Theranos exec loses bid to stay out of prison
Balwani sought to retain his freedom while appealing his conviction for fraud.
Former Theranos executive Ramesh “Sunny” Balwani will head to prison this month after an appeals court rejected his bid to remain free while he contests his conviction for carrying out a blood-testing hoax with his former boss and lover Elizabeth Holmes.
After the 9th Circuit Court of Appeals issued a decision refusing Balwani’s request, U.S. District Judge Edward Davila on Friday ordered Balwani to begin a nearly 13-year prison sentence on April 20.
A lawyer for Balwani filed a motion late Thursday seeking nearly two weeks to give Balwani time to make travel arrangements and other preparations before heading to a federal prison in Southern California.
Balwani’s April 20 reporting date comes a week before Holmes, Theranos’ founder and chief executive, is scheduled to begin a prison sentence of more than 11 years after being convicted last year on four counts of fraud and conspiracy.
Holmes, 39, appeared with her lawyers before Davila last month in an effort to persuade the judge to allow her to remain free while she pursues her appeal. Davila has not yet ruled on Holmes’ request.
Davila last month rejected Balwani’s request to remain free while he appeals his conviction on 12 counts of fraud and conspiracy, ordering Balwani to report to prison March 16. Balwani avoided having to report on that date by appealing the judge’s ruling.
But three judges on the 9th Circuit Court of Appeals concluded that Balwani hadn’t provided enough compelling evidence to convince them that his conviction is likely to be overturned.
The ruling means Balwani will start serving his time at the Terminal Island prison in San Pedro, which has incarcerated several prominent figures, including gangster Al Capone in the 1930s, apocalyptic cult leader Charles Manson for auto theft in the 1950s and LSD evangelist Timothy Leary in the 1970s.
Although they had separate trials, Holmes and Balwani were accused of essentially the same crimes, centered on a ruse touting Theranos’ blood-testing system as a revolutionary breakthrough in healthcare.
The claims helped the company become a Silicon Valley sensation that raised nearly $1 billion from investors.
But Theranos’ technology never came close to working as effectively as Holmes and Balwani boasted, resulting in the company’s scandalous collapse and a criminal case that shined a light on Silicon Valley greed and hubris.
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