Elizabeth Holmes, the founder of Theranos, was given a sentence of more than 11 years in jail for fraud on Friday after misleading investors about the alleged effectiveness of her company’s blood-testing technology.
A who’s who of wealthy backers, including Walmart’s Walton family, media tycoon Rupert Murdoch, Oracle founder Larry Ellison, and the rich family of former education secretary Betsy DeVos, helped Theranos fund $945 million. Theranos was valued at $9 billion at its height, making Holmes a phony billionaire.
She regularly wore a distinctive black turtleneck that drew analogies to the late Apple CEO Steve Jobs and was praised on magazine covers. (She hasn’t appeared in court with that expression.
The remarkable rise and fall of Elizabeth Holmes, who went from being the youngest self-made female billionaire in US history to Theranos folding in shame, served as the inspiration for the award-winning podcast The Dropout, which was turned into the Amanda Seyfried-starring Hulu TV series of the same name.
Following a case that captivated the world, the 38-year-old was found guilty on four charges of fraud and given a sentence of more than 11 years in prison on Friday.
Judge Edward Davila gave Holmes a sentence of 11 years, 3 months in jail, and three more years of probation. In addition, the defendant must pay a $400 fine or $100 for each count of deception. A later time will be chosen for restitution. On April 27, 2023, Holmes was required to present herself to law enforcement. She will probably challenge her conviction.
Elizabeth Holmes, convicted in January on four counts of scamming investors, was subject to a maximum sentence of 20 years in prison, a $250,000 fine, and restitution for each count.
In 2015, The Wall Street Journal was the publication that first reported on how Theranos’ blood-testing technology was failing to live up to promises. Whistleblowers and other witnesses came forward to give in-depth details of how Holmes and former operations head Ramesh “Sunny” Balwani misled clients, partners, investors, and workers regarding the company’s development and the capabilities of its technology.
Private investors once placed Theranos’ value at $9 billion, but it was shut down in 2018.
“Thank you for having me. Thank you for the courtesy and respect you have shown me,” she said Friday. “I have felt deep pain for what people went through because I failed them. To investors, patients, I am sorry.”
Elizabeth Holmes, the founder of Theranos
Elizabeth Holmes can appeal those decisions and her sentence to the 9th US Circuit Court of Appeals now that it has been given.