Holmes Headed To Jail While Appealing Sentence
Elizabeth Holmes, who started the blood-testing company Theranos, has to go to prison. She is appealing her conviction for cheating investors. The startup failed. The court in San Francisco ordered her and another person to pay $452m to the people she harmed.
Holmes became famous for saying that Theranos’ tiny devices could do many health tests with only a small amount of blood. She was found guilty in a trial in San Jose, California in 2022. She was given a prison sentence of 11 years and three months.
On April 25, she asked the ninth US circuit court of appeals to stop her sentence. She had to go to prison in two days. The court said no to her bail request on Tuesday.
Holmes, aged 39, will get a new date from the judge to leave her current San Diego home and go to jail.
The judge, Edward Davila, made a decision. He said that Holmes must pay back the $452m. She has to pay with her ex-boyfriend, Ramesh "Sunny" Balwani. He was important at Theranos.
Balwani got a 13-year punishment in jail for fraud and conspiracy. He is 57. He received his verdict last July, and started his sentence in April. He tried to remain free on bail while appealing, but it didn't work. He went to a prison in Southern California.
Holmes thought Theranos could change healthcare. She said the tech could find many diseases with just a little blood.
Holmes collected almost $1 billion from investors, including Larry Ellison and Rupert Murdoch. These investors lost their money when a Wall Street Journal investigation and reviews uncovered flaws in Theranos' technology. Holmes was pursuing her ambition at the time.
Davila said Holmes and Balwani have to pay $125m to Murdoch, the highest amount among investors. They also have to pay $40m to Walgreens, who invested in Theranos and provided the blood tests. Holmes and Balwani owe Safeway $14.5m for backing out as a business partner.
The prosecutors wanted an $800 million restitution penalty, but the lawyers for Holmes and Balwani disagreed. They said their clients should not have to pay a lot, or anything at all. They made these arguments in different court hearings. The decision was up to Davila to make.
Holmes and Balwani are broke after spending a lot of money on legal fees. They say they are innocent. Before, they had a lot of money from their stake in Theranos.
Holmes's lawyers are trying to overturn her conviction. They say there were mistakes and misconduct during her trial.
They said there were mistakes and unfair acts that influenced the jury. They wanted her to wait outside of jail during the appeal. However, Davila and the ninth circuit court of appeals denied the request.
This report was helped by Reuters and Associated Press.
