Elizabeth Holmes, the founder of blood testing start-up Theranos, has delayed the start of her 11 years of prison sentence with a late appeal. Holmes was convicted on four counts of fraud linked to her failed start-up in 2020. However, under the 9th US Circuit appeals court rules, Holmes’ surrender has been automatically delayed until the court decides on her latest bid. It is unclear when that ruling will come.
Earlier this month, Holmes appealed to the court to remain free on bail while a challenge to the original conviction was considered. However, US district judge Edward Davila rejected this, saying Holmes had failed to prove the appeals process would lead to a new trial.
Late on Tuesday, Holmes’ attorneys appealed that ruling to the 9th Circuit in San Francisco. Under that court’s rules, Holmes can remain free on bail until the appeal is heard. Her lawyers argue that Judge Davila’s decision contained “numerous, inexplicable errors”. They said this included referring to “patient fraud counts” even though Holmes was acquitted on charges that she defrauded Theranos patients.
If Holmes’ appeal is unsuccessful, the US District Court of California has recommended she serve her time at a federal prison camp in Bryan, Texas, that allows for family visitation. However, her ultimate destination has not been confirmed.
Holmes was once hailed as the “next Steve Jobs” and said to be the world’s youngest self-made billionaire. She launched Theranos after dropping out of Stanford University, boasting a new blood-testing device that was purportedly able to run a multitude of tests from just a few drops of blood.
However, the start-up fell apart in 2018 after it was revealed its technology did not work. Holmes was found guilty of four counts of fraud last January, telling the court at the time she felt “deep pain” for those who were misled.
OVERVIEW OF THE CASE
Holmes was sentenced to more than 11 years in prison, and her former business and romantic partner Ramesh “Sunny” Balwani was sentenced to nearly 13 years. However, both of them have been using legal maneuvers to postpone their prison sentences.
Balwani was able to postpone his sentence by about a month using the same legal strategy as Holmes. However, he ultimately reported to a federal prison in San Pedro, California, earlier this month to begin his sentence.
Holmes’ legal team argues that Judge Davila’s decision contained numerous errors and that their client should remain free on bail while the challenge to her original conviction is considered.
Holmes was once considered a visionary entrepreneur and was touted as the “next Steve Jobs”. However, her reputation crumbled after it was revealed that Theranos’ blood testing device did not work as advertised.
Holmes was found guilty of defrauding investors and patients who used Theranos’ faulty blood tests. She apologized for her actions and told the court she felt “deep pain” for those who were misled.
If her latest appeal is unsuccessful, Holmes is expected to serve her time at a federal prison camp in Bryan, Texas, that allows for family visitation. However, it remains unclear when she will begin her sentence.