Elizabeth Holmes, the disgraced CEO of Theranos, has surrendered herself to federal prison to begin serving her 11-year sentence for defrauding investors about the capabilities of her company’s blood-testing technology. Holmes was ordered by U.S. District Judge Edward Davila to surrender by 2 p.m. local time on Tuesday at a minimum-security facility in Bryan, Texas.
Holmes, who has two young children with her current partner, William “Billy” Evans, had attempted to stay out of prison while she appealed her conviction, but an appeals court rejected her bid, leading to her sentence.
Theranos, the company Holmes founded in 2003 after dropping out of Stanford University, was valued at more than $9 billion at its peak and attracted high-profile backers like the DeVos family and Rupert Murdoch. However, Holmes’ technology, which aimed to perform hundreds of laboratory tests with just a finger prick of blood, was ultimately proven to be faulty and unreliable.
In November 2022, a federal jury in San Jose, California, convicted Holmes on four counts of defrauding investors. The judge has also ordered her and former Theranos executive Ramesh “Sunny” Balwani to pay $452 million in restitution to victims. Balwani, who was convicted on 12 counts of wire fraud and conspiracy to commit wire fraud, is serving a nearly 13-year sentence in a prison in Southern California.
The Wall Street Journal, owned by Rupert Murdoch, first reported on irregularities with Theranos’ blood-testing machines, leading to the downfall of the company. Patients were given inaccurate test results relating to conditions such as HIV, cancer, and miscarriages.
During Holmes’ trial, prosecutors argued that she “chose fraud” over “failure.” Her sentencing marks the end of a once-promising career that turned into one of the most significant corporate scandals in recent history.
Despite the severity of her fraud, Holmes’ sentence is relatively light compared to the potential maximum sentence she faced, which was 20 years for each count. However, the judge noted that her sentence should still serve as a deterrent to others who may consider defrauding investors.
Elizabeth Holmes has begun serving her 11-year sentence for defrauding investors about the capabilities of her company’s blood-testing technology. Her sentencing marks the end of a once-promising career that turned into one of the most significant corporate scandals in recent history.
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