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Elizabeth Holmes, the titular founder of failed blood-testing startup Theranos, was convicted last year of defrauding investors of more than $100 million, but has remained in prison while appealing the conviction. I lost the latest bid to say no.
Holmes, whose case shined a harsh light on Silicon Valley’s arrogant culture, said a judge ruled that he must appear in prison on May 30 after the U.S. Court of Appeals for the Ninth Circuit. Denied her attempt to keep bail out on Tuesday.
So did Mr. Holmes and Theranos’ top deputy Ramesh Balwani, who began serving time last month after being convicted of fraud in a separate trial. ordered to pay $452 million As compensation for victims of fraud by the company.
Judge Edward J. Davila of the United States District Court for the Northern District of California, who oversaw both cases, said Holmes and Balwani should pay media mogul Rupert Murdoch $125 million out of that sum. made the decision that there was at Theranos. Walgreens and Safeway, which had business relationships with the company, were also named victims for reparation purposes.
Why it matters: Ms Holmes’ conviction marked the end of an era.
Theranos has raised nearly $1 billion from investors for technology it said could test for various diseases with just a few drops of a patient’s blood. After those claims turned out to be false, Mr. Holmes and Mr. Balwani were accused of defrauding investors.
Their convictions and sentences (11 years in prison for Holmes and 13 years for Balwani) could be the end of the era of a “lie until you succeed” approach in Silicon Valley. is spreading. Holmes, who dropped out of Stanford University to start his own company, has a net worth of $4.5 billion and celebrity backers. Her precipitous fall has been widely documented in TV shows, podcasts and documentaries.
Background: A last-ditch effort to stay out of prison.
Holmes has appealed the conviction, and the proceedings have postponed his jail date, originally scheduled for April 27. Last month, Judge Davila said, rejected It was a request to remain free pending a last-minute appeal from Mr. Holmes.
Holmes was convicted last year of four felony counts of deceiving investors.
Mr. Balwani, also known as Sunny, was a close business colleague and former lover of Mr. Holmes. He was found guilty of 10 wire fraud counts and two wire fraud conspiracy counts at a trial last year, but the verdict was harsher than that of Mr. Holmes. His defense team has filed an appeal against his conviction.
What’s next: Mr. Holmes is going to jail.
Holmes plans to surrender to authorities after Memorial Day weekend. She was originally ordered to appear at a federal prison camp in Bryan, Texas. She lives in California with her partner Billy Evans and her two young children.
