Theranos Chief Executive Officer, Elizabeth Holmes, he could soon go to jail after an appeals court on Tuesday rejected his request to overturn the conviction for misleading investors and consumers telling them that his company was able to produce instant blood tests. The bankrupt company that promised to revolutionize blood testing has become a symbol of Silicon Valley’s ambition.
In another ruling issued Tuesday evening, andJudge Edward Davila ordered Holmes to pay $452 million in restitution to the victims of his deceptions. Holmes is held responsible for paying this amount together with her former lover and junior to Theranos, Ramesh “Sunny” Balwaniwho is already in jail after being found guilty of other crimes in a separate case.
The Ninth Circuit Court of Appeals’ decision against Holmes’ escape attempt comes nearly three weeks after she attempted a last-minute legal maneuver to delay the start of her sentenced to 11 years’ imprisonment. The judge had ordered her to turn herself in to the authorities on April 27, after sentencing her in November.
Now Davila will set another date for Holmes, 39, to leave his San Diego-area home and report to jail.
The punishment will separate the businesswoman from her current partner, William “Billy” Evans, her one-year-old son, William, and her three-month-old daughter, undefeated. Theranos became pregnant from Invicta after being found guilty of fraud and conspiracy in January 2022.
Davila recommended that Holmes serve her sentence at a women’s prison in Bryan, Texas. It was not disclosed whether the Federal Bureau of Prisons accepted Davila’s recommendation or assigned Holmes to another prison.
Holmes, who served as CEO throughout the company’s 15-year history, was found guilty in January of the conspiracy, which revolved around the company’s claims it had developed a medical device that could detect various diseases and conditions with a few drops of blood But the technology never worked and its claims were false.
Holmes’ meteoric rise once landed her on the covers of business magazines acclaiming her as the next Steve Jobs. And her hoax was persuasive enough to attract sophisticated investors, including software mogul Larry Ellison, media mogul Rupert Murdoch and the Walton family of Walmart.
Balwani, 57, began serving his nearly 13-year prison sentence in April after being convicted of 12 counts of fraud and conspiracy in July. He was committed to a Southern California prison last month after losing a similar offer to remain free on bail while he appealed his sentence.
Mary Ortiz is a seasoned journalist with a passion for world events. As a writer for News Rebeat, she brings a fresh perspective to the latest global happenings and provides in-depth coverage that offers a deeper understanding of the world around us.