Elizabeth Holmes Going To Prison, Gets Emotional About Theranos Failures Before Sentencing
After defrauding investors about the supposed efficacy of her company's blood-testing technology, Elizabeth Holmes, Theranos founder, was sentenced to more than 11 years in prison for fraud on Friday.
In January, Holmes was found guilty by the U.S. District Court for the Northern District of California. She spoke tearfully to the court on Friday before she was sentenced, per CNBC.
"I loved Theranos. It was my life's work," Holmes said. "My team meant the world to me. I am devastated by my failings. I'm so so sorry. I gave everything I had to build my company."
Records show her legal team argued she should serve no more than 18 months in prison.
However, she was given a term of 135 months in jail, equivalent to 11 years and three months.
Elizabeth Holmes Prison Sentence
Elizabeth Holmes was sentenced to 11 years, three months in prison, and three years of probation by Judge Edward Davila.
The offender must also pay a total fine of $400, or $100, for each count of fraud. The timing for compensation will be determined at a later date.
Holmes was ordered to turn herself into authorities on April 27, 2023. A likely outcome is that she will appeal her sentence, CNN noted.
Holmes, convicted in January of four counts of scamming investors, was subject to a maximum sentence of 20 years in prison, a $250,000 fine, and restitution for each count.
The government's lawyers asked for a 15-year prison term, probation, and restitution from Holmes, while Holmes' probation officer advocated for a nine-year sentence.
The defense team for Holmes asked the presiding judge to give Holmes a sentence of no more than 18 months in prison, followed by probation and community service.
An emotional Holmes also expressed her apologies to Theranos' staff members, investors, and clients.
"I'm so, so sorry. I gave everything I had to build our company and to save our company," she said. "I regret my failings with every cell in my body."
George Demos, a former SEC enforcement attorney and adjunct law professor at UC Davis, stated, "the judge imposed a powerful sentence that confirms that fraud cannot masquerade as innovation in Silicon Valley." Elizabeth Holmes said she accepts responsibility for Theranos but did not say she takes responsibility for the fraud when given a chance to speak.
Defense Attorney Tells How Sincere Elizabeth Holmes Theranos Is To Help Others
As defense attorney, Kevin Downey, reminded out on Friday, Elizabeth Holmes had not tried to sell her holdings in the corporation, unlike other prominent people convicted of major fraud.
"Those are the cases with the yachts, the planes, the parties and the large mansions," Downey said. "What did this woman do? She built technology."
With lucrative contracts negotiated with Walgreens and other corporations, Holmes' Edison machine quickly lost its promise.
The company abandoned traditional testing in favor of using commercially available technology from Siemens, some of which resulted in faulty conclusions.
The incident was revealed to the public by Tyler Shultz, a former employee of Theranos and now a whistleblower, and the nephew of George Shultz, the director of Theranos and a former United States secretary of state.
"Bad Blood," a book by reporter John Carreyrou about Holmes and Theranos, became a New York Times bestseller. Several dramatic TV versions of the book were based on Holmes's strange appearance and behavior, which reminded people of Steve Jobs.
Tyler's father, Alex Shultz, testified in court on Friday. He said that Tyler had been afraid and slept with a knife under his pillow and that Holmes had hired a private investigator to watch him.
"It was a gruelling experience to go through," Alex Shultz said. "My family home was desecrated by Elizabeth."
More than 130 letters from persons "who actually know Ms. Holmes" were referenced by the defense team to back up their claim that the public interest should not be used against her.
Democratic Senator Cory Booker was one of them. He and Holmes bonded over a vegan dinner and a packet of almonds.
She "has within her a sincere desire to help others, to be of meaningful service, and possesses the capacity to redeem herself", he wrote.
Ramesh "Sunny" Balwani, Holmes' ex-boyfriend and the chief operating officer of Theranos, was found guilty of 12 counts of fraud in a separate trial. He will be sentenced in the first part of December.
This article is owned by Latin Post.
Written by: Bert Hoover
WATCH: Theranos Founder Elizabeth Holmes Faces Sentencing In Fraud Trial - From TODAY
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