Elizabeth Holmes' former partner and COO Sunny gets 13 years in Theranos case
SAN JOSE, CALIFORNIA: Ramesh "Sunny" Balwani, a former COO at Theranos, was sentenced to nearly 13 years in prison on Wednesday, December 7 for his involvement in the company's blood-testing scam. His sentence came less than three weeks after Elizabeth Holmes, the company's founder, and CEO, was given more than 11 years in prison for her involvement in the fraud.
Balwani was found guilty of fraud and conspiracy in July in connection with the company's fake medical technology that endangered patients and misled investors. The Theranos fraud was centered on the company's bogus claims that it had created a device that could screen for hundreds of diseases and other possible issues with just a few drops of blood drawn by a finger prick. Despite warnings that the blood tests were inaccurate after years of promoting the technology, Holmes and Balwani continued to raise money from investors, including billionaires like software tycoon Larry Ellison and media tycoon Rupert Murdoch. US District Judge Edward Davila stated that the financial statements prepared by Balwani "weren't just projections, they were lies" and "a true flight from honest business practices." This case shed light on Silicon Valley's nightmarish side, showing how its hype-based culture and boundless ambition might degenerate into lies.