ELIZABETH HOLMES BAGS 11 YEARS IN PRISON OVER ILLEGAL FRAUD
The founder of failed blood test startup Theranos was sentenced Friday by a federal court judge in San Jose, California. She was sentenced to 11.25 years in prison and 3 years of probation. Sentencing will begin in April 2023.
Holmes, 38, who is pregnant, told the court in tears she felt “deeply hurt” for those who were tricked by the scam.
She was found guilty in January after a three-month trial. Holmes is expected to appeal the verdict that was delivered Friday in a California court.
The verdict is seen by many as a test of how seriously the justice system handles corporate fraud in the tech sector.
FACING THE COURT
As we’ve reported, Holmes was convicted on of 4 of 11 charges she was facing in her fraud trial earlier this year — one count of conspiracy to commit wire fraud and 3 counts of wire fraud.
She was charged with conspiracy to commit wire fraud and multiple counts of wire fraud for deceiving investors, patients and advertisers … all in search of money and fame. She was found not guilty on 4 counts … the jury couldn’t reach a verdict on 3 of the counts.
During the trial, Holmes testified that she had good intentions and put her trust in the scientists behind the start-up company. It was also revealed during sentencing she’s pregnant with her second child … she also addressed the court, getting emotional and took responsibility for Theranos — apologizing to investors.
Holmes also recited a quote from the poet Rumi, saying, “Yesterday I tried to change the world. Today I’m wise, and want to change myself.”
The billion-dollar company promised it could perform cheaper and easier blood testing, but it was later revealed its devices could only successfully complete 12 tests … instead of Elizabeth’s claim of 1,000. The company shut down 3 years later.
There’s been a documentary, a best-selling book, a podcast and a drama series — “The Dropout” — all centered around the company’s downfall.
She started the company when she was 19 back in 2003.