Holmes Says US Wrong to Suggest She Marry Partner to Pay Debts

Theranos Inc. founder Elizabeth Holmes fired back at federal prosecutors’ claim that she’s shielding family assets to avoid paying back victims of her fraud.

The government “suggests that Ms. Holmes’ sentence should be imposed based on the assumption that a private citizen uninvolved in the offense conduct (Ms. Holmes’ partner) should marry her and have his extended family pay her debts,” according to a filing by Holmes’s lawyers. “That is an unfounded suggestion.”

When Holmes is sentenced Friday in the highest-profile criminal case in Silicon Valley history, the government is urging the judge to send her to prison for 15 ...