Ex-Theranos CEO Elizabeth Holmes to be Freed Early: Two Years Shaving off Prison Sentence
Crime US

Ex-Theranos CEO Elizabeth Holmes to be Freed Early: Two Years Shaving off Prison Sentence

elizabeth homes

Online records indicate that Elizabeth Holmes, the former CEO of Theranos, who was convicted of fraud, is now scheduled for early release from prison. Holmes, a one-time biotechnology entrepreneur based in California, received a sentence of 11 years and three months in November 2022 for defrauding investors in her ill-fated Silicon Valley startup that aimed to revolutionize blood testing.

Federal Bureau of Prisons records reveal that Holmes’ sentence has been reduced to nine years, resulting in a new release date set for December 23, 2032. This implies that she will be released two years earlier than her initial projected release date. Currently 39 years old, Holmes began her prison term on May 30 at a minimum-security federal women’s prison camp in Bryan, Texas.

While the specific details surrounding Holmes’ early release remain undisclosed due to reasons of “privacy, safety, and security,” according to a spokesperson for the federal agency, the Bureau of Prisons has explained that certain inmates may be eligible for early release through court orders, such as compassionate release on the grounds of advanced age or medical conditions, as well as clemency. Additionally, inmates can have their sentences reduced for displaying good conduct, including completing job assignments and substance abuse program courses. Conversely, time gained can be revoked in the case of disciplinary concerns or other infractions.

Holmes’ conviction stems from her involvement with Theranos, a company she founded after dropping out of Stanford University at the age of 19 in 2003. Theranos sought to develop a breakthrough blood testing method that required only a small pinprick of blood to conduct multiple medical tests using sophisticated machines. At its peak, the company reached a valuation of over $9 billion and employed more than 800 individuals. Renowned investors, including Oracle’s Larry Ellison, media mogul Rupert Murdoch, and the Walmart family, showed interest in Theranos.

However, Holmes, along with her former romantic partner and colleague Ramesh “Sunny” Balwani, engaged in deceitful practices by misrepresenting the capabilities of the technology, fabricating the company’s financial situation, and making false claims about partnerships with the Department of Defense and Walgreens, as stated in the indictments. Following a high-profile trial that captivated Silicon Valley, Holmes was found guilty on four felony fraud counts, which resulted in losses exceeding $120 million for victims. Prosecutors highlighted that the overall losses surpassed $800 million. Balwani, Holmes’ former partner, was convicted on 12 counts of fraud and conspiracy and received a prison sentence of approximately 13 years.

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