How much time will Elizabeth Holmes serve? Theranos CEO sentenced to prison over fraud

On November 18, Friday, a California Judge sentenced former Theranos CEO Elizabeth Holmes to 11 years and three months in prison over allegations that she defrauded investors.

According to Business Insider, Elizabeth Holmes, 38, was implicated in a scandal in which she reportedly made misleading claims about her company, Theranos, a blood testing startup that was once worth $9 billion. Prosecutors claimed that the machines used for the blood tests were inaccurate and unable to perform many of the tests that had been advertised by the company.

NPR reported that Elizabeth Holmes is due to begin her prison sentence in five months. She is currently pregnant with her second child.

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Elizabeth Holmes was found guilty on 4 of the 11 counts leveled against her

BBC reported that in 2018, a Federal Grand Jury indicted Elizabeth Holmes on nine counts of wire fraud and two counts of conspiracy to commit wire fraud. In January 2022, a California jury found her guilty on four of the 11 counts leveled against her.

The entrepreneur's fall from grace has been particularly shocking due to her reputation as an innovator within the tech industry. US District Judge Edward Davila reinforced this as he passed the sentence. Davila said:

"The tragedy of this case is that Ms. Holmes is brilliant."

Davila questioned why an entrepreneur with her talent would resort to fraud. He said:

"Was there a loss of moral compass here? Was it hubris? Was it intoxication with the fame?"

He continued:

"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."

Prosecutor John Bostic said that Elizabeth Holmes would frequently lie to investors about test results and the capabilities of Theranos's machines.

Bostic said:

"She knew that they were investing in Theranos based on a false premise. She was aware of the mismatch between what she was presenting to investors and reality."

NPR reported that according to Alex Schulz, the father of former Theranos employee Tyler Schulz, when his son attempted to reveal the true nature of the company, Holmes hired private investigators to track him down and suppress the information.

Alex Schulz said:

"It was a grueling experience. My family home was desecrated by Elizabeth."

In a tearful apology, Holmes addressed her former victims before the sentence was declared.

She said:

"I am devastated by my failings. I have felt deep pain for what people went through, because I failed them. I regret my failings with every cell of my body."

While prosecutors hoped to see Holmes receive 15 years in prison, the former CEO's defense team stated that she genuinely believed the claims she had made and that 18 months under house arrest would be sufficient.

The BBC reported that her lawyers are trying to ensure that she only enters prison after the birth of her child.