Theranos Fraudster Elizabeth Holmes’ 11-Year Prison Sentence Reduced By 2 Years: Report
Elizabeth Holmes began her prison sentence in May this year.
The prison sentence of the fallen US biotech star Elizabeth Holmes has been reduced by two years, according to a Forbes report. Citing prison records, the outlet said the development comes weeks after she claimed she cannot make restitution payments for victims of the failed blood-testing start-up. Homes was sentenced to 11 years and three months in prison last year after being found guilty on four counts of fraud and conspiracy charges. She began her prisons sentence in May this year.
But now, Bureau of Prisons records lists Holmes’ release date as December 29, 2032, two years sooner than initially scheduled.
See NDTV’s Coverage On The Theranos Founder
She is lodged in the minimum-security, federal women’s prison in Bryan, Texas. Her new release date means she will serve about nine years and seven months, as per the Forbes report.
It is not clear why her prison sentence has been reduced. The Bureau of Prisons confirmed the new release date to The Guardian but made no further comments citing “privacy, safety and security” of the inmate.
The outlet, however, said that the reduction in jail time is in accordance with federal sentencing guidelines, which states that people convicted of federal offences must serve 85 per cent of their mandated sentence, even if they get time shaved off for good conduct.
Holmes’ ex-boyfriend and former Theranos COO Ramesh “Sunny” Balwani was also convicted of fraud and reported to prison in California. But his sentence was also reduced.
The Theranos founder was convicted in January 2022 for persuading investors over 15 years that she had developed a revolutionary medical device before the company flamed out after an investigation by The Wall Street Journal (WSJ).
The company attracted investments from high-profile moguls, including Rupert Murdoch, the Walton family, and former Education Secretary Betsy DeVos. She was even hailed as the next tech visionary on magazine covers and collected mountains of investors’ cash, but it all collapsed after WSJ revealed the machines did not work as promised.
Prosecutors said she lied to investors from 2010 to 2015 by promising Theranos Inc’s technology could run many tests on one drop of blood from a finger prick. Theranos ultimately dissolved in September 2018.
