Theranos founder and CEO Elizabeth Holmes was denied bail on May 16, 2023. A federal court ordered her to report to prison and jointly pay $452 million to victims.
Elizabeth Holmes loses final bid to stay out of prison pic.twitter.com/E6JRa1pO2v
– zero coverage (@zerohedge)
May 17, 2023
The Ninth Circuit just denied Elizabeth Holmes’ bail request. She will begin serving her more than 11-year prison sentence for her conviction on four counts of investor fraud while the Ninth Circuit considers her appeal. A new date for delivery has not yet been set. pic.twitter.com/3RzBzIxIyK
—Dorothy Atkins (@doratki)
May 17, 2023
Who is Elizabeth Holmes?
Elizabeth Holmes is a former entrepreneur and founder of Theranos, a now-defunct health technology company. Born on February 3, 1984, Holmes attracted much attention as a young entrepreneur who claimed to have revolutionized blood testing by developing a device that could perform a wide range of tests, including cancer detection, using only a small amount of blood. He dropped out of Stanford University at the age of 19 to pursue his business.
Holmes attracted considerable investment and, at its peak, his biotech company, Theranos, was valued at around $9 billion. She gained prominence as the “youngest self-made female billionaire.”
However, in 2015, an investigative report by The Wall Street Journal raised serious questions about the effectiveness and accuracy of Theranos’ technology, called the Edison Device. A year later, it was revealed that his company had been misleading investors, patients, and the public about the capabilities of its products.
Why is Elizabeth Holmes going to prison?
Subsequent investigations by multiple regulatory agencies exposed major flaws in Theranos’ technology and testing methods. The company faced numerous lawsuits and regulatory actions, and ultimately closed in September 2018. Elizabeth Holmes, along with former Theranos president Ramesh “Sunny” Balwani, faced criminal charges related to fraud and conspiracy.
Specifically, Holmes and Balwani are alleged to have misrepresented the accuracy and reliability of the Edison device, claiming that it could perform a wide range of tests with just a few drops of blood. However, it was revealed that the technology was flawed and produced unreliable results.
Prosecutors presented evidence that Holmes and Balwani knowingly misled investors, including prominent individuals and organizations, into providing significant financing to Theranos. They also alleged that false claims made by Holmes and Balwani led to patients receiving inaccurate test results, potentially endangering their health.
The trial focused on whether Holmes deliberately deceived investors and patients, as well as whether he knowingly participated in a scheme to defraud. The jury ultimately found her guilty of four counts of fraud and conspiracy in 2022 and she was sentenced to 11 years in prison.
Holmes had previously been ordered to surrender to authorities on April 27. However, he filed a motion with the appeals court on April 25, two days before he was scheduled to appear in prison, requesting a stay of his sentence while he appeals his conviction. . The appeals court denied Holmes’ motion on Tuesday. Additionally, Holmes and Balwani will jointly pay $452 million in restitution to anyone defrauded by them. Restitution will be paid to investors who lost money in Theranos, as well as patients who were harmed by the company’s inaccurate blood tests.
U.S. District Judge Edward Davila, who carried out the sentence, will set a new date for Holmes to report to prison. Balwani is already serving a 12-year sentence.
There is also a web series made about the deceptions and lies of Elizabeth Holmes and her partner, starring Amanda Seyfried. You can see the trailer here:
Categories: Optical Illusion
Source: ptivs2.edu.vn