How Can Theranos' COO Sunny Balwani Avoid Federal Prison?

A California jury found former Silicon Valley Elizabeth Holmes guilty conspiracy to defraud Theranos investors from 2010 to 2015 and three counts of wire fraud against three Theranos investors. In Holmes’ case, the loss amount now stands close to $150 million.
Holmes now faces up to 20 years in federal prison and substantial fines when the court sentences her in upcoming months.
Prosecutors filed the same charges against Sunny Balwani and Elizabeth Holmes in their 2018 indictment. Judge Davila allowed separate trials after Holmes' lawyers disclosed that her defense involved accusations against Balwani for emotional and sexual abuse during their relationship.
For Balwani, there are two ways to avoid prison or receive a lighter sentence: to win outright at trial or make a favorable plea deal with the government.
Discussion:
Elizabeth Holmes unsuccessfully tried to save herself from criminal liability for Theranos' business scandals by throwing Sunny Balwani, her former partner in business and life, under the bus.
In 2009, Balwani joined Theranos and became President and Chief Operating Officer, working closely with Holmes for about seven years. According to prosecutors, Balwani was a willing participant in the fraud perpetrated at Theranos from 2010 to 2015.
A significant part of Holmes' defense strategy at trial was to blame Balwani for Theranos' operational failures and accuse him of physical and mental abuse.
Balwani's Defenses:
Now that Holmes has been convicted, what can Balwani do to defend himself and avoid prison? Who can he blame?
Balwani Will Blame Holmes.
First, in all likelihood, Balwani will return the favor and blame Holmes as the person who actually made direct misrepresentations to Theranos' largest investors. After all, Holmes is now convicted.
But witnesses from inside Theranos will testify that Balwani was an integral part of the secretive culture of lies at Theranos, where Balwani and Holmes quashed employee concerns and problems were hidden from the public, investors, and patients.
Balwani Will Claim He Acted in Good Faith/Had No Intent to Defraud:
Second, Balwani, like Holmes, will also argue that he had no intent to defraud investors. Instead, Theranos suffered multiple business failures. The company believed in the start-up's blood-testing technology, but the technology needed more time to develop.
Balwani Can Argue That Business Failure is not Fraud:
Third, Balwani’s team will try to sell a narrative that Holmes could not sell to her jury: that all together, what occurred at Theranos amounts to business failure, not fraud.
A Plea Deal?
It is not too late for Balwani to consider striking a plea bargain with the government in exchange for a lighter prison sentence.
Although rare, prosecutors and defendants can enter into plea negotiations not just before trial but even after a criminal trial is underway.
Obviously, Balwani could have offered to plead guilty and cooperate against Holmes before Holmes' conviction. That opportunity is lost, so Balwani is not in the strongest negotiating position.
Balwani’s Likelihood of Success at Trial
A plea deal makes a lot of sense for a defendant like Balwani, who faces a substantial risk of being convicted at trial.
Assuming most of the witnesses in the Holmes trial retake the stand against Balwani, his lawyers know precisely what to expect. This is an advantage for Balwani, to have seen the details of the government's case in the Holmes trial and be able to confront witnesses and undermine them with their prior statements.
A juror from Holmes' trial explained why the charges of defrauding patients did not stick against Holmes. The jury thought Theranos’ labs were lacking, but a patient's testimony that she got a false positive HIV antibody result did not sway them. The jury decided to acquit Holmes on all four counts of fraud against patients because Holmes was one step removed from patients, so they disagreed that Holmes directly defrauded patients.
One additional risk for Balwani is that Holmes could possibly cooperate with the government to mitigate her own sentence. Holmes’ sentencing will likely take place after Balwani’s trial, opening up the possibility that theoretically, Holmes could be a witness against him. We do not know whether the government would be interested in this scenario.
Conclusion
There is still plenty of time for Balwani and the government to reconsider their strategies and enter into plea bargaining talks. For Balwani, this may be his best chance to accept responsibility, show remorse, avoid the trial penalty, and obtain a lighter sentence.
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[@derekcho2312]

Can you please address the despicable behavior of David Boies and heather King?

[@ObsidianLife]

You know...it was despicable but that's who Boies IS. The guy was Harvey Weinstein"s lawyer and EVERYONE in Holywood knew what he was like. Heather King is also a turd, but she was following Boies' lead.

[@DaRyteJuan]

Honestly, I hope Balwani remains defiant so he can be thrown in the slammer just like Holmes. He strikes me as being this arrogant. And he was abusive to the Theranos employees.

[@skatergurljubulee]

The opening sentence is this video is emaculate. Fr ✨👌🏿✨ As a first time viewer, I was not expecting it!

[@internetpolification]

I love this channel. A real insight into the US legal system from the U.K.

[@WhiteCollarAdviceOfficial]

Thank you very much for sharing. I am pleased to know you find value in the work!! Happy New Years...

[@SammyNeedsAnAlibi]

Do you have any channels like this in the UK? I'm sure I'm not alone that we'd love to watch them to learn about how your Justice system works.

[@aprilMichelleXJRL]

Oh for sure

[@amyturbiner6364]

You are right that it may take time for someone to feel the remorse. It took my dad a while but he got there and it really helped the healing. Your insights are different and really appreciated. Happy New Year.

[@WhiteCollarAdviceOfficial]

Yes, it may take some time, but in the end, most defendants who made bad choices gets there, like your awesome dad! Good to hear from you. Brad and I talk about you and your family often.

[@whitewave16]

I just watched "Operation Varsity Blues" in Netflix and saw that you are one of the interviewees! Go you! All the best to your consultancy.

[@WhiteCollarAdviceOfficial]

Thank you so much! Working on another film project now that will be out next year. Best to you as well!!

[@MyJunkyard]

Wasn't he the one trying to either stop or slowdown too much publicity exposure with false statements at some point?

[@SammyNeedsAnAlibi]

I totally agree with you- if, and that's a BIG IF, she can torpedo Balwani, then she will probably do so to save her own ass. Makes perfect sense to me.

[@samfungccim]

I agree that she should still cooperate with the government to point out Sunny's crime so the judge can reduce her sentence due to such help, resulting Sunny got 10 years and she got 5!

[@andhisband]

That's not going to happen. Sure, she'd do anything to save her own skin, but she's the big fish. The state will take its win and not dole out any more gifts to Holmes.

[@ak203]

I'm a layer with a lot of experience, though not on the criminal side. But in the context I know, your videos are first rate, thoughtful, disarmingly honest and you give great advice. Question though: many say that Davila will disregard the guidelines and give Holmes less than 10 years. With such a significant fraud, and given that the judge can consider impact on patients even if she was acquitted on those counts, how can she get off with less than 10 when the guidelines place her at 17-20??

[@GarySiloManBaker]

...she will get 2 to 3 years max.

[@Kawiboy]

Your Honesty is Palpable Justin and just amazing to hear 😉👊.. It's so rare today 🙃.. As always, appreciate your insight and content my friend 👍.. Lookin forward to this next Narcissist Mr Sonny 😝.. B well and until next time .. Old G 🙂

[@WhiteCollarAdviceOfficial]

Thank you very much. I appreciate the note. More videos coming soon!

[@nicholamc2629]

Excellent vid thank you! 🙌

[@WhiteCollarAdviceOfficial]

Thank you!!

[@nicholamc2629]

@@WhiteCollarAdviceOfficial You are so welcome. I appreciate and love your humility. That can only come with f****** up big time. I can identify with that. 😂❤️

[@bettyboop-xg6jo]

So what is the difference then between Adam Neumann, who tanked wework, walked away with a billion, and Balwani and Holmes.

[@k.d.r.]

great job!

[@WhiteCollarAdviceOfficial]

Great job to you as well! Grateful for your contributions to our team.

[@chemcjm8]

What clowns Justin. All they had to do was cooperate and plead out. 5-7 years tops. Now 10 plus years imho. I just dont get it.

[@brucespurier7535]

Great advice for Balwani. I really hope he goes the usual way, and does not listen to it and gets hammered, as he deserves. I also hope Holmes does not cooperate with the govt and get a lighter sentence for it. I predict that if she does not help in the Bulwani prosecution, she will get something between 2-3 years. If she does, I predict she will get 1 year or less. I HOPE that if she continues to display zero remorse and refuses to testify against Bulwani, that she gets 10-15 yrs. I hope Bulwani gets at least that much also.

[@NPak-cw1ny]

Ramesh Balwani is going to prison for at least 20 years, no more tikka masala.

[@vargheseabraham2154]

This channel has amazing content !

[@brucespurier7535]

Your own experience as a stockbroker is exactly why I have never, and will never, use a full service brokerage house. The goals of that kind of broker and the individual client far too often are not aligned, and guess whose goals supersede the other. I am sure there are plenty of good, honest ones out there, but the chance of someone finding that one and avoiding the other kind make it far too risky. This is one of those things where self-stufy and self-education is very useful.

[@timspencer8841]

Great info as always..The only negative..your kind of nonchalant about working. Get out there. Work..With all due respect Justin, Easier said then done. I interviewed at 4 or 5 places, and each time at background check time, they were thanks but no thanks. Actually a couple said they would hire me after the case, but not pending. To much risk. I even tried to volunteer at one place and they said no. lol Thats my only feedback on that subject. Not whining , just being matter of fact.

[@WhiteCollarAdviceOfficial]

I love the message. Thank you for contributing. Even if you cannot find work, sharing evidence that you have applied and are looking for work is also very helpful. Your effort matters, but you must document it.

[@beachbum1523]

@@WhiteCollarAdviceOfficial I'm not a potential client, Justin, but I think Tim Spencer touched on a point that I would like to see you discuss. I would like to see a vid about pursuing employment after jobs and careers have been lost. White collar offenders and those who are working their ways through the criminal justice system often have considerable education and intellectual capital, but many doors are closed to them. So, how do white collar offenders use those tools to re-enter the workforce doing something more than driving for Uber, Lyft, and other lame "side gigs"? (side gig: employment "opportunities" that require workers to work as independent contractors while paying out of their own pockets to scratch out just enough money to live out of their cars)

[@rayray9504]

It’s really outrageous that a convicted criminal and fraudster wasn’t immediately taken into custody. What was the judge thinking? I just hope she doesn’t flee.

[@Dwightstjohn-fo8ki]

Unlike G. Maxwell and many off shore people I know personally, I don't think Holmes has five Passports from four different countries in three different names. She's stuck in America.

[@stevesteve7175]

She should be in jail, period.

[@tbforester]

Costanza is my fave Seinfeld character. Bravo.

[@WhiteCollarAdviceOfficial]

Thank you! Me too…

[@raptureready5004]

Sonny Balwani had 18 million dollars. Now he goes to prison today. Enormous mistake.

[@jjohur]

How many people admit in trial that they are guilty … prob not many! I doubt his attorney would advise him of that strategy unless they negotiate to avoid a trial.

[@WhiteCollarAdviceOfficial]

Yes, that’s my point: if his goal is to avoid prison or get a shorter prison term, this is the time to make it happen-not during his trial in March.

[@louiselanthier5135]

Interesting cases!

[@derekcho2312]

Another question... please talk about her possible restitution plan. My 2 cents... I see her being on probation for a long dam time, cuz cant get off probation without paying restitution. Also.. bought your book, has real world advice in it

[@thewilliamlivolsi]

Three points; 1.There will be a significant forfeiture imposed by the government. It may have already been put in place. 2. Restitution will be collected while she is incarcerated, 3. She may already be negotiating for a significant restitution payment before sentencing.

[@arthurtreibs4174]

SUNNY WILL NOT, I REPEAT, WILL FRIGGIN' NOT, GET THE SYMPATHY OF A "WEAK" YOUNG MOTHER.....he he he he he he

[@froggreen2067]

Wow, interesting. Would taking the blame help Mrs. Holmes as a side effect?

[@WhiteCollarAdviceOfficial]

It would not, no. If anything, it would hurt.

[@totaloutlanderobsession8013]

People with no soul never take the blame for anything they do. But karma may get them eventually.

[@askyalumumba3573]

Unfortunately, Balwani is too arrogant to admit his guilt.

[@redmed10]

Well she's winning over sunny as regards guilty counts and will probably get a shorter prison then him now.

[@jessicasa211]

If I was Sunny I would flee to China or Taiwan instead of doing 13 years in prison. Regardless that it is minimum or not, prison is prison. Especially since he is a millionaire and living large for most of his life and adapting to prison life will be extremely hard for him and Holmes. He has to share a cell with 1-3 other inmates and will be told when to sleep and when to get up is something he will never get used to. The worst part is he won't have any privacy going using the bathroom is a punishment of its own. He will have to do at least 85% of the 13 years in prison so that will be around 11 and a half years if he doesn't join a gang or start a riot then that's the least he will have to do. With his age at 58 years old that is a death sentence because you will age much faster in prison. I will make a run for it and catch me if you can. What did he get to lose? He will most likely die in prison due to stress anyway

[@js11238]

Hope the judge in Balwani trial is not Vandelay

[@WhiteCollarAdviceOfficial]

Same Judge as Holmes: Judge Davilla

[@davefoc]

It was never released where Holmes was getting the money for her defense but presumably it was from her husband and perhaps some left over grift from Theranos. But Balwani might be paying for his own lawyers. Part of doing things differently would be to immediately stop funding lawyers for an I'm innocent defense. Some of the money saved could be used to reimburse the investors with at least a symbolic amount. As you say he should admit his guilt and he should voluntarily cooperate against Holmes. But he should do that as part of a total honesty approach. Making up nonsense about Holmes would be transparently bogus like the nonsense she made up about him. It is always tempting to go for broke and play for the big win. But sometimes the odds are too long and it's time to cut your losses. That's where Balwani is now. His lawyers, may not be in the most unbiased position to tell him that. They are pulling in the major bucks while he still thinks he's got a shot. I have wondered how open Holmes's lawyers were with her about her chances.

[@Dwightstjohn-fo8ki]

Looking at Holmes moneyed background and fantasy reality life, I'm actually surprised her legal team didn't plead "affluenza" and a life that made fantasy a reality. If I had been on a jury I might have actually bought it. But crying abuse and throwing someone under the bus you were banging, and the clear record of her bullying and threatening behaviour?? Not going to play well. That's only worked recently in Hollywood and New York.

[@arthurtreibs4174]

WISE MAN, WHITE COLLAR BUT VERY VERY FEW PEOPLE ON THE PLANET POSSESS WISDOM, BRO.

[@richardstauffer5697]

Sunny's "ace in the hole" is.......He loaned Lizzie in Wonderland, one million dollars in 2004, to really start, before she started acquiring investments from Draper and Larry Ellison.etc., etc., and in 2009, Sunny loaned to Theranos, 12 million at no interest. But, in 2013, after the suicide of Ian Gibbons, he knew first hand, the little toy blood machine did not work! Or would work. He is not an engineer, he took the word of Lizzie that it would work, new designers came in, better technology..on and on and on. He was wealthy, but not rich before or during the process. What could he really do? But, being in Phoenix, to give that "presentation" to the Board of Supervisors, proved that he was in the "know", that the little tiny train, could not climb a mole hill. Now, if he can fix that story......Hmmmmmmmm; And all those EMAILS.....10 YEARS, 100K FINE.

[@grantstewart457]

Great comments. Please cover the 6th Jan Congress riots and Trumps culpability next

[@WhiteCollarAdviceOfficial]

Thank you for commenting and watching.

[@iamthevanavator281]

Just stumbled across your Chanel and watched this video. You mentioned Judge Wilson. If it is the same judge I’m thinking of and I believe it is, then you drew the wrong judge. I appeared a few times in front of him when I was still a member in good standing of the Bar. IMHO he was one the most insufferably arrogant a$$holes I’ve ever come cross.

[@Bugsybear2]

I don't understand how one can attempt to legitimately earn enough money to pay the investors back -- especially when there is little about her having a job in the past? And who would hire her? Please let me know because I don't understand and I'm well educated with a good job.

[@martaakh8105]

Elisabeth was played evidently by Dereks ✌️❤️😳😜🥺❤️✌️ and Sunni Balwani 🌞☃️was played supposedly by vanished chef of Nissan Ghosn.

[@tazzinnc]

Or his legal team can prove he is innocent and the prosecution is just going after him because of their weak case against Holmes. Reality is most likely he is guilty, but as some show lawyer said. It is kot about who actually did what. It is what you can convince the jury of who did what.

[@beachbum1523]

I'm going to have to respectfully disagree, Justin. Sunny Balwani has a SOLID defense. 😎 kzbin.info/www/bejne/i57dpIquhbF8hdE

[@ObsidianLife]

Balwani has that rich person’s arrogance. He was lucky enough to stumble into making a lot of money because his company was sold and then he convinced himself that it wasn’t luck, it was skill. I’d lay down money in that he’s going to do the same thing here. In the book “Bad Blood” and in evidence he shows a consistent pattern of thinking he’s smarter than everybody which is the worst and dumbest thing you can do… Especially when you’re not.

[@Rick-ls6zo]

You are encouraging him to lie. Whatever happened to telling the truth?

[@WhiteCollarAdviceOfficial]

I do a lot of things-encouraging people to lie is not one of them. If you saw the video, you’ll see I’m encouraging him to come clean and own what he did.

[@mon_avis2978]

@@WhiteCollarAdviceOfficial I'm surprised you didn't go into the probability of a plea deal in which she again throws him under the bus in exchange for lighter punishment. Honor is one of the variables in that calculation, which would have to include trying the "he abused me" excuse and the timing of her pregnancy. She's opportunistic, as you said.

[@martaakh8105]

❤️🥺❤️✌️and 🌞☃️