Apart from overseeing arguments about Balwani’s try to delay the beginning of his practically 13-year jail sentence, U.S. District Choose Edward Davila additionally heard a vigorous debate about how a lot cash Balwani ought to pay buyers and sufferers duped by the Theranos blood exams that by no means labored as promised. The deceit resulted in Balwani’s conviction on 12 counts of fraud and conspiracy.

Davila didn’t problem any rulings on the finish of the 90-minute listening to. His determination on whether or not Balwani can stay free on bail whereas he appeals his conviction, nevertheless, is more likely to come quickly. That’s as a result of Balwani, 57, is scheduled to report back to jail in Lompoc, California, on March 15.

The decide mentioned he doesn’t anticipate to determine on the query of how a lot Balwani ought to pay in restitution till one other listening to on the identical points is held for Holmes, Theranos’ disgraced CEO, on March 17.

Holmes, 38, is also searching for to stay free on bail whereas she appeals her conviction on 4 counts of fraud and conspiracy. She is scheduled to report back to a jail in Bryon, Texas, on April 27 to start a sentence of greater than 11 years.

In Friday’s listening to, considered one of Balwani’s legal professionals sought to deflect the blame for Theranos’ eventual collapse to Holmes. In her presentation, Amy Walsh asserted Theranos nonetheless had $350 million in money and mental property price about $100 million in Could 2016 when Holmes fired Balwani as the corporate’s chief working officer and ended their romantic relationship.

“When he walked out the door, the corporate was extraordinarily priceless,” Walsh mentioned in Balwani’s protection.

Davila appeared skeptical of that rationale, asking Walsh: “Are you saying his conduct was fully divorced from Theranos’ demise?”

Federal prosecutors are searching for a courtroom order that may saddle Balwani with a restitution invoice of practically $900 million — a determine that may probably be largely symbolic. It will even be far bigger that than the $120 million loss estimate that Davila utilized in calculating Balwani’s jail sentence.

Prosecutor Robert Leach brazenly scoffed at Walsh’s rivalry that Balwani ought to owe nothing, calling it a “exceptional place.”

The 2 sides additionally painted radically completely different photos of their arguments about whether or not Balwani needs to be allowed to stay free throughout his attraction.

Balwani lawyer Mark Davies alleged that authorities misconduct within the presentation of proof throughout Balwani’s trial makes it probably he’ll prevail within the attraction of his convictions. However federal prosecutor Kelly Volkar repeatedly denied any wrongdoing.

Davies additionally burdened Balwani’s compliance with all bail necessities since he was indicted in 2018 as proof that he isn’t a flight danger. The lawyer additionally pointed to Balwani’s non-violent historical past and previous charity work in India as proof he poses no hazard to the group.

Volkar urged Balwani might have extra incentive to flee together with his prolonged jail sentence now lower than a month away and argued he stays a possible menace.

“Injury can come within the type of financial harms as a lot as it will possibly come within the type of violent hurt,” Volkar mentioned.

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