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From Tech CEO to Inmate: Elizabeth Holmes to start her prison term
Elizabeth Holmes, Theranos founder, has to report to prison to serve an 11-year sentence for fraud, marking the end of a scandalous chapter in Silicon Valley.
Elizabeth Holmes, the former CEO and founder of the now-defunct health tech firm Theranos, has been ordered to appear in prison on Tuesday to begin serving an 11-year term after being found guilty of fraud and conspiracy. Her attempt to remain free was denied earlier this month by a federal appeals court.
Holmes, once lauded as a Silicon Valley innovator, will serve the jail sentence after being found guilty on four felony counts of fraud and conspiracy. She has been forced to pay $452 million in reparations in addition to her prison term.
Elizabeth Holmes and the ‘revolutionary’ health firm: The scandal in 5 points
- Elizabeth Holmes started Theranos in 2003 after dropping out of Stanford University at the age of 19.
- The company claimed to have created a game-changing technology that could perform extensive laboratory tests using only a few droplets of blood. This was a major assertion because typical lab procedures sometimes need bigger volumes of blood and can be intrusive.
- Theranos was able to attract around $1 billion in funding from investors, achieving a peak valuation of over $9 billion. Oracle co-founder Larry Ellison and media magnate Rupert Murdoch were among the notable investors.
- However, contrary to the promises, Theranos' technology was discovered to be false. The blood tests did not operate as stated, resulting in inaccurate diagnosis and treatments.
- The company troubles culminated in a high-profile controversy. Holmes and former Theranos CEO Ramesh "Sunny" Balwani were charged with big fraud in 2018.
Silicon Valley to Prison
The location of the prison where Holmes will be held has not yet been revealed by the authorities. However, it has been reported that Holmes, who has been residing in the San Diego region while out on bail, would be required to go outside of California, most likely to Bryan, Texas.
