May 18, 2023 - Economy

Theranos founder Elizabeth Holmes must start prison sentence May 30

Rebecca Falconer

Former Theranos CEO Elizabeth Holmes walks back to her hotel following a hearing at the Robert E. Peckham U.S. Courthouse on March 17, 2023 in San Jose, California. — Former Theranos CEO Elizabeth Holmes walking back to her hotel following a March court hearing in San Jose, California. Photo: Philip Pacheco/Getty Images

Theranos founder Elizabeth Holmes must begin serving her prison sentence by May 30 while she appeals her conviction on charges of defrauding investors in her failed blood-testing startup, a federal judge ruled Wednesday.

Driving the news: U.S. District Court Judge Edward Davila issued the order after the United States Court of Appeals for the Ninth Circuit on Tuesday rejected Holmes' request to remain on bail as she appeals the case.

In a separate ruling Tuesday, Davilia ordered Holmes and Ramesh "Sunny" Balwani, Theranos' former president and chief operating officer, to pay $452 million in restitution to victims.

The big picture: Holmes was sentenced in November to 11 years and three months in prison for conspiracy and fraud against certain investors and was originally scheduled to begin her prison sentence on April 27, but this was delayed while the appeals court weighed her request.

Balwani was sentenced in December to 12 years and nine months in prison, plus three years of probation, for conspiracy and fraud against certain investors and patients.
Theranos investors included Rupert Murdoch, Oracle founder Larry Ellison, former Education Secretary Betsy DeVos, ex-Defense Secretary Jim Mattis, the Walton family and the Cox family.

Go deeper: Elizabeth Holmes and SBF exemplify dangers of insufficient oversight

Editor's note: The Cox family owns Cox Enterprises, the owner of Axios.

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Theranos founder Elizabeth Holmes must start prison sentence May 30

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