A court has ruled former Theranos CEO Elizabeth Holmes must serve her 11-year sentence in prison, rejecting an appeal from the convicted fraudster that she be allowed to remain free as she fought to have her January 2022 conviction overturned.
The Ninth Circuit Court of Appeals ruled Tuesday that Holmes’ appeal to avoid prison was denied, stating she had not presented any reason that would lead the court to believe her sentence would be overturned. In a separate ruling, Judge Edward Davila of the Northern District of California ruled Holmes must pay $452 million in restitution to victims of Theranos’ fraud as required by the Mandatory Victims Restitution Act.
An appeals court has denied Elizabeth Holmes’ last-ditch bid to stay out of prison while the Theranos founder appeals her conviction of defrauding investors. https://t.co/UsyO2OhEv3
— CBS News (@CBSNews) May 17, 2023
Holmes was sentenced to 11.25 years prison in November 2022, after being found guilty of four counts of fraud-related charges relating to Theranos, a medical technology startup that manufactured cheap and accessible blood-testing equipment, she founded in 2003. Holmes advertised and told investors that Theranos’s technology could provide “accurate, fast, reliable, and cheap blood tests and test results” when she allegedly knew it could not do so. (RELATED: NYT’s Gushing Interview With Fraudster Reveals Corporate Media’s Class Loyalty)
Davila previously ordered Holmes to report to prison April 27, but that initial order was delayed by her appeal, the Associated Press reported. The judge has yet to issue a new report date. Though the Federal Bureau of Prisons has not disclosed where Holmes will serve her sentence, Davila initially recommended a low-security women’s prison in Bryan, Texas, that allows for family visitation as Holmes has two young children, CBS News reported.