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Theranos Founder Holmes to Report to Prison May 30

Author: Editors Desk Source: WSJ:
May 17, 2023 at 19:16
Elizabeth Holmes, founder of Theranos, appeared earlier this year at federal court in San Jose, Calif. PHOTO: BENJAMIN FANJOY/BLOOMBERG NEWS
Elizabeth Holmes, founder of Theranos, appeared earlier this year at federal court in San Jose, Calif. PHOTO: BENJAMIN FANJOY/BLOOMBERG NEWS

Theranos founder Elizabeth Holmes must report to prison by May 30, a judge said Wednesday, after a court denied her request to stay out pending appeal. 

The U.S. Court of Appeals for the Ninth Circuit on Tuesday denied her request to stay out on bail, saying Holmes’s appeal doesn’t raise a substantial question of law and that even if it did, it is unlikely that it would be enough to overturn her fraud conviction.

Holmes, the disgraced founder of blood-testing startup Theranos, was convicted of wire fraud and conspiracy to commit wire fraud against the company’s investors in January 2022. She was sentenced to more than 11 years in prison.

Later Tuesday, Holmes and her former second-in-command Ramesh “Sunny” Balwani, who was also convicted of fraud at Theranos, were jointly ordered by a lower court to pay $452 million in restitution to investors, including $125 million to Rupert Murdoch, executive chairman of News Corp, which owns The Wall Street Journal. The federal government had previously asked for more than $800 million in restitution, according to court filings.

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