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Theranos founder's sentencing delayed over alleged prosecutor misconduct

Theranos founder Elizabeth Holmes' October sentencing for wire fraud is delayed after a judge agreed to hear evidence about alleged prosecutor misconduct. File photo by John Angelillo/UPI | <a href="/News_Photos/lp/428f2730d241ab40598da20c25bbec8a/" target="_blank">License Photo</a>
Theranos founder Elizabeth Holmes' October sentencing for wire fraud is delayed after a judge agreed to hear evidence about alleged prosecutor misconduct. File photo by John Angelillo/UPI | License Photo

Oct. 3 (UPI) -- A judge has agreed to delay this month's sentencing of Elizabeth Holmes, the founder of failed blood-testing startup Theranos, to hear evidence about alleged prosecutor misconduct.

U.S. District Court Judge Edward Davila pushed back Holmes' sentencing hearing Monday, originally scheduled for Oct. 17, and instead will hold a "limited" evidentiary hearing that day.

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Holmes, who was convicted on four counts of fraud in January, could see her sentencing pushed into next year. She faces a maximum of 20 years in prison, plus a fine of $250,000, for each count.

Holmes' attorneys requested a new trial last month, after former Theranos lab director Adam Rosendorff allegedly expressed regret over his testimony during the trial, saying the government tried to make everyone "look bad."

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According to the court filing, Rosendorff went to Holmes' home in August where he spoke to her business partner Billy Evans, who relayed the exchange to defense attorneys. Rosendorff, one of the prosecution's star witnesses, has since submitted a sworn statement standing by his testimony.

The judge called the accusations against federal prosecutors "limited but serious," saying he will question Rosendorff since the "allegation is the possibility that the government may have engaged in misconduct."

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"The court takes that seriously," Davila said.

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"What the court wants to know is, Dr. Rosendorff, do you feel the government manipulated you in the preparation or in any way in regards to your testimony?" Davila said when speaking about what the evidentiary hearing will cover. "What I want to know is, did you tell the truth?"

In January, 12 jurors found Holmes guilty on three counts of wire fraud and one count of conspiracy to commit wire fraud. She was acquitted on four other counts, while a mistrial was declared on three additional counts of wire fraud.

Prosecutors said Holmes made false and misleading statements to investors about developing a device that could run a full range of blood tests with only a finger-prick sample.

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Holmes' attorneys claimed she never had any intention of defrauding investors in the high-profile startup.

Theranos dissolved in September of 2018, shortly after Holmes was indicted along with former Theranos President and Chief Operating Officer Ramesh "Sunny" Balwani.

Balwani, who was also Holmes' former romantic partner, was found guilty of all 12 counts of fraud charges in July. He is scheduled to be sentenced on Nov. 15.

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