Founder and CEO of failed blood-testing company Theranos, Elizabeth Holmes, has been sentenced to 11 years and 3 months in federal prison. She was convicted for her role in committing fraud that saw her company rise to the heights of Silicon Valley before crashing in disgrace.
Holmes was convicted last January of four counts of lying to Theranos investors about technology and the company’s financial health. She was facing a possible maximum of 20 years in prison. She told the court that she regrets her failings and then quoted a poem saying “Yesterday I tried to change the world. Today I’m wise, and want to change myself.”
Presiding Judge Edward Davila said the case was troubling on so many levels. Judge Davila ordered Holmes to surrender to the authorities on April 27, 2023. The company was originally valued at nearly $9 billion before it fell victim to scandal and fraud. Theranos grew so rapidly because of its massive hype and the charisma of Holmes. Holmes managed to pitch investors and key members of society, including two former senators and former Secretary of State Henry Kissinger, who ended up becoming board members.
The technology Theranos used was just repurposed available blood analysis technology able to run on smaller amounts of blood. Former employees testified Theranos would delete erroneous results from its tests to make its machines seem more accurate. Company executives also falsified company reports, including some showing inflated revenues. Federal prosecutor Jeff Schenk called Elizabeth Holmes’ actions were not just callous but criminal.
Elizabeth Holmes pleaded not guilty with a defense centering on allegations against former Theranos president and COO Ramesh Balwani. Holmes alleged Balwani lied to her about the company’s financial models. Balwani was convicted of fraud in July and will be sentenced on Dec. 7.
