Theranos: Elizabeth Holmes loses appeal and will be arrested – 05/17/2023 – Market

Former Silicon Valley star Elizabeth Holmes is set to begin serving a prison sentence after a judge denied her latest request to remain free while she appeals her fraud conviction.

Holmes was sentenced to just over 11 years in prison for defrauding investors with her Silicon Valley-based biotechnology company Theranos, which promised a revolution in healthcare diagnostics.

She should have started serving her sentence on April 27, but her lawyers filed a last-minute appeal on procedural grounds after an earlier attempt was denied.

On Tuesday, Judge Edward Davila denied the new petition and, in a separate decision, ordered Holmes and his right hand man at Theranos, Ramesh “Sunny” Balwani, to pay $452 million (roughly 2 .2 billion reais at the current exchange rate) to the victims of his fraud.

According to the local press, Davila has not yet decided on a new date for her arrest and has recommended that she serve her sentence in a women’s prison in Texas.

Holmes, 39, was found responsible for misleading investors into believing she had developed a revolutionary medical device.

She became a Silicon Valley star when she announced that her company was developing an easy-to-use kit capable of covering a wide range of diagnoses with just a drop of blood.

His company flopped after a Wall Street Journal investigation into the validity of the tests.

Elizabeth Holmes had one child shortly before her trial and another since her conviction.