Who is Elizabeth Holmes? Why is she going to prison?

Theranos founder and CEO Elizabeth Holmes was denied bail on May 16, 2023. She has been ordered by a federal court to report to prison and to jointly pay $452 million to the victims. 

Elizabeth Holmes Loses Final Bid to Stay Out of Prison pic.twitter.com/E6JRa1pO2v

— zerohedge (@zerohedge) May 17, 2023

The Ninth Circuit just denied Elizabeth Holmes' bail request. She's going to start serving her 11+ year prison sentence for her 4-count investor fraud conviction while the Ninth Circuit considers her appeal. A new self-surrender date has not yet been set. pic.twitter.com/3RzBzIxIyK

— Dorothy Atkins (@doratki) May 17, 2023

Who is Elizabeth Holmes?

Elizabeth Holmes is a former businesswoman and the founder of Theranos, a now-defunct healthcare technology company. Born on February 3, 1984, Holmes gained significant attention as a young entrepreneur who claimed to have revolutionised blood testing by developing a device that could perform a wide range of tests, including detecting cancer, using only a small amount of blood. She dropped out of Stanford University at the age of 19 to pursue her business venture.

Holmes attracted considerable investment, and at its peak, her biotech company, Theranos, was valued at around $9 billion. She gained prominence as the “youngest self-made female billionaire.” 

However, in 2015, investigative reporting by The Wall Street Journal raised serious doubts about the effectiveness and accuracy of Theranos' technology, called the Edison Device. A year later, it was revealed that her company had been misleading investors, patients, and the public about the capabilities of its products.

Why is Elizabeth Holmes going to prison?

Subsequent investigations by various regulatory agencies exposed significant flaws in Theranos' technology and testing methods. The company faced numerous lawsuits and regulatory actions, and it eventually shut down in September 2018. Elizabeth Holmes, along with the former Theranos president Ramesh "Sunny" Balwani, faced criminal charges related to fraud and conspiracy.

Specifically, Holmes and Balwani were alleged to have misrepresented the accuracy and reliability of the Edison device, claiming it could perform a wide range of tests with just a few drops of blood. However, it was revealed that the technology was flawed and produced unreliable results.

The prosecution presented evidence that Holmes and Balwani knowingly deceived investors, including prominent individuals and organisations, into providing significant funding to Theranos. They also alleged that the false claims made by Holmes and Balwani led to patients receiving inaccurate test results, potentially endangering their health.

The trial focused on whether Holmes deliberately misled investors and patients, as well as whether she knowingly participated in a scheme to defraud. The jury ultimately found her guilty on four counts of fraud and conspiracy in 2022, and was sentence to 11-years in prison.

Holmes had been previously ordered to surrender to authorities on April 27. However, she filed a motion with the appeals court on April 25, two days before she was due to report to prison, asking for a stay of her sentence while she appeals her conviction. The appeals court denied Holmes' motion on Tuesday. Additionally, Holmes and Balwani  are to jointly pay $452 million in restitution to everyone who has been defrauded by them. The restitution will be paid to the investors who lost money in Theranos, as well as to the patients who were harmed by the company's inaccurate blood tests. 

U.S. District Judge Edward Davila who carried out the sentence will set a new date for Holmes to report to prison. Balwani is already serving a 12-year sentence.

There is also a web-series made on the deception and lies of Elizabeth Holmes and her partner, starring Amanda Seyfried. You can watch the trailer here: