Thread by @scottbudman

#Breaking: Elizabeth Holmes has arrived at the courthouse for her sentencing.

#Update: We’re now inside the courtroom.
Elizabeth Holmes and several of her family members are here.
It’s more crowded than I’ve ever seen.
The crush on the way in looked like this:

#Update: We’re under way.
Judge Davila is here presiding.
Elizabeth Holmes is on her way to be sentenced after being found guilty on four charges of fraud.
#Theranos

#Update: Elizabeth Holmes is visibly pregnant.
The judge just offered to let her stay seated for the proceedings if she wishes.

#Update: The judge says probation officers recommend Elizabeth Holmes spend 9 years in federal prison.
(One of the things the judge takes into account).

#Update: Prosecuting attorney claims Elizabeth Holmes at one point wrote: "They don't put attractive people like me in jail."

That got some people shifting in their seats.

#Update: When Holmes' defense team brings up the fact that she was found not guilty of patient fraud, the prosecutor says that she knew the technology was faulty, and still put testing machines into Walgreen's stores.

#Update: Not sure if this shows how things are going for Elizabeth Holmes (and what her sentence will be), but lawyers are now debating whether Holmes displayed "a conscious disregard," or "recklessness."

#Update: Prosecutor says Elizabeth Holmes has not admitted guilt for anything that happened at Theranos.

Says she exhibits "arrogance."

#Update: The lawyers are now debating whether to apply "enhancement for being the organizer of a criminal enterprise" to Elizabeth Holmes.

#Update: Attorney for Elizabeth Holmes claims she has admitted responsibility for what happened at #Theranos.

Prosecutor retorts: "this is the kind of platitude we always hear form leaders who are attempting to do damage control after something goes wrong."

#Update: Attorney for Elizabeth Holmes: "Are these investors really victims of fraud?"

Judge: "Let me stop you there..."
#Theranos

Attorney for Elizabeth Holmes on #Theranos victims: "Who are we talking about?"

Prosecution: "Investors who invested during the time the scheme was activated."

#Update: We're now onto the "loss amount."

Prosecutors say they put it at $804 million.
Elizabeth Holmes' lawyers disagree.
#Theranos

#Update: Prosecutor on what Elizabeth Holmes should pay:

"The company was never going to succeed. Investors were trapped and unable to sell their shares. They invested hundreds of millions of dollars. The penalty should be everything they lost."
#Theranos

To further set the stage here, the courtroom is packed to the gills.
Elizabeth Holmes has been emotionless so far, looking straight ahead.
Her family is seated behind her, along with several friends.
Both sides are still trying to sway the judge.
#Theranos

Both sides have requested a break.

We’ll be back in about 15 minutes.

(I’ll be trying to charge my laptop …)

#Update: We're back in the courtroom.

During the break, Elizabeth Holmes huddled briefly with her family, then was talking (and nodding) with her attorney.

#Update: The judge gets back to business, overruling most of the objections put forward by lawyers this morning.

He points out that this case has already been litigated.

#Update: The judge says evidence shows Elizabeth Holmes was leader of the company, but not necessarily the leader of the criminal acts.

(Rare mention of Sunny Balwani here)
#Theranos

#Update: The judge rules on the money part:

Says loss from 10 investors (name checks Rupert Murdoch and Betsy Devos here) totals $384 million.

That's less than the $804 million prosecution is asking for.

A quote from the prosecution:
“One of the things that makes Ms. Holmes’ fraud remarkable is its success.”

#Update: Judge says reasonable total loss to investors:
$121 millon dollars.

The judge says he will set a date to determine what Elizabeth Holmes owes .. but that will be a later date.

#Update: We're talking sentencing now.
The judge says the "guideline calculation" is 135-168 months.

That's 11-14 years.

Lawyers now arguing.

#Update: Prosecution: "Day after day, week after week, Elizabeth Holmes chose to practice fraud to her investors. It was running out of money, because its technology did not work."

The prosecution asks for a 15 year sentence for Elizabeth Holmes, to prove "the ends don’t justify the means."
#Theranos

#Update: Prosecution says Elizabeth Holmes craved media attention and a lavish lifestyle.
Says "the attention desired by Ms. Holmes fueled the fraud."
#Theranos

#Update: Prosecutor wraps with: "When the court gives its sentence, it does the work of repairing the trust between innovators and customers. That trust was damaged by Elizabeth Holmes."
#Theranos

#Update: From Elizabeth Holmes' defense attorney: "Every great crime has a motive."

(Strange way to start the defense....)

#Update: Defense attorney continues: "Year in and year out, Elizabeth Holmes had the opportunity to become a very wealthy woman. Hundreds of millions of dollars. Year after year, she declined the offers."

(Talking here about #Theranos stock sales.)

#Update: Elizabeth Holmes' defense attorney goes on to say that #Theranos had good interntions, to help people with technology.

"...to put her in a category with Enron or Worldcom is not fair."

#Update: Defense says Elizabeth Holmes was, at many times, "let down by her support network," hinting at abuse claims she made against former partner Sunny Balwani.
#Theranos

#Update" Defense talks about possible harm done to Venture Capital space if Elizabeth Holmes is given a long sentence.

***I can weigh in here: The great majority of Silicon Valley VCs avoided investing in #Theranos.

#Update: Elizabeth Holmes defense wraps: "This is an individual that, going forward, will do good."

Points out that Holmes is a nice and considerate person.

#Update: The court is stirring.

Alex Shultz says he's a victim and will speak.
His father was George Shultz (Theranops investor)
His son is Tyler Shultz (former Theranos employee).

He looks directly at Elizabeth Holmes, and speaks:

Alex Shultz says (looking at her) Elizabeth Holmes "hired a private investigator to follow my son."

"My son slept with a knife, because he was afraid of being killed."

Alex Shultz says the Theranos experience "was grueling. I felt like my family home was desecrated."

"We said a prayer for Tyler, that he could tell his grandfather everything he knew" about Theranos.

Alex Shultz, voice shaking, recalls Theranos lawyers coming into his house "without Tyler having any way to represent himself."

"Home should be a safe place for the family, right?"

Alex Shultz is still addressing Elizabeth Holmes directly.

The court is silent.

Says, "there's a lot of talk about Sunny and Elizabeth. From my family's perspective, Elizabeth is their Sunny Balwani. She took advantage of my family."

Alex Shultz: "My wife and I are, finally, happy that this is coming to an end."

#Update: A women stands up and says "I'm a cancer patient. Elizabeth Holmes promised - "

The judge gently points out that he read her letter.

She says "thank you."

#Breaking:

Here we go.
Elizabeth Holmes steps up to speak.

Holmes is crying.
"Thank you for the chance to speak. I'm grateful for this chance."
"I stand before you taking responsibiliy for Theranos. It was my life's work."

Elizabeth Holmes (through tears): "I am devastated by my failings. I have felt deep pain for what people went through, because I failed them."

"To investors, patients, I am sorry."

Elizabeth Holmes: "I regret my failings with every cell of my body."

Quotes a poem: "Yesterday I tried to change the world. Today I'm wise, and want to change myself."

Holmes wraps up with a tearful, "thank you."

#Breaking: Judge Davila is about to announce the sentence for Elizabeth Holmes.

Judge: “This case is troubling on so many levels. What went wrong? This is sad because Ms. Holmes is brilliant.”

Judge: “Failure is normal. But failure by fraud is not OK.”

Judge: “We know by the texts with Mr. Balwani that there was conspiracy.”

THE TEXTS!!!!

Judge: “What is the pathology of fraud? Is it the inability to accept responsibility? Perhaps that the cautionary tale to come from this case.”

#BREAKING: Elizabeth Holmes has been sentenced to 11.25 years.

…it will be followed by 3 years of supervised release.

Holmes will be required to self surrender at a later date.

#Breaking: The court is silent.
Elizabeth Holmes tearfully hugs her family.

#Update: Elizabeth Holmes has been ordered to surrender on April 27th.