Theranos founder and CEO Elizabeth Holmes was denied bail on May 16, 2023. She was ordered by a federal court to report to jail and jointly pay $452 million to victims.
Elizabeth Holmes lost her final bid to get out of prison pic.twitter.com/E6JRa1pO2v
– zerohedge (@zerohedge)
May 17, 2023
The Ninth Circuit just denied Elizabeth Holmes’ request for bail. She will begin serving a sentence of more than 11 years in prison for four counts of investor fraud while the Ninth Circuit considers her appeal. A new self-surrender date has not yet been set. pic.twitter.com/3RzBzIxIyK
– Dorothy Atkins (@doratki)
May 17, 2023
Who is Elizabeth Holmes?
Elizabeth Holmes is a former businesswoman and founder of Theranos, a now-defunct healthcare technology company. Born on February 3, 1984, Holmes gained considerable attention as a young entrepreneur who claimed to have revolutionized blood testing by developing a device that could perform a variety of tests. , including cancer detection, uses only a small amount of blood. She dropped out of Stanford University at age 19 to pursue her business.
Holmes attracted significant investment, and at its peak, her biotech company, Theranos, was valued at about $9 billion. She is famous as “the youngest self-made female billionaire”.
However, in 2015, investigative reporting by The Wall Street Journal raised serious doubts about the effectiveness and accuracy of Theranos technology, known as the Edison Device. A year later, it was revealed that her company had misled investors, patients and the public about the product’s capabilities.
Why did Elizabeth Holmes go to prison?
Subsequent investigations by various regulatory agencies found significant flaws in Theranos’s technology and testing methods. The company faced multiple lawsuits and legal actions, eventually shutting down in September 2018. Elizabeth Holmes, along with former Theranos president Ramesh “Sunny” Balwani, faced criminal charges involvement in fraud and conspiracy.
Specifically, Holmes and Balwani allegedly misrepresented the accuracy and reliability of the Edison device, claiming that it could perform a variety of tests with just a few drops of blood. However, it was revealed that the technology was flawed and produced unreliable results.
The prosecution presented evidence that Holmes and Balwani intentionally deceived investors, including prominent individuals and organizations, to provide significant capital to Theranos. They also allege that Holmes and Balwani’s false statements led to patients receiving inaccurate test results, potentially endangering their health.
The trial focused on whether Holmes intentionally deceived investors and patients, and whether she knowingly participated in a scheme to defraud. A jury ultimately convicted her of four counts of fraud and conspiracy in 2022, and sentenced her to 11 years in prison.
Holmes had previously been ordered to surrender to authorities on April 27. However, she filed a petition with the court of appeal on April 25, two days before she was due to go to prison, asking for a stay of execution for when appealing his sentence. . The Court of Appeals denied Holmes’ motion on Tuesday. In addition, Holmes and Balwani must together pay $452 million in compensation to those they defrauded. Compensation will be paid to investors who lost money in Theranos, as well as to patients harmed by the company’s inaccurate blood tests.
U.S. District Judge Edward Davila, the executor, will set a new date for Holmes to be released from prison. Balwani is currently serving a 12-year sentence.
There is also a web series about the deception and lies of Elizabeth Holmes and her associates, starring Amanda Seyfried. Watch the movie trailer here: