OAN’s Brooke Mallory
2:23 PM – Tuesday, May 30, 2023
Elizabeth Holmes, the disgraced founder of the ill-fated blood testing start-up Theranos, acknowledged her own downfall from success on Tuesday when she was forced to report to prison to begin her sentencing.
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After being found guilty on many counts of cheating investors while operating the now-defunct firm, Holmes was given a sentence of at least 11 years in prison in November of last year.
An appellate court earlier this month had rejected her request to enjoy freedom on bail as she pursues a case to have her conviction overturned. Holmes was required to turn herself in to the Bureau of Prisons by May 30th in order to start serving her sentence, according to Judge Edward Davila, who presided over her trial.
Holmes arrived on Tuesday at the minimum-security Federal Prison Camp Bryan (FPC Bryan) in southern Texas, about 100 miles from Houston.
“We can confirm Elizabeth Holmes has arrived at the Federal Prison Camp Bryan in Bryan, Texas, and is in the custody of the Federal Bureau of Prisons,” said a spokesperson for the Bureau of Prisons.
Ramesh “Sunny” Balwani, her ex-boyfriend and the former chief operating officer of Theranos, was also found guilty of fraud and reported to a California prison last month to start serving his term.
In the past, Holmes was revered in the technology industry and served as a symbol of Silicon Valley’s boundless possibilities and aspirations. She and Balwani are now known as notable tech executives who have been tried and found guilty of fraud.
Theranos, a firm that claimed to have developed technology that could reliably test for a variety of illnesses with just a few drops of blood, was Holmes’ primary focus after dropping out of Stanford at the age of 19. At its peak, Theranos was valued at $9 billion and raised $945 million from a distinguished group of investors, making Holmes a virtual millionaire.
She appeared on numerous magazine covers and gave public speeches while sporting a black turtleneck that drew similarities to the late Steve Jobs, the CEO of Apple.
After a Wall Street Journal investigation revealed in 2015 that Theranos had only ever done a few of the hundreds of tests it offered using its patented technology, and with doubtful accuracy, her business started to fall apart. Additionally, it was discovered that Theranos was not using its own technology, but rather devices made by third parties for conventional blood testing businesses.
In the end, Theranos was shut down in September 2018.
Nearly five years ago, Holmes and Balwani were already charged with the same 12 felony offenses. However, their cases were dropped when Holmes made it clear that she wanted to charge Balwani with assaulting her physically, emotionally, and mentally throughout the course of their ten-year relationship, which coincided with her time as the company’s CEO.
Balwani’s legal counsel has adamantly refuted her assertions of abuse.
U.S. District Judge Edward Davila mandated Holmes and Balwani to make reparation payments to their victims totaling about $452 million this month.
In November, Holmes tearfully addressed the court in San Jose, California, before her sentence was revealed.
“I loved Theranos. It was my life’s work,” she said. “The people I tried to get involved with Theranos were the people I loved and respected the most. I am devastated by my failings.”
She continued by expressing her regrets to Theranos’ staff members, investors, and clients.
“I’m so, so sorry. I gave everything I had to build our company and to save our company… I regret my failings with every cell in my body,” Holmes maintained.
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