A federal judge rejected Elizabeth Holmes’ bid for a new trial, the latest setback for the Theranos Inc. founder, who was convicted of fraud in January.
U.S. District Judge Edward Davila, who supervised Ms. Holmes’ trial, which began last year, said in a ruling late Monday that the arguments in her three motions for a new trial did not introduce substantial new evidence or establish government error, adding that a new trial was unlikely to result in an acquittal.
Mrs. Holmes is scheduled for sentencing on Nov. 18. Earlier Monday, a probation officer filed a presentence report, an investigation of Ms. Holmes’ legal and personal background.
The judge previously rejected her request for acquittal. He also rejected requests for acquittal and new trial by Ramesh “Sunny” Balwani, Ms. Holmes’ former girlfriend and deputy at Theranos, who was found guilty of 12 counts of fraud and conspiracy in a separate trial that ended in July.
Judge Davila’s dismissal of Ms. Holmes’ bid for another attempt to prove his innocence brings a saga closer to resolution that became one of the most watched white-collar cases in Silicon Valley history. Mrs. Holmes was convicted in January of four counts of criminal fraud for defrauding investors while running a yearlong scheme at Theranos, a blood-testing startup where she was chief executive. She faces up to 20 years in prison plus fines for each guilty party. Attorneys following the case have said she almost certainly will not receive the maximum sentence, based on the outcome of other white-collar prosecutions. Mrs. Holmes, who is visibly pregnant, has remained out of jail after posting bail.
Lawyers for Ms. Holmes did not immediately respond to a request for comment.
Mrs. Holmes made three motions for a new trial in September. The most significant of the requests came after an unusual meeting with former Theranos lab director Adam Rosendorff, who was also a key witness in the government’s case against her. Mrs. Holmes said in a lawsuit that Dr. Rosendorff showed up unannounced at her home on August 8 and spoke to her partner. According to the filing, Dr. Rosendorff distressed in two short conversations with Ms. Holmes’ partner and said the government had twisted his testimony and “made things seem worse than they were” at Theranos. He felt guilty about his role in her sentence “to the point where he had trouble sleeping,” according to the suit.
Dr. Rosendorff challenged Ms. Holmes’ characterization of his visit to her residence and said he was seeking closure without recanting his testimony.
The meeting prompted Judge Davila to hold a hearing last month in which he asked Dr. Rosendorff, whether his testimony at trial was truthful and whether the government had pressured him to lie. Dr. Rosendorff said his testimony against his former boss was truthful, that she needs to pay her debt to society and that the government had encouraged him to tell the truth.
“I testified truthfully and honestly at all times to the best of my recollection,” said Dr. Rosendorff at the hearing. “At all times the government encouraged me to tell the truth and only the truth.”
In his ruling Monday, Judge Davila said he found “Dr. Rosendorff’s sworn statements to be credible.”
The judge wrote: “Dr. Rosendorff’s post-trial statements are too vague and general to suggest that any specific testimony was actually false or misleading.”
Judge Davila also agreed on Monday to postpone Mr Balwani’s sentencing, originally scheduled for next week, to December 7. In his request for a later sentencing date, Mr. Balwani the limited availability of his family to attend and one of his lawyers. filed an affidavit from Mr. Balwani’s doctor, a urologist. The personal medical details were deleted.
Write to Heather Somerville at Heather.Somerville@wsj.com
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