Holmes on homes3/28/2023 ![]() ![]() At its peak, Theranos was valued at $9 billion, making Holmes a billionaire on paper. Theranos raised $945 million from an impressive list of investors, including media mogul Rupert Murdoch, Oracle founder Larry Ellison, Walmart’s Walton family and the billionaire family of former Secretary of Education Betsy DeVos. After a decade under the radar, Holmes began courting the press with claims that Theranos had invented technology that could accurately and reliably test for a range of conditions using just a few drops of blood taken from a finger prick. Holmes, now 38, started Theranos in 2003 at the age of 19 and soon thereafter dropped out of Stanford University to pursue the company full-time. Once hailed as a tech industry icon for her company’s promises to test for a range of conditions with just a few drops of blood, she is now the rare tech founder to be convicted and face prison time for her company’s missteps. ![]() “These still are benefits she’s receiving,” he said.įriday’s sentencing hearing caps off Holmes’ stunning downfall. The rise and fall of Elizabeth Holmes: A timelineįederal prosecutor Jeffrey Schenk pointed out that Holmes did gain fame, admiration, and a lifestyle from the fraud, even if she did not make financial gains. Confronted with tough questions on the witness stand last week, as she defends herself against criminal fraud charges, Holmes admitted to errors on several occasions. In arguments before the judge on Friday over her sentence, Kevin Downey, one of Holmes’ lawyers, said that unlike other defendants in corporate fraud cases, the Theranos founder did not express greed by cashing out shares or spending money on “yachts and planes.” Instead, the money was “used to build medical technology.”Įlizabeth Holmes, founder of Theranos Inc., arrives at federal court in San Jose, California, U.S., on Tuesday, Dec. “When given the opportunity to speak, Elizabeth Holmes made a statement that she takes responsibility for Theranos but did not say she takes responsibility for the fraud.” “The judge imposed a powerful sentence that confirms that fraud cannot masquerade as innovation in Silicon Valley,” said George Demos, a former SEC enforcement attorney and adjunct law professor at UC Davis. “I regret my failings with every cell in my body.” I gave everything I had to build our company and to save our company,” she said. She also apologized to the employees, investors and patients of Theranos. She is shown here making a statement to the judge before the sentencing. I am devastated by my failings.”Įlizabeth Holmes, the founder of failed blood testing startup Theranos who was convicted of fraud earlier this year, was sentenced today by a judge in court in San Jose, California. “The people I tried to get involved with Theranos were the people I loved and respected the most. Holmes’ defense team asked Davila, who presided over her case, to sentence her to up to 18 months of incarceration followed by probation and community service.īefore the sentencing was announced, a tearful Holmes spoke to the court in San Jose, California. ![]() Lawyers for the government asked for a 15-year prison term, as well as probation and restitution, while Holmes’ probation officer pushed for a nine-year term. Holmes, who was found guilty in January on four charges of defrauding investors, faced up to 20 years in prison as well as a fine of $250,000 plus restitution for each count. She is expected to appeal her conviction. Holmes was ordered to turn herself into custody on April 27, 2023. The sentence also includes a fine of $400, or $100 for each count of fraud. Judge Edward Davila imposed a sentence of 11 years and three months in prison, with another three years of supervision after Holmes is released. Elizabeth Holmes was sentenced to more than 11 years in prison on Friday following her conviction in January for defrauding investors while running the failed blood testing startup Theranos. ![]()
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