Update: Theranos founder Elizabeth Holmes has been ordered to report to prison by 2 p.m. on May 30 to begin serving her 11 years and 3 months term after her fraud conviction last year, KGO reported. Holmes lost a bid to remain out on bail while she appealed the conviction.
An appeals court denied Therano found Elizabeth Holmes’ attempt to stay out of prison while challenging her fraud conviction, while she and her former CEO were ordered to pay $452 million to victims of the fraud.
Holmes was convicted last year of misrepresenting her company’s technology and finances and was sentenced to 11 years and 3 months in prison, as CrimeOnline previously reported. Former CEO Ramesh “Sunny” Balwani was convicted on similar charges in a separate trial and began serving his 12 years and 11 months sentence in April after a court denied his request to remain free while he appeals.
During her trial, Holmes claimed that she believed her statements were accurate when she made them. But in making his restitution order, Judge Edward Davila flatly rejected that contention, Reuters reported.
“The victims’ losses occurred at the moment they exchanged their money for Theranos shares,” he said.
Davila ruled that Holmes and Balwani are equally on the hook for the full $452 million.
Meanwhile, the US Circuit Court of Appeals denied Holmes’ request to remain free on bond during appeal, She had been due to begin her sentence on April 25, but she asked the court to delay two days before. Davila will now set a new date for her to go behind bars.
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[Featured image: Theranos founder and CEO Elizabeth Holmes arrives to federal court in San Jose, California, on November 18, 2022. (AP Photo/Nic Coury)]