Elizabeth Holmes, the founder of Theranos, has commenced her 11-year prison sentence at a federal prison in Bryan, Texas, marking a remarkable downfall for the once-celebrated biotech entrepreneur who captivated Silicon Valley with ambitious promises of revolutionary blood-testing technology.
A spokesperson for the minimum-security prison confirmed to Yahoo Finance that Holmes arrived on Tuesday, officially becoming inmate number 24965-111 in the Bureau of Prisons register.
The now 39-year-old Holmes was convicted in January of last year on multiple counts of fraud, although she was acquitted of charges related to defrauding Theranos patients. San Jose federal district court judge Edward Davila, who oversaw Holmes’ case, sentenced her to 11 years and three months in prison. He rejected Holmes’ request to remain free on bail during her appeal process in the 9th Circuit Court of Appeals, a request that was also denied by the appeals court itself.
Holmes’ prison sentence amounts to approximately 14% of the maximum allowable time under U.S. sentencing guidelines for her four fraud convictions, which could have resulted in a sentence of up to 80 years. Each conviction carries a potential sentence of 20 years, along with fines of $250,000 per count and restitution.
Ramesh “Sunny” Balwani, Holmes’ former boyfriend and the ex-president and COO of Theranos, faced a separate trial in San Jose for his involvement in defrauding investors and patients of Theranos. Balwani’s jury found him guilty on all 12 counts of fraud. Following the verdict, Judge Davila sentenced Balwani to serve 12 years and 11 months in prison.
In a joint order, Judge Davila directed both Holmes and Balwani to repay their victims a total of $452 million, a ruling that Holmes has appealed.
The legal saga surrounding Holmes and Balwani has captured widespread attention due to the stunning collapse of Theranos, a once-promising company that claimed to have developed a groundbreaking blood-testing technology. As these events unfold, the focus now shifts to the appeals process and the ongoing efforts to seek restitution for those affected by the Theranos scandal.
OduNews.com will continue to closely monitor developments in this high-profile case and provide updates on this and other breaking news stories. Stay tuned for the latest in current affairs, politics, business, and more.