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Former Theranos Executive Ramesh “Sunny” Balwani Sentenced to Nearly 13 Years

On December 7, 2022, Ramesh “Sunny” Balwani, a former Theranos executive, was sentenced to nearly 13 years in prison, and three years of supervised release, for defrauding investors and patients in connection to his role in the multimillion-dollar fraud involving Theranos and its former CEO, Elizabeth Holmes. Judge Davila reserved decision on restitution and asked the parties to confer on a date for a subsequent hearing on that point.

Balwani was convicted in July 2022 of 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. Following his conviction, Balwani urged the court to sentence him to probation, arguing that he had lost millions by investing in Theranos and noting that he received only a $1 annual salary (in addition to a separate salary for his position on the Theranos board). Prosecutors, on the other hand, argued that Balwani should be sentenced to 15 years in prison and ordered to pay $804 million in restitution to Theranos investors who lost money.

Ultimately, Judge Davila found that 12 Theranos investor victims had lost a total of $120 million for the purpose of determining the appropriate sentencing guideline range.

On November 18, 2022, Judge Davila sentenced Holmes to an 11-year sentence. Holmes had been found guilty on four counts of defrauding investors in a separate trial. On...

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