Elizabeth Holmes Loses Final Bid to Stay Out of Prison
Elizabeth Holmes lost her final request to remain free on bail while she appeals her fraud conviction.
(Bloomberg) -- Elizabeth Holmes lost her final request to remain free on bail while she appeals her fraud conviction.
The ruling Tuesday by the US Court of Appeals in San Francisco means the Theranos Inc. founder will soon have to report to prison to begin her 11 1/4-year sentence after she was convicted by a jury last year of defrauding investors in the blood-testing startup.
Read More: Elizabeth Holmes Judge Proposes Texas Prison, Family Visits
Holmes had won a brief pause delaying the start of her prison term while the appeals court considered her request. She can still pursue her appeal of her conviction, but must do so from prison.
Former Theranos President Ramesh “Sunny” Balwani’s similar request was also denied. He reported to prison last month to begin his 13-year sentence.
Read More: Elizabeth Holmes Makes Plea to Put Off Prison as She Appeals
In a separate order, US District Judge Edward Davila, who presided over the trials of both Holmes and Balwani, ordered them to pay $452,047,268 in victim restitution, saying they are jointly liable for the amount. Davila determined that $125 million is owed to Theranos investor Rupert Murdoch and the judge designated lesser amounts for 13 other victims. Both Holmes and Balwani have said in court filings they can’t afford to pay the nine-figure sums the government demanded from them.
The case is USA v. Holmes, 18-cr-00258, US District Court, Northern District of California (San Jose).
(Updates with details of ruling in third paragraph.)
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