. She also said that he managed her diet and her relationships with other people. An investigation by journalist John Carreyrou that uncovered widespread practices of fraud within the company led to Holmes' ousting and the company stopping operations entirely in 2018. #Update: Prosecutors ask for a 15-year prison sentence (and $803 million in restitution) for Sunny Balwani, former . Instead, he "worked day and night to build a company that he thought would change the landscape of diagnostic testing for the better. As in .css-16acfp5{-webkit-text-decoration:underline;text-decoration:underline;text-decoration-thickness:0.125rem;text-decoration-color:#d2232e;text-underline-offset:0.25rem;color:inherit;-webkit-transition:all 0.3s ease-in-out;transition:all 0.3s ease-in-out;}.css-16acfp5:hover{color:#000;text-decoration-color:border-link-body-hover;background-color:yellow;-webkit-transition:all 0.3s ease-in-out;transition:all 0.3s ease-in-out;}The Dropout, Hulus new series dramatizing the rise and fall of Theranos, Holmes and Balwani immediately became close. 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 . David Paul Morris | Bloomberg | Getty Images, sentenced to more than 11 years in prison. But Balwani, his lawyers argued, "is not the same as Elizabeth Holmes: he actually invested millions of dollars of his own money; he never sought fame or recognition; and he has a long history of quietly giving to those less fortunate (dating to well before his time at Theranos) without seeking recognition or benefit. More than two months after Theranos founder and former CEO Elizabeth Holmes was . Balwani was convicted of 12 counts of fraud and conspiracy in July. The victims of their crimes were listed as investors and patients. Jennifer Smith, Chief Reporter For Dailymail.Com, Pavement where disabled woman gestured at cyclist before fatal crash, Dozens stuck in car park as staff refuses to open gate for woman, Incredible footage of Ukrainian soldiers fighting Russians in Bakhmut, Pro-Ukrainian drone lands on Russian spy planes exposing location, 'Buster is next!' All have been my decisions too." They developed a friendship, which later turned into a romantic relationship and then a dysfunctional partnership with Balwani investing some $12-14 million into Holmes company before leaving in 2016. Turn on desktop notifications for breaking stories about interest? Sunny was, replied Holmes, who has spent seven days testifyingin her own defense, denyingthat she swindled patientsand investors out of millions while knowingly producing a faulty testing device toenrich herself. Is Elizabeth Holmes' guilty verdict a wake-up call for startups? Former Theranos COO Sunny Balwani sentenced to nearly 13 years. In an interview with The New York Times, Reed Kathrein, a San Francisco lawyer who sued Theranos in 2016 on behalf of investors, said She was the Wizard of Oz, dazzling the investors and media, but [Balwani] was the one behind the curtain working the machinery. Reed added: He knew everything.. Sunny was charged with 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. Heres everything you need to know. 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. During her trial, Elizabeth accused Sunny of emotional and physical abuse, which he has since denied. Hearst Magazine Media, Inc. All Rights Reserved. The atmosphere of the place became caustic, former Theranos vice president Anthony Nugent testified, according to Bloomberg. In her presentation, Amy Walsh asserted Theranos still had $350 million in cash and intellectual property worth about $100 million in May 2016 when Holmes fired Balwani as the company's chief operating officer and ended their romantic relationship. Balwanis attorneys asked for a sentence of probation, arguing that he sought to make the world a better place through Theranos and was not motivated by fame or greed. Sunny was also convicted of defrauding patients who used the technology, which was available for a short period at some drugstores. How much did Sunny Balwani invest in Theranos? - StyleCaster Holmes was then 19 and attending Stanford Universitys Mandarin program, which was held over the summer before the start of the school year. Balwani didn't testify in his own defense. 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 . "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. Balwani left the company in 2016 after Holmes brought in outside advisers and lab directors. Ex-Theranos President Sunny Balwani Has Been Sentenced to Jail His nearly 13-year ordered term is even longer than what Elizabeth Holmes received. He did not defraud Theranos investors, who were among the most sophisticated in the world. Over the course of her trial, Holmes accused Balwani of emotionally and sexually abusing her over the course of their personal and professional relationships. Elizabeth Holmes: Top Theranos executive Sunny Balwani convicted Theranos sought to revolutionize the medical testing industry with a product that could assess an array of potential health issues with just a few drops of blood. She was cleared of four other charges. Did he have any qualifications in the lab testing business? the attorney asked. 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. Prosecutors have submitted texts she exchanged with Theranos co-founder Sunny Balwani, her former secret lover, in 2014 and 2015 . As the story of Theranos came to light, another company executive who had primarily worked behind the scenes during the company's golden years attracted interest. So so much. Theranos' Sunny Balwani Asks for No Prison Time; Prosecutors Want 15 Ramesh 'Sunny' Balwani sentenced to 13 years for Theranos fraud Balwani recently sold the home he shared with Holmes. In September of 2020, at Balwanis request, the presiding judge, U.S. District Judge Edward Davila, announced that Balwani and Homes would be tried separately. 24/7 coverage of breaking news and live events. Data is a real-time snapshot *Data is delayed at least 15 minutes. Former Theranos COO Sunny Balwani was found guilty in all 12 counts of fraud on July 7. 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. U.S. urges 15-year sentence for ex-Theranos president Balwani Elizabeth Holmes says Theranos' former president abused her (BCN) In another twist to the continuing saga of the trials of Theranos founder Elizabeth Holmes and her former business partner and lover, Ramesh . SAN JOSE, Calif. . 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. It is scheduled to begin on March 15 and to last 13 weeks. Former Theranos executive Ramesh "Sunny" Balwani returned to federal court Friday in a last-ditch attempt to stay out of prison while appealing . Where Is Theranos COO Ramesh Sunny Balwani Now? Balwani's trial has been scheduled for next year. We may earn a commission through links on our site. 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.. Former Theranos exec seeks to avoid lengthy prison sentence Balwani was 37. In the last moments of her testimony Wednesday, Holmes reiterated that she never intended to mislead investors, even though she admitted that they lost money under her reign. Holmes was lauded as a visionary who would change health care forever and in 2014, she became the world's youngest female self-made billionaire, per Britannica. The lawyer also pointed to Balwani's non-violent history and past charity work in India as evidence he poses no danger to the community. Balwani and Holmes, former romantic partners, helmed Theranos as the company enjoyed a meteoric rise, attracting backers ranging from the DeVos family to news magnate Rupert Murdoch. Albany, GA (31701) Today. Turn on desktop notifications for breaking stories about interest? They go from optimistic declarations of love in 2014 - 'This is our year. But Holmes and Balwani had a long-term romantic relationship, Holmes later testified. I'm sad at where you and I are. After meeting when Holmes was in China for Stanford's Mandarin program in 2002 . Balwani has denied those allegations. We'll get them'. One former employee says, also on the podcast, that Balwani earned the nickname "the enforcer" due to his intimidating management style. Elizabeth Holmes during her testimony blamed ex-boyfriend Ramesh "Sunny" Balwani for much of the deception that occurred at her biotech company Theranos. Texts between the two were released during the trial, which included Sunny saying things like Missing u in every breath and in every cell, per Bloomberg, with Elizabeth replying ditto.. SAN JOSE, Calif. (AP) Former Theranos executive Ramesh "Sunny" Balwani returned to federal court Friday in a last-ditch attempt to stay out of prison while appealing a jury's verdict. Holmes and Balwani both face 12 chargestwo counts of conspiracy to commit wire fraud and 10 counts of wire fraudfor allegedly engaging in a multimillion-dollar scheme to deceive investors . Down to 5 people. Who was the most important adviser to you? asked Downey. Former Theranos Chief Operating Officer and President Ramesh "Sunny" Balwani was sentenced to nearly 13 years in prison Wednesday for fraud, after the unraveling of the blood-testing juggernaut prompted criminal charges in California federal court against both Balwani and Theranos founder Elizabeth Holmes, who on Nov. 18 was sentenced to more than 11 years in prison. Elizabeth Holmes Is Pregnant with Her Second Baby, It Is Revealed, as She's Sentenced to 11 Years. U.S. District Judge Edward Davila, who presided over both trials, sentenced Holmes to more than 11 years in prison, despite her lawyers' request for a maximum sentence of 18 months of house arrest. 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.