Disgraced Theranos founder Elizabeth Holmes to begin 11-year jail sentence
What's the story
The day has finally arrived for disgraced Theranos founder Elizabeth Holmes. Over a year after a jury found her guilty of four counts of fraud, the 39-year-old is set to begin her prison sentence on Tuesday. Holmes has been out on bail since her conviction. Once hailed as the "next Steve Jobs," she is now regarded as an example of ambition gone wrong.
Context
Why does this story matter?
The biotechnology wunderkind who took Silicon Valley by storm with her revolutionary blood testing kit is now staring at an uncertain future. Holmes's conviction is a watershed moment in white-collar crime jurisprudence. White-collar criminals often receive a slap on the wrist for their wrongdoings. But her time in prison will serve as a reminder for others who try to defraud investors and the public.
Prison time
Federal court rejected her bid to stay out
It was confirmed Holmes would start her time in prison on Tuesday (May 30) after the US Court of Appeal for the Ninth Circuit rejected her latest bid to remain out of prison. The new date was set after she deployed a last-minute legal maneuver by filing an appeal against her conviction. She was previously required to surrender on April 27.
Delay
Court granted Holmes time to sort out some issues
Holmes, however, was granted some time by the appeals court to sort out some issues, including the child care for her one-year-old son and three-month-old daughter. The court extended her bail through Memorial Day weekend. Unless she pulls off another rabbit out of the hat, she would begin her sentence on Tuesday. The probability of that is very low.
The prison
Might be incarcerated in minimum-security, all-female prison
The district judge in her case, Edward Davila, recommended that Holmes be put in a minimum-security prison. She is expected to be incarcerated in a prison camp in Bryan, Texas, 160km northwest of Houston, her hometown. It is an all-female facility that houses 655 inmates presently. She can expect 6:00am wake-up calls, chores, and jobs that pay between 12-40 cents an hour there.
Sentence
Holmes ordered to pay $452 million to investors
Along with the 11-year sentence, Holmes was also ordered to pay $452 million to investors she defrauded. She will be liable for that alongside her trusted lieutenant, co-conspirator, and former boyfriend Ramesh "Sunny" Balwani. Balwani was found guilty of 12 counts of fraud and conspiracy. Both of them have filed appeals to overturn their convictions.