(CTN News) – Elizabeth Holmes, the founder of Theranos, will be sentenced to 11 years in prison on Tuesday, marking the final chapter in the years-long fraud saga that grips Silicon Valley.
He has been ordered to report to a minimum-security federal prison camp in Texas no later than Tuesday at 2pm.
After being indicted on fraud charges in 2018, Elizabeth Holmes was released on bail.
In November 2022, she was convicted on four counts of defrauding investors and sentenced to 11 years and three months in prison.
Elizabeth Holmes must serve 85% of her sentence regardless of good conduct. It houses mostly white-collar and non-violent federal incarcerees, and does not have the kind of fencing or strict rules found in higher-security prisons. All inmates must hold a job for at least 90 days as part of the work-focused program.
While she pursues a new trial based on alleged wrongdoing on the part of the prosecution, Elizabeth Holmes attempted to delay serving her sentence. A new trial or an overturning of the guilty verdict was unlikely, according to US district judge Edward Davila.
Her last days of freedom were spent with her partner, Billy Evans, and their children. She gave birth to her first child in July 2021, and in November she appeared for her sentencing hearing pregnant with her second child.
Earlier this year, Elizabeth Holmes’ former business partner Sunny Balwani was found guilty of all 12 fraud counts against him, and began his 13-year prison sentence.
With the imprisonment of both Theranos figuresheads, the dramatic story of Theranos comes to an end – a company Holmes established in 2003 after dropping out of Stanford University at 19.
Rupert Murdoch and former secretary of state Henry Kissinger funded her project with millions of dollars, promising a revolutionary method of running hundreds of health tests with just one drop of blood.
Until the Wall Street Journal revealed flaws in Theranos’ core technology in 2015, the company’s market cap reached $10 billion at its peak. As of 2018, Theranos had dissolved.
Holmes’ trial lasted 18 weeks and featured testimony from high-profile Theranos investors, including James Mattis. Defense attorneys painted Elizabeth Holmes as an ambitious and naive young founder unaware of Theranos’ technological problems. Holmes apologized to “the people who believed in us” before her sentencing.
I am devastated by my failures,” she said. For years, I have felt deep pain for what people went through because I failed them. Every cell in my body regrets my failures.”
A harsh sentencing – far longer than the 18 months Elizabeth Holmes’ team requested – is thought to have set a new precedent in Silicon Valley and its hype cycle that allowed Theranos to succeed.
Holmes has started a campaign to rehabilitate her image, telling the New York Times about her new life as Liz, a mother who’s renounced her signature baritone.
In addition to her prison sentence, she has to pay $452m in restitution to victims.