Theranos fraudster Elizabeth Holmes gets 11-year prison term

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Elizabeth Holmes, Founder & CEO of Theranos, Convicted of Fraud

The former billionaire has been convicted and sentenced after it was revealed that her blood-testing company hadn’t achieved the breakthroughs it claimed.

Guilty on Multiple Counts

Elizabeth Holmes, the founder and CEO of disgraced blood-testing company Theranos, has been found guilty on three counts of wire fraud, as well as a count of conspiracy to commit fraud along with her co-founder Sunny Balwani.

Awaiting Appeal & Sentencing

On November 18th, 2022, she was sentenced to 135 months, or about 11 and a half years, in prison for defrauding 10 victims out of $121 million. She is appealing the ruling. However, a judge has determined she must begin serving her sentence on May 30th, 2023, and that she and Balwani owe the victims of their fraud $452 million.

The Rise and Fall of Theranos

Theranos was once valued as high as $9 billion, and Holmes was a darling of Silicon Valley, sporting black turtlenecks that prompted comparisons to Steve Jobs.

Exposé Uncovers Issues

That changed after John Carreyrou’s exposé was published in The Wall Street Journal. In that article, Carreyrou wrote that Theranos was using its own device for only a handful of tests and that other employees were concerned that the device wasn’t accurate.

Lab Issues and Broken Partnerships

Then it came out that Theranos’ labs weren’t up to par, and its partnerships with Safeway and Walgreens fell apart. Also, Theranos junked two years’ worth of test results. Eventually, Holmes was banned from operating labs, and Theranos dissolved in 2018.

Conclusion

The downfall of Elizabeth Holmes and Theranos serves as a cautionary tale of the consequences of fraud and deception. Despite their initial success and popularity, the truth eventually came to light, and justice was served.

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