Last Updated on November 19, 2022 by Bitfinsider
Elizabeth Holmes, the founder of Theranos, was sentenced to more than 11 years in jail on Friday for defrauding investors about the alleged usefulness of her company’s blood-testing technology. On April 27, she was ordered to surrender.
In January, Holmes was found guilty in the United States District Court for the Northern District of California. She cried as she addressed the court prior to her Friday sentencing.
“I cherished Theranos. It was my life’s labor,’ remarked Holmes. “My squad meant everything to me.” I am crushed by my failures. I’m so sorry. I sacrificed everything to develop my firm.”
According to court documents, her defense team suggested she should receive a maximum sentence of 18 months. Instead, she was sentenced to 135 months, or 11 years and 3 months, in prison.
In 2015, the Wall Street Journal was the first to report that Theranos’ blood-testing technology was failing to meet expectations. Whistleblowers and other witnesses provided comprehensive stories of how Holmes and former operations chief Ramesh “Sunny” Balwani misled patients, partners, investors, and workers over the company’s growth and technological capabilities.
Once valued by private investors at $9 billion, Theranos ceased operations in 2018.
“I appreciate your having me. “Thank you for your civility and consideration,” she remarked on Friday. “Because I let people down, I’ve felt a great deal of anguish for their suffering. Sorry to investors and patients.”
The prosecution wanted a 15-year term for the 38-year-old pregnant former Silicon Valley celebrity and billionaire. Balwani, who was previously romantically engaged with Holmes, was found guilty of 12 counts of fraud in July. His punishment is scheduled for next month.
The punishment was handed down by U.S. District Court Judge Edward Davila, who presided over Holmes’ trial.
The former billionaire sought a new trial when a former employee showed up on her porch in August to talk with her. Billy Evans, Holmes’ partner, told the court that the former employee expressed regret at their shared apartment.
However, this employee, Adam Rosendorff, explained to the court that he was distressed by the prospect of a child spending time apart from their mother. The founder of Theranos gave birth to her first kid in July and is expecting another.
Sam Bankman-Fried, another young former tech billionaire star, faces an uncertain future following the abrupt collapse of his cryptocurrency exchange FTX last week. Bankman-Fried has not been charged with a crime, but he is in legal trouble as a result of findings that his company was unable to return depositors’ funds because a portion of it was utilized to finance risky, losing bets.
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