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Elizabeth Holmes surrenders to federal prison in Texas to begin 11-year sentence for Theranos scandal
Elizabeth Holmes surrenders to federal prison in Texas to begin 11-year sentence for Theranos scandal
Elizabeth Holmes has surrendered to a federal prison in Texas to begin her 11-year sentence over the Theranos scandal which rocked the high-flying tech world of Silicon Valley. The 39-year-old disgraced tech entrepreneur reported to Bryan, the minimum-security federal prison camp in Texas, on Tuesday after exhausting all remaining legal avenues to cling onto her freedom. Holmes was convicted in January 2022 of four counts of fraud and conspiracy for lying about the capabilities pf her biotech company’s blood testing technology and conning investors out of millions of dollars. She was sentenced to 11 years and three months in prison and ordered to pay $452m in restitution to investors – including $125m to media mogul Rupert Murdoch. Holmes had been given until 2pm local time to surrender to the prison camp where she will see out her 11-year sentence surrounded by other white-collar, non-violent female offenders. Her two children – two-year-old William and three-month-old Invicta – will be allowed to visit their mother in the facility. The prison camp, which runs a work-focused program where all inmates are required to hold a job for at least 90 days, is a marked difference from Holmes’ life years earlier when she was seen as the darling of Silicon Valley. The saga began two decades ago when Holmes dropped out of Stanford University in 2003 at the age of 19 to found Theranos. The blood lab company aimed to develop medical devices that could diagnose hundreds of diseases and medical conditions with just a pinprick of blood. Over the next 10 years, Theranos boasted about its capabilities to transform the healthcare industry and grew to a value of $9bn, attracting investments from the likes of Murdoch, former Education Secretary Betsy DeVos and the heirs to the Walmart fortune. The company amassed an influential board of directors including former presidential cabinet members George Shultz, Henry Kissinger and James Mattis. Holmes, meanwhile, was catapulted onto magazine covers and became heralded as the next Steve Jobs while her personal fortune reached $4.5bn. But the technology didn’t do close to what Holmes claimed it could. In 2018, Holmes – Theranos CEO and founder – and Ramesh “Sunny” Balwani – Theranos chief operating officer and Holmes’ live-in romantic partner – were both indicted on fraud charges and the company was dissolved. She was allowed out on bail and while awaiting trial – which was stalled due to the Covid-19 pandemic – Holmes became pregnant with her first child with her partner, hotel boss Billy Evans. She became pregnant with her second child following her conviction. During her trial, Holmes sought to paint a picture that she had simply been under the control of Balwani, 57, and that she never intended to mislead investors about the technology’s capabilities. The jury didn’t buy it and she was convicted of four counts, which could have landed her with up to 20 years’ prison time. Balwani was also convicted of 12 counts of fraud and conspiracy at his trial and was sentenced to 13 years in federal prison. He began serving his sentence in Southern California last month. Since her conviction, Holmes has fought to stay out of prison claiming that she was treated unfairly by prosecutors during trial and that she should be allowed to remain out of prison while she appeals the conviction. An appeals court denied her request and said she must report to prison where she can continue to appeal her conviction behind bars. She asked the judge that she be allowed to remain free through Memorial Day weekend so that she could sort out childcare for her two children, before surrendering to authorities on 30 May. Weeks before beginning her sentence, Holmes admitted that she had made “many mistakes” in a new interview with The New York Times. “I made so many mistakes and there was so much I didn’t know and understand, and I feel like when you do it wrong, it’s like you really internalise it in a deep way,” she said. Read More Elizabeth Holmes news – latest: Theranos founder to surrender to Texas prison today to begin 11-year sentence As Elizabeth Holmes heads to prison for fraud, questions remain about her motives Elizabeth Holmes requests May 30 as new date to report to prison after losing her bid to remain free
2023-05-31 01:55
US auto union chief calls on 7,000 more members to strike
US auto union chief calls on 7,000 more members to strike
The biggest US automobile workers' union, UAW, called on 7,000 more members to join an already major strike against the top three...
2023-09-29 23:17
Burger King® Brings the Fire (and Ice) This Summer With the Launch of New Fiery Nuggets and $1 Frozen Fanta® Kickin’ Mango
Burger King® Brings the Fire (and Ice) This Summer With the Launch of New Fiery Nuggets and $1 Frozen Fanta® Kickin’ Mango
MIAMI--(BUSINESS WIRE)--Jun 12, 2023--
2023-06-12 20:46
Are you confronting a big medical bill? Attack it with a plan — and these tips
Are you confronting a big medical bill? Attack it with a plan — and these tips
An enormous medical bill can trigger a wave of panic, but experts say patients should attack the problem with a plan
2023-07-02 20:48
Argentina to Buy Lithium from Livent for Battery Production
Argentina to Buy Lithium from Livent for Battery Production
Argentina will buy locally-produced lithium from US company Livent Corp. to produce cells and batteries in a new
2023-07-02 07:55
Evergrande Creditors Demand Controlling Stakes in New Proposal
Evergrande Creditors Demand Controlling Stakes in New Proposal
A group of offshore creditors to China Evergrande Group is demanding controlling equity stakes of the property developer
2023-12-01 17:56
IPhone Maker Foxconn Aims to Double India Investment, Employment
IPhone Maker Foxconn Aims to Double India Investment, Employment
Apple Inc. partner Foxconn Technology Group plans to double its investment and employment in India, highlighting an accelerating
2023-09-18 10:23
The Diamond World Takes Radical Steps to Stop a Pricing Plunge
The Diamond World Takes Radical Steps to Stop a Pricing Plunge
When the world’s most important diamond buyers arrived at De Beers’ offices in Botswana late last month, they
2023-11-11 21:22
Panama's leader calls for referendum on mining concession, seeking to calm protests over the deal
Panama's leader calls for referendum on mining concession, seeking to calm protests over the deal
Protests in Panama have extended into a second week over a long-term copper mining concession for a Canadian company
2023-10-31 08:51
Climate finance summit wraps up eyeing bigger progress
Climate finance summit wraps up eyeing bigger progress
A global summit seeking to overhaul the international financial system wraps up Friday after taking small steps towards easing the debt burden of developing nations weighed...
2023-06-23 09:58
Russia Raises Rates for First Time Since Invasion Aftermath
Russia Raises Rates for First Time Since Invasion Aftermath
Russia raised interest rates for the first time since emergency measures taken after the invasion of Ukraine almost
2023-07-21 19:49
Fed Saw ‘Significant’ Inflation Risk That May Merit More Hikes
Fed Saw ‘Significant’ Inflation Risk That May Merit More Hikes
Federal Reserve officials at their policy meeting in July largely remained concerned that inflation would fail to recede
2023-08-17 04:49