Sunday, 24 Nov 2024

Disgraced Theranos CEO Elizabeth Holmes enters prison to serve 11-year sentence

Elizabeth Holmes, the former founder and CEO of blood testing startup Theranos, began her 11-year jail sentence on Tuesday.

Holmes, 39, reported to the Federal Prison Camp in Bryan, Texas, a minimum-security facility located about 95 miles from Houston.

She was convicted on charges of wire fraud and conspiracy in January 2022 and sentenced in November.

Holmes founded her company, Theranos, in 2003 after dropping out of Stanford University.




She claimed to have developed a machine that could perform lab tests with only a small amount of blood taken with a finger prick rather than a needle.

The machine, known as the Edison, helped Holmes and her business partner, Sunny Balwani, raise over $945million from investors and secure lucrative contracts with pharmacy giant Walgreens.

At its peak in 2013 and 2014, Theranos was valued at $9billion.

The company began to collapse after an investigation by the Wall Street Journal revealed that the Edison machines never functioned properly and often gave patients inaccurate results.

In 2018, Holmes and Balwani were both charged with fraud by the Securities and Exchange Committee (SEC) for lying to investors and patients.

Balwani was found guilty on six counts of defrauding investors and four counts of defrauding patients in a separate trial in July 2022. He was sentenced to 13 years in prison.

This is a breaking story, check back for updates…

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