Elizabeth Holmes will be in jail for the next 11 years. Elizabeth Holmes, the founder of the blood-testing startup Theranos, has been sentenced to more than 11 years in prison for her role in a massive fraud scheme. Holmes was convicted of two counts of wire fraud and conspiracy to commit wire fraud in March, after a six-week trial.
She was facing up to 20 years in prison on each count. However, the prosecutors had recommended a sentence of just four to six years. Judge Edward Chen sentenced Holmes to 10 years on one count and 13 months on the other, to be served concurrently. He also ordered her to pay a $500,000 fine and forfeit nearly $4.5 million in ill-gotten gains.
The Judge said:
“This is a fraud case where an exciting venture went forward with great expectations only to be dashed by untruths, misrepresentations, plain hubris and lies”
Elizabeth received 11 years of Sentence in jail for frauding
Theranos claimed that it’s Edison blood-testing devices could perform dozens of different tests from just a few drops of blood, but it turns out the technology didn’t work as advertised. By replacing traditional labs with portable devices intended for use in homes, pharmacies, and even on the battlefield, Theranos Inc. claimed to change how patients obtain diagnoses. The company eventually had to void millions of test results and settle with federal regulators for $30 million.
Prosecutors said Holmes and her former president, Ramesh “Sunny” Balwani, defrauded investors out of hundreds of millions of dollars by peddling false claims about Theranos’ technology. They also said the pair misled doctors and patients about the accuracy of Theranos’ tests. During the trial, Holmes.
The Theranos founder is successful in securing funding from investors. However, later it was found that she had lied about the technology and business transactions of her company. The fallout led to four convictions on felony fraud charges in January.
Holmes was found guilty of two counts of Conspiracy
In a statement, Holmes said she was “sorry for the harm” she caused. She “accepts full responsibility” for her actions. “I am heartbroken that my work has caused so much pain,” she said. “I remain dedicated to fighting for the Company and its mission.” The sentencing caps a stunning fall from grace for Holmes. She once was hailed as a wunderkind of Silicon Valley and compared to Steve Jobs.
In July, Holmes pleaded guilty to two counts of conspiracy to commit wire fraud. As part of her plea deal, she agrees to pay $750 million in restitution and forfeit nearly all of her assets. The sentencing judge said Holmes “engaged in a massive fraud” and “stole from investors.” He also said she “showed no remorse” for her actions. Holmes will be required to report to prison by August 2021
In the courtroom on Friday, Ms. Holmes appeared with a large group of friends and family. It includes her parents and her partner, Billy Evans. During the sentencing hearing, Holmes cried as she said she was “devastated” by her failures. She would have done many things differently if she had the chance.
“I have felt deep shame for what people went through because I failed them,” Holmes said.
Holmes who has a 1-year-old child and is pregnant with a second child apologized to investors, Employees, and Patients of Theranos.
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