Elizabeth Holmes, the founder of Terranos, had her conviction upheld by a US court. She defrauded investors of hundreds of millions of dollars through a failed blood test startup that was once valued at $9 billion. Despite refusing to appeal for several years, Holmes was convicted. The court also upheld the conviction of Ramesh “Sunny” Balwani, Holmes’ former romantic partner and president of Theranos.
A three-judge panel at San Francisco’s 9th Circuit Court of Appeals dismissed claims of legal error in separate trials conducted in 2022.
Holmes, who started Terranos as a university student and became its public face, was indicted in 2018 alongside Balwani. They were tried separately and received sentences of 11 years and 3 months and 12 years and 11 months in 2022. Holmes was ordered to compensate investors $452 million, but the penalty was waived due to limited financial resources.
Holmes’ sentence was reduced by over two years for good behavior in prison, leading to her release in 2032 after serving nine years.
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Holmes’ attorney filed an appeal in April 2023, claiming that her trial was marred by improper procedures and evidence presentation.
The US prosecutor countered, stating during the initial appeal hearing in 2024, “It’s undisputed that the device didn’t function,” and highlighting the shortcomings of Theranos’ Edison blood test machine. Holmes asserted that the Edison could draw a single drop of blood from a patient and conduct a variety of medical tests, but her inventions never delivered on their promises.
Before the appeal ruling, Holmes featured on the cover of People magazine for her first interview since being imprisoned earlier that month. She described federal prisons as “hell and torture” and expressed how being incarcerated had changed her.
“The person I used to be must now step aside as I stand here, a prisoner, and face my reality,” she said, reflecting on her two young children and husband.
Source: www.theguardian.com
