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Sunny Balwani, the former Theranos executive and ex-romantic partner of Elizabeth Holmes, has been sentenced to nearly 13 years in prison over his role in the now-defunct blood testing firm.. Jury. Part of her defense was to claim that he abused and manipulated her into any possible crime or fraud. Ramesh 'Sunny' Balwani was someone who understood how to run a successful start-up. We've received your submission. Best Travel Backpacks For Every Type Of Traveler, Everything (!!!) The victims of their crimes were listed as investors and patients. Both pleaded not guilty and were released on bail. 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. The final guideline sentence was 155 months, plus three years of probation. Balwani, 57, is now scheduled to be sentenced December 7, a postponement from the Nov. 15 date set in July after a jury convicted him on 12 felony counts of a fraud and conspiracy against. He has denied the allegations. Naveen Andrews (left) plays Ramesh "Sunny" Balwani, Theranos president and COO. Although Holmes defense at the recent trial would claim that Balwani was the one actively overseeing lab testing and inflating the companys financial models, texts obtained by Carryrou show that both he and Holmes were actively involved with the companys day-to-day operations. Who is Sunny Balwani, Elizabeth Holmes's former right hand at Theranos and her former boyfriend? SAN JOSE, Calif. -- 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 convicting him of orchestrating a blood-testing hoax with his former boss and lover, Elizabeth Holmes. Everything To Know About 'Daisy Jones & The Six'. Meanwhile, Balwani received nearly 13 years in prison, despite facing the same 12 counts as his ex. Sunny was convicted of 12 fraud-related charges back in July. Turn on desktop notifications for breaking stories about interest? 'I know u r angry in ur way. Balwani ran operations at Theranos as it secured investments from, among others, News Corp.'s Rupert Murdoch and former Trump Cabinet official Betsy DeVos. When she started dating Sunny Balwani, her co-defendant who is being tried separately, "he said I was safe now that I had met him." Then, she said, he abused and raped her. Sunny's trial was being held in the same courtroom where Elizabeth was convicted earlier in January, and he faced the same charges. Elizabeth Holmes during her testimony blamed ex-boyfriend Ramesh "Sunny" Balwani for much of the deception that occurred at her biotech company Theranos. Holmes' trial took place first, and on January 3, 2022, she was convicted of four out of the 11 counts, per The New York Times three counts of wire fraud and one count ofconspiracy to commit wire fraud by lying to investors to raise money for her company. Albany, GA (31701) Today. "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," Balwani, a former software executive, said in court testimony obtained by podcast The Dropout. The company collapsed after a series of Wall Street Journal articles in 2015 questioned its technology. Do Not Sell or Share My Personal Information. 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 was the former president and COO of Theranos. He then warned her about 'challenges' ahead and said 'U need me'. 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. 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. We've received your submission. Hearst Magazine Media, Inc. All Rights Reserved. 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 is nearly 20 years older than Holmes, who testified that he managed the lab and financial side of the business. The New York Times has reported that Balwani worked as sales manager for Microsoft. In July 2015, the pair discussed Balwani leaving the company. 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.. So, Which Band Inspired 'Daisy Jones & The Six'? Elizabeth Holmes, left in court last month, is on trial for fraud. The places I would go outside work.. Where Is 'Murdaugh Murders' Morgan Doughty Now? Holmes was convicted in January on four counts of fraud and conspiracy but acquitted of defrauding patients. 24/7 coverage of breaking news and live events. Holmes accused Balwani of abuse in court proceedings, providing text messages and contemporaneous notes from their relationship as evidence. But text messages revealed during the prosecution contradicted her narrative. In 1999, he became president of the startup CommerceBid.com. And Holmes's mother told that reporter: As a parent, I do hope that at some point she will have time for herself.. Meanwhile, the company secretly relied on traditional methods to run tests and provided patients with inaccurate results, prosecutors said. The other main character from this real-life saga is Ramesh "Sunny" Balwani, the Theranos founder's business partner and ex-boyfriend. The company's stock was severely hit, which led to the dissolution of the firm in September 2018. 'I am narrowing this down on CUA. He would force me to have sex with him when I didnt want to because he would say that he wanted me to know he still loved me, Holmes added, sobbing. Elizabeth did not testify at his trial, per The New York Post. Holmes is now married to hotel heir Billy Evans and the pair have a baby son. It marks an end to the. Elizabeth dropped out of Stanford University to run her new company, rising to fame before crashing down after the blood testing machines that were her brainchild didn't work the way she promised investors they did. They also talked about how Balwani thought they were 'lazy' and 'disorganized'. She was found not guilty of four counts involving defrauding patients who'd submitted to Theranos blood tests and the jury didn't reach a verdict concerning three counts of deceiving investors, which led to a mistrial. In media coverage, Holmes was portrayed as unattached. She testified that when she laterstarted dating Balwani, he said I was safe now that I had met him.. Holmes met Balwani, who is 19 years older than the Theranos founder, when she was in China for Stanford's Mandarin program in 2002 the same year he filed for divorce from then-wife Keiko. Ex-Theranos President Sunny Balwani Has Been Sentenced to Jail His nearly 13-year ordered term is even longer than what Elizabeth Holmes received. Balwani was found guilty on all counts on July 7, 2022, and faced up to 20 years in prison and restitution. While Sunny faces up to two decades in prison on fraud charges, like Elizabeth, hes not currently in police custody. So so much. 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. Balwani perpetrated a "decade-long campaign of psychological abuse," Holmes' lawyers argued. One former employee says, also on the podcast, that Balwani earned the nickname "the enforcer" due to his intimidating management style. Heres how Holmes seemingly unqualified partner came to be one of the top dogs at Theranos. 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. Your Privacy Choices: Opt Out of Sale/Targeted Ads. Among the thousands of documents that were presented at Theranos founder Elizabeth Holmes fraud trial were the lovesick text messages she and Sunny Balwani, her alleged abuser, exchanged before their Silicon Valley empire crumbled around them. Joshua St Clair is an Assistant Editor at Men's Health Magazine. Cloudy. Davila didn't issue any rulings at the end of the 90-minute hearing. He bought a condo in Palo Alto, and in 2005 Holmes moved in with him. The pair hid their romantic relationship and the fact that they lived together from investors. He, like Holmes, is out on bail and expected to be sentenced in November 2022. Holmes nearly 20 years younger than Balwani testified that Balwani coached her on how to behave and speak, and pushed her to adopt a rigorous daily schedule as well as a strict diet. 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. Balwani, 57, was convicted in July on 12 counts of fraud and conspiracy after persuading investors and patients to trust the company's faulty blood testing devices. 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. Ramesh "Sunny" Balwani, right, the former lover and business partner of Theranos CEO Elizabeth Holmes, walks into federal court in San Jose, Calif., Friday, June 24, 2022. They met in Beijing before Holmes' freshman year in college. They discussed the result he would get and how he wanted to write 'something negative'. 01:59 GMT 04 Jan 2022. Lying swollen. Kate Storey is a Writer-at-Large for Esquire covering culture, politics, and style. She'd reportedly first met him during a college trip to Beijing when she was 18. His nearly 13-year ordered term is even longer than what Elizabeth Holmes received. David Paul Morris/Bloomberg via Getty Images, Bad Blood: Secrets and Lies In aSilicon Valley Startup. 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. pic.twitter.com/W7AmOD6UY0, Copyright 2023 NBCUniversal Media, LLC. Balwani says he gave her a $12-14 million loan. Both Holmes and Balwani seemed to be complicit in misleading investors and the public about Theranos's blood-testing capabilities. The judge did not want their trials to run at the same time. In addition to 135 months in prison, Holmes was ordered to serve three years of supervised release after the sentence. Elizabeth Holmes was found guilty on four out of seven counts of criminal fraud against investors, and was sentenced to federal prison for 11 years and three months. 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 . ", The memorandum continued: "There are truly evil people in this world who take pleasure in defrauding vulnerable people. Get this delivered to your inbox, and more info about our products and services. David Paul Morris | Bloomberg | Getty Images, sentenced to more than 11 years in prison. Court testimony revealed that in 2013, Balwani and Elizabeth created an LLC to purchase a $9 million, five-bedroom, seven-bathroom home based . He told me that I didnt know what I was doing in business, that my convictions were wrong, that he was astonished at my mediocrity and if I followed my instincts, I was going to fail, Holmes claimed. And upset with me for not doingeverything you wanted me to do.'. It was a good-faith loan.". 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. 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. At 19, Holmes dropped out of college to start Theranos. Heres What To Know. Updated: Oct 12, 2022 / 10:04 AM PDT. During her trial, Elizabeth accused Sunny of emotional and physical abuse, which he has since denied. "Kill the old Elizabeth," Balwani purportedly told her. They kept their relationship a secret from Theranos staff and investors as well as the public. (Balwani will face the same charges and potential sentencing as Holmes.). At that point, Balwani and Holmes had been living together since 2005; they first met on an exchange program to China through Stanford University in 2002. We may earn commission from links on this page, but we only recommend products we back. Restitution will be decided at a later date. Prosecutors argued that the extent of the fraud and the need to "promote respect for the law" merit a prison term of 15 years. David Paul MorrisGetty Images After working at companies like Microsoft and Lotus, Sunny made his. But Holmes and Balwani had a long-term romantic relationship, Holmes later testified. It would also be far larger that than the $120 million loss estimate that Davila used in calculating Balwani's prison sentence. That's because Balwani, 57, is scheduled to report to prison in Lompoc, California, on March 15. The . Former Theranos executive Ramesh Sunny Balwani has returned to federal court in a last-ditch attempt to stay out of prison while he's appealing a jurys verdict convicting him of orchestrating a blood-testing hoax with his former boss and lover, Eliz SAN JOSE, Calif. -- 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 convicting him of orchestrating a blood-testing hoax with his former boss and lover, Elizabeth Holmes. In 2017, the company came under investigation by the SEC. Federal prosecutors indicted Balwani and Holmes in 2018, the same year Holmes agreed to forfeit control of Theranos. The request came after Holmes took the stand in her own trial and accused Balwani of abuse and blamed him for Theranoss collapse. Prosecutors. On Sept. 6, Holmes filed a petition for a new trial based on the reliability of testimony provided by former Theranos lab director . Turn on desktop notifications for breaking stories about interest? In over 28 years of practicing law, as both a federal prosecutor and a defense attorney, I have never seen a case like this one, where the government brings a criminal prosecution against a defendant who obtained no financial benefit and lost millions of dollars of his own money, attorney Jeffrey Coopersmith told Vanity Fair in 2018. Former Theranos COO Ramesh "Sunny" Balwani was convicted on fraud-related charges in federal court last week. 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. After meeting when Holmes was in China for Stanford's Mandarin program in 2002 . Holmes, 38, also is seeking to remain free on bail while she appeals her conviction on four counts of fraud and conspiracy. Data is a real-time snapshot *Data is delayed at least 15 minutes. "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. 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. Ramesh "Sunny" Balwani, the former lover and business partner of Theranos CEO Elizabeth Holmes, arrives at federal court in San Jose, Calif. on Dec. 7, 2022. Juries in the trials of Elizabeth and Sunny concluded that both misled investors, per WaPost. Mr. Who Is Elizabeth Holmes' Husband, Billy Evans? 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.. In November, disgraced Theranos founder Elizabeth Holmes was sentenced to 11 years in prison after a jury found her guilty of fraud for lying to investors about her company's technology, which she claimed could test for hundreds of diseases with a few drops of blood. The account, part of Holmes' defense in a fraud case, kicked off a series of questions about her relationship with her former boyfriend and chief operating officer, Ramesh "Sunny" Balwani, a. Balwani is scheduled to be sentenced in federal court in San Jose on Dec. 7. Where the Cast of 'Boy Meets World' Is Now, Don't Despair, But 'The Last of Us' Is Nearly Over, 'The Last of Us' Season 2 Might Start Filming Soon, Facts You Didn't Know About That '70s Show, The Cast of 'The Mandalorian' in Real Life, 'The Mandalorian' Season 3, Episode 1 Recap, 'The Mandalorian' Season 3 is About to Commence. A hearing on his request was held earlier this month, but Davila . 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. ", Although Holmes and Balwani both touted the technology as able to run more than 200 blood tests based on a single drop of blood, prosecutors said, the evidence showed that at most the Theranos system could provide results only for 12 types of blood tests, and those only "with serious accuracy problems. #Update: Prosecutors ask for a 15-year prison sentence (and $803 million in restitution) for Sunny Balwani, former boyfriend of Elizabeth Holmes and COO of Theranos.He was convicted on 12 counts of fraud and conspiracy.His sentencing is December 7th. In other, previous exchanges, before the romance soured, Balwani complained about a negative internal review that was written anonymously by an employee. 'I am not leaving until we break even. She admits they kept the relationship from investors. Where Is Murdaugh Murders Buster Murdaugh Now? "Once we started working together it was a very intense relationship and that romantic piece that was there at the very beginning died," Holmes said during her deposition. Several of the newly unsealed documents relate to the successful efforts by Holmes's ex-boyfriend, Ramesh "Sunny" Balwani, to separate his trial from hers. 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. Damage can come in the form of economic harms as much as it can come in the form of violent harm," Volkar said. Ramesh "Sunny" Balwani (born c. 1965) is an American convicted fraudster, businessman and former president and chief operating officer of Theranos, which was a privately held health technology company founded by his then-girlfriend Elizabeth Holmes.He was the second most important figure in the collapse of Theranos and its fraudulent claims to investors, that they had devised a revolutionary . On Dec. 7 in San Jose, California, Federal District Judge Edward J. Davila sentenced Sunny to nearly 13 years in prison, according to The Washington Post. Holmes was then 19 and attending Stanford Universitys Mandarin program, which was held over the summer before the start of the school year. 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. Why hurting myself? 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. She has a masters degree from American University, lives by the beach, and hopes to own a teacup pig and taco truck one day. They were both students18-year-old Elizabeth was on a language-immersion trip with Stanford University, while 37-year-old Sunny was pursuing his MBA at the University of California, Berkeley, per Refinery29. Balwani left Theranos abruptly in 2016. "I am responsible for everything at Theranos," Balwani said in a message to Holmes. 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. In 2015, the company came under scrutiny. The company was operating on a loss and Balwani didn't want to leave until they recouped some money. And, the Securities and Exchange Commission filed four claims against him for violating the U.S. Securities Act. Here's the lowdown on Balwani and how he fits into the never-ending Theranos scandal. 2023 CNBC LLC. Sign up for free newsletters and get more CNBC delivered to your inbox. But how did it get to that point? The two sides also painted radically different pictures in their arguments about whether Balwani should be allowed to remain free during his appeal. A key part of Holmes defense has been shifting blame to Balwani, 56, who Holmes claims abused her physically, emotionally and sexually. On July 7, 2022, Balwani was found guilty of all 12 counts of defrauding both investors in Theranos and patients who received blood tests using Theranos' equipment, as reported by The New York Times - 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. 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