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Disgraced Theranos founder Elizabeth Holmes has been sentenced to more than 11 years in a US federal prison for conning investors and endangering patients while peddling a bogus blood-testing technology.

The 38-year-old was convicted by a Californian jury on three counts of investor fraud and one count of conspiracy in January. She was jailed for 135 months.

Prosecutors were also seeking $804m (£675m) in compensation from Holmes.

The amount covers most of the nearly $1bn (£840m) she raised from a list of sophisticated investors that included software magnate Larry Ellison, media mogul Rupert Murdoch, and the Walton family behind Walmart.

Prosecutors had branded Holmes’ crimes “among the most substantial white collar offences Silicon Valley or any other district has seen”.

Pic: AP FILE - Former Theranos CEO Elizabeth Holmes arrives at federal court in San Jose, Calif., on Oct. 17, 2022. A federal judge on Friday, Nov. 18, will decide whether Holmes should serve a lengthy prison sentence for duping investors and endangering patients while peddling a bogus blood-testing technology. (AP Photo/Jeff Chiu, File)
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In her defence, Holmes said she believed her statements were accurate at the time. Pic: AP

Her legal team had urged the judge to be lenient and not make their client a “martyr to public passion”.

The sentence imposed by US District Judge Edward Davila was shorter than the 15-year penalty requested by federal prosecutors, but far tougher than the leniency her legal team sought for the mother of a year-old son with another child on the way.

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The judge said Theranos had employed “misrepresentations, hubris and just plain lies”.

Prosecutors said Holmes misrepresented Theranos’ technology and finances, including by claiming its miniaturised blood testing machine was able to run an array of tests from a few drops of blood.

The company secretly relied on conventional machines from other companies to run patients’ tests, prosecutors said.

Holmes’ remarkable rise and dramatic downfall have been the subject of a documentary and award-winning TV series.

Pic: AP
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The now-defunct firm was once valued at $9bn (£7.5bn). Pic: AP

Once valued at $9bn (£7.5bn), the now-defunct Theranos Inc promised to revolutionise how patients received diagnoses by replacing traditional labs with small machines designed for use in homes, pharmacies and even on the battlefield.

Forbes dubbed Holmes the world’s youngest female self-made billionaire in 2014, when she was 30 and her stake in Theranos was worth $4.5bn (£3.8bn).

But the start-up collapsed after a series of articles in the Wall Street Journal in 2015 questioned its technology.

At trial, prosecutors said Holmes engaged in fraud by lying to investors about Theranos’ technology and finances rather than allowing the company to fail.

Holmes testified in her own defence, saying she believed her statements were accurate at the time.

Former Theranos CEO Elizabeth Holmes, left, walks with her partner, Billy Evans, after leaving federal court in San Jose, Calif., Monday, Oct. 17, 2022. (AP Photo/Jeff Chiu)
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The 38-year-old’s partner, Billy Evans, has urged the judge to be lenient. Pic: AP

‘Played for the fool’

Though she was convicted on three counts, Holmes was acquitted on four other counts alleging she defrauded patients, who paid for Theranos tests.

The judge in the case, Edward Davila, has previously denied Holmes’ requests to overturn her convictions, saying they were supported by the evidence at trial.

Following her sentencing, Holmes can appeal.

While courting investors, Holmes put together a high-powered Theranos board that included former US defence secretary James Mattis, who testified against her during her trial, and two former US secretaries of state, Henry Kissinger and the late George Shultz, whose son submitted a statement criticising Holmes for fabricating a scheme that played Shultz “for the fool”.

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Man sets himself on fire in protest area outside Trump trial

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Iran grounds flights across country after reports of explosions

A man has set himself on fire outside the courthouse in New York where former US President Donald Trump is on trial.

The man was in the designated protest area outside the courthouse.

It comes after jury selection for Trump’s hush money trial concluded with 12 people, and six alternatives, chosen to decide whether the former US president covered up payments to women who alleged they had affairs with him.

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Donald Trump labels hush money trial a ‘mess’ after jury selected

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Donald Trump labels hush money trial a 'mess' after jury selected

Donald Trump described the hush money case against him as a “mess” after the jury who will decide his fate has been selected.

Leaving the court in New York after proceedings were adjourned for the day, Trump addressed reporters, saying he was supposed to be in states like Georgia, New Hampshire and North Carolina as part of his campaign for the 2024 presidential election.

“[But instead] I’ve been here all day,” he said, labelling the trial as “unfair”.

Trump trial as it happened: Former president looks ‘bored’ in court

Trump held up a stack of news stories and editorials that he said were critical of the case while he continued railing against the trial.

“The whole thing is a mess,” he said.

It comes as all 12 jurors have been seated in the first criminal case against a former US president.

Former President Donald Trump speaks alongside attorney Todd Blanche as they return from a lunch break in his trial at Manhattan criminal court in New York on Thursday, April 18, 2024.  (Jabin Botsford/The Washington Post via AP, Pool)
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Pic: AP

Members of the jury include a sales professional, a software engineer, an English teacher and multiple lawyers.

Sky News’ US partner network, NBC News reported there are seven men and five women on the jury.

It comes after lawyers grilled hundreds of potential jurors asking questions on everything from their hobbies and social media posts to their opinion of the former president.

More than half of a second group of prospective jurors were dismissed by Judge Juan Merchan on Thursday after most said they doubted their ability to be fair and impartial.

One juror was also dismissed after she said she “slept on it overnight” and woke up with concerns about her ability to be fair and impartial in the case.

The challenge now is to select six alternate jury members before the trial can move to opening statements, with Mr Merchan hopeful this will be completed on Friday.

Read more:
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Trump calls hush money case an ‘assault on America’

Donald Trump orders ’30 milkshakes at chicken restaurant

Trump is accused of criminally altering business records to cover up a $130,000 (£104,200) payment to adult film actress Stormy Daniels, real name Stephanie Clifford, during his 2016 election campaign.

Ms Daniels and former Playboy model Karen McDougal, who was paid $150,000 (£120,000), both claim to have had affairs with Trump.

Stormy Daniels, seen here in January, received a $130,000 payment from Trump's lawyer Pic: AP/DeeCee Carter/MediaPunch /IPX
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Stormy Daniels. Pic: AP

His lawyers say the payment was meant to spare himself and his family embarrassment, not to help him win the election.

Trump faces 34 felony counts of falsifying business records. He could get up to four years in prison if convicted.

The former president faces two other criminal trials accusing him of trying to subvert his 2020 election loss to Joe Biden, and another that accuses him of mishandling classified information after he left the White House in 2021.

He has pleaded not guilty to all charges against him.

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Boeing whistleblower claims 787 Dreamliner planes ‘defective’

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Boeing whistleblower claims 787 Dreamliner planes 'defective'

Crisis-hit Boeing has rushed to defend itself from fresh whistleblower allegations of poor practice, as the airline continues to grapple its latest safety crisis.

A Congressional investigation heard evidence on Wednesday on the safety culture and manufacturing standards at the company – rocked in January by a mid-air scare that saw an Alaska Airlines 737 MAX 9 flight suffer a panel blowout.

One Boeing quality engineer, Sam Salehpour, told members of a Senate subcommittee that Boeing was taking shortcuts to bolster production levels that could lead to jetliners breaking apart.

Money latest: How to claim for pothole damage

He said of Boeing’s 787 Dreamliner, that has more than 1,000 in use across airlines globally including at British Airways, that excessive force was used to jam together sections of fuselage.

He claimed the extra force could compromise the carbon-composite material used for the plane’s frame.

“They are putting out defective airplanes,” he concluded, while adding that he was threatened when he raised concerns about the issue.

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Boeing quality engineer Sam Salehpour testifies during the Senate homeland security subcommittee hearing. Pic: AP
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Boeing quality engineer Sam Salehpour testifies during the Senate homeland security subcommittee hearing. Pic: AP

The engineer said he studied Boeing’s own data and concluded “that the company is taking manufacturing shortcuts on the 787 programme that could significantly reduce the airplane’s safety and the life cycle”.

Boeing denied his claims surrounding both the Dreamliner’s structural integrity and that factory workers jumped on sections of fuselage to force them to align.

Two Boeing engineering executives said this week that its testing and inspections regimes have found no signs of fatigue or cracking in the composite panels, saying they were almost impervious to fatigue.

The company’s track record is facing fresh scrutiny amid criticism from regulators and safety officials alike in the wake of the incident aboard the Alaska Airlines plane.

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What’s going on at Boeing?

It has become a trust issue again after the worst period in Boeing’s history when two fatal crashes, both involving MAX 8 aircraft, left 346 people dead in 2018 and 2019.

All 737 MAX 8 planes were grounded for almost two years while a fix to flawed flight control software was implemented.

A separate Senate commerce committee heard on Wednesday from members of an expert panel that found serious flaws in Boeing’s safety culture.

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Boeing CEO: ‘We fly safe planes’

One of the panel members, MIT aeronautics lecturer Javier de Luis, said employees hear Boeing leadership talk about safety, but workers feel pressure to push planes through the factory as fast as they can.

In talking to Boeing workers, he said he heard “there was a very real fear of payback and retribution if you held your ground”.

Pressure on Boeing to focus on safety has included restrictions placed on production, limiting its manufacturing output.

At the same time, it is still facing three separate investigations by the Federal Aviation Administration, the Justice Department and the National Transportation Safety Board relating to the panel blowout.

A management shake-up announced amid the inquiries will see the chief executive depart the company by the year’s end.

Sky News has approached British Airways for comment.

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