Former Theranos executive Ramesh B次元官网网址淪unnyB次元官网网址� Balwani returned to federal court Friday in a last-ditch attempt to stay out of prison while appealing a juryB次元官网网址檚 verdict convicting him of orchestrating a blood-testing hoax with his former boss and lover, Elizabeth Holmes.
Besides overseeing arguments about BalwaniB次元官网网址檚 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. The deceit resulted in BalwaniB次元官网网址檚 conviction on 12 counts of fraud and conspiracy.
Davila didnB次元官网网址檛 issue any rulings at the end of the 90-minute hearing. His decision on whether Balwani can remain free on bail while he appeals his conviction, however, is likely to come soon. ThatB次元官网网址檚 because Balwani, 57, is scheduled to report to prison in Lompoc, California, on March 15.
The judge said he doesnB次元官网网址檛 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, TheranosB次元官网网址� disgraced CEO, on March 17.
Holmes, 38, also is seeking to remain free on bail while she appeals her conviction on four counts of fraud and conspiracy. She is scheduled to report to a prison in Bryon, Texas, on April 27 to begin a sentence of more than 11 years.
In FridayB次元官网网址檚 hearing, one of BalwaniB次元官网网址檚 lawyers sought to deflect the blame for TheranosB次元官网网址� eventual collapse to Holmes. 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 companyB次元官网网址檚 chief operating officer and ended their romantic relationship.
B次元官网网址淲hen he walked out the door, the company was extremely valuable,B次元官网网址� Walsh said in BalwaniB次元官网网址檚 defense.
Davila seemed skeptical of that rationale, asking Walsh: B次元官网网址淎re you saying his conduct was completely divorced from TheranosB次元官网网址� demise?B次元官网网址�
Federal prosecutors are seeking a court order that would saddle Balwani with a restitution bill of nearly $900 million B次元官网网址� a figure that would likely be largely symbolic. It would also be far larger that than the $120 million loss estimate that Davila used in calculating BalwaniB次元官网网址檚 prison sentence.
Prosecutor Robert Leach openly scoffed at WalshB次元官网网址檚 contention that Balwani should owe nothing, calling it a B次元官网网址渞emarkable position.B次元官网网址�
The two sides also painted radically different pictures in their arguments about whether Balwani should be allowed to remain free during his appeal.
Balwani attorney Mark Davies alleged that government misconduct in the presentation of evidence during BalwaniB次元官网网址檚 trial makes it likely he will prevail in the appeal of his convictions. But federal prosecutor Kelly Volkar repeatedly denied any wrongdoing.
Davies also stressed BalwaniB次元官网网址檚 compliance with all bail requirements since he was indicted in 2018 as evidence that he isnB次元官网网址檛 a flight risk. The lawyer also pointed to BalwaniB次元官网网址檚 non-violent history and past charity work in India as evidence he poses no danger to the community.
Volkar suggested Balwani may have more incentive to flee with his lengthy prison sentence now less than a month away and argued he remains a potential menace.
B次元官网网址淒amage can come in the form of economic harms as much as it can come in the form of violent harm,B次元官网网址� Volkar said.
By Michael Liedtke
THE ASSOCIATED PRESS
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