Technology

Disgraced Theranos CEO Elizabeth Holmes must report to prison May 30

Former Theranos CEO Elizabeth Holmes (C) arrives at federal court with her partner Billy Evans (R) and mother Noel Holmes on November 18, 2022 in San Jose, California.
Justin Sullivan | Getty Images

Elizabeth Holmes, the disgraced CEO of Theranos, must report to prison on May 30, according to a ruling issued Wednesday by U.S. District Judge Edward Davila. Holmes must report to prison no later than 2:00 p.m. local time on that day, and is expected to begin her sentence at a minimum-security facility in Bryan, Texas.

On Tuesday, an appeals court rejected Holmes’ bid to stay out of prison while she appeals her conviction. In another Tuesday ruling, Judge Davila ordered that Holmes and former Theranos executive Ramesh “Sunny” Balwani pay $452 million in restitution to victims.

Last year, a federal jury in San Jose, California, convicted Holmes on four counts of defrauding investors in Theranos, her blood-testing company, and in November, Judge Davila sentenced her to 11 years and three months in prison. Balwani was sentenced to nearly 13 years in prison in July, after being convicted of 12 counts of fraud, and began his sentence in April.

Holmes, 39, has two children, the first of whom was born before her fraud trial in 2021. The second was born after her sentencing.

Holmes founded Theranos in 2003, and she and Balwani went on to raise more than $700 million from investors “through an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business and financial performance,” according to a filing by the U.S. Securities and Exchange Commission in 2018. That same year, a grand jury returned an indictment charging Holmes and Balwani with defrauding doctors and patients, also alleging that they “made numerous misrepresentations to potential investors about Theranos’s financial condition and its future prospects.”

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