Elizabeth Holmes Ordered to Report to Prison Amid Fraud Appeal

In a recent court ruling, Elizabeth Holmes, the founder of the now-defunct Theranos, was ordered to report to prison on May 30 while she appeals against her fraud conviction. Holmes, who once promised a revolutionary blood-testing technology, was sentenced to over 11 years in prison after a jury found her guilty of defrauding investors. The disgraced entrepreneur had requested the court to allow her to remain free while challenging her jail sentence.

Judge Edward Davila of the U.S. District Court also directed Holmes to pay $452 million in restitution to her victims. This payment will be split with Ramesh “Sunny” Balwani, Holmes’ ex-business and romantic partner and former Theranos President. Balwani, himself convicted on 12 counts of fraud and conspiracy last year, was sentenced to 13 years in prison. He started serving his term in April after losing his appeal to remain free during his appeal process.

The court has recommended Holmes serve her sentence at a minimum-security federal women’s prison in Bryan, Texas. Holmes, mother of two and living with her partner and hotel heir, William Evans, in San Diego, California, had previously asked the Ninth Circuit Court of Appeals to delay her sentence. She promised to raise “substantial questions” that could warrant a new trial, a proposition Judge Davila rejected. Holmes’s attorneys also cited the need to care for her children as a reason for her to stay out of prison during the appeal.

The Theranos Scandal: A Quick Recap

Holmes, once dubbed the “next Steve Jobs,” was celebrated as the world’s youngest self-made billionaire. She founded Theranos after leaving Stanford University and was successful in raising millions from prominent investors, including media mogul Rupert Murdoch, former Secretary of State Henry Kissinger, and Oracle founder Larry Ellison.

Theranos, at its peak, promised a groundbreaking technology that could run an extensive range of tests from just a few drops of blood, a claim that later proved to be false. After investigations revealed the inefficacy of its technology, the startup collapsed in 2018.

Holmes and Balwani were subsequently charged with criminal fraud, accused of misleading investors and making false claims about their blood-testing technology. The trial shed more light on Theranos’ final business days, with prosecutors alleging that Holmes destroyed evidence. While she admitted to operational mistakes during her defense testimony, Holmes maintained that she never knowingly defrauded patients or investors.

This remarkable scandal, initially exposed in 2015, has drawn worldwide attention. Documented in a TV series, an HBO documentary, and a podcast, the Theranos saga continues to unfold. Holmes’ imminent prison term and her ongoing appeal ensure the story is far from over.