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Elizabeth Holmes, founder of the not-so-innovative blood-testing company Theranos, has been making headlines for nearly a decade.
She was once considered an impressive young entrepreneur, but a shocking wall street journal In 2015, it was revealed that her blood-testing technique was inaccurate and misreported to thousands of people.
Holmes stepped down as CEO of Theranos in 2018 and was found guilty of four fraud-related charges in January 2022.
The story was fictionalized by streamer Hulu in March 2022’s “The Dropout” with Amanda Seyfried, who won an Emmy for her portrayal of Holmes.
Image credit: GLENN CHAPMAN/AFP via Getty Images
What was Elizabeth Holmes’ verdict?
Elizabeth Holmes was sentenced to death 11.25 years in prison He was subsequently released under supervision for three years after giving testimony for more than three hours on Friday 18 November. Live coverage of NBC Bay AreaShe will have to surrender at a later date. She appeared to be pregnant with her second child and appeared in court, according to a video obtained by . wall street journal.
How much Holmes needs to repay investors will be determined at a later date, says NBC’s Scott Budman murmured from court.
Holmes said in the judgment: state“I regret my failure in every cell of my body.”
Elizabeth Holmes (with tears): “I am devastated by my failures. I failed them and I feel deep pain for what people have gone through.”
“To our investors and our patients, we are sorry.”
— Scott Budman (@scottbudman) November 18, 2022
Who is Elizabeth Holmes?
Elizabeth Holmes’ journey began in 2002 at Stanford University., She planned to study medicine until she realized she was scared of needles and blood. Inspired by her own cunning, she patented a wearable medical device that could monitor a patient’s blood and administer medication as needed. business insider.
Only two years later, Holmes She dropped out of Stanford University and started her company Theranos out of the basement.
Holmes told investors that he has a unique technology that can detect cancer and other medical conditions from a single drop of blood. In addition, she has led investors to believe that Theranos offers her over 200 diagnostic tests. BBC.
Based on these promises, she was able to secure over $700 million in investments from celebrities, including Oracle founder Larry Ellison. By emphasizing the importance of confidentiality, she was able to get investors’ money without revealing how the technology works.
Along with COO Sunny Sunny Balwani — it was later revealed that Holmes and Balwani had been secretly dating while working together — the duo founded the company under the mistaken notion that technology works. and installed their blood test machine, the Edison.
They went on to raise millions of dollars, including several partnerships with major healthcare brands such as Walgreens. CNNand a $350 million deal with Safeway.
Through it all, Holmes branded herself as “Girl Boss” and graced the covers of Forbes and Fortune.
Image Credit: Photo by Michael Kovac/Getty Images for Vanity Fair Source
But Theranos chief scientist Ian Gibbons warned Holmes that the technology had inaccuracies and was not ready for public release.
In August 2015, the FDA launched an investigation after finding “significant inaccuracies” in Theranos testing, and just two months later, the WSJ announced that it had received inaccurate results from its own Edison machine. , revealed that the company was testing blood samples with a conventional blood test machine.
In 2016, the company was investigated by the FDA, SEC, and the Centers for Medicare & Medicaid Services (CMS). CNN According to a letter sent to Theranos by authorities, it determined that “the inadequate practices of the laboratory pose an imminent danger to the health and safety of patients.”
These findings led Theranos to void blood testing for two years, amend thousands of reports according to CNN, and agency banned Holmes from running a blood testing lab for two years. Walgreens has closed 40 of his Theranos wellness centers.
What happened to Theranos?
According to CNN, after Theranos’ lab closed, Holmes tried to revive it with another product called “MiniLab.”
As Theranos focused on MiniLab and tried to fight off a number of lawsuits from investors, the company laid off 155 employees.
Then, in March 2018, the SEC charged Holmes and Balwani, who left the company in 2016, with “massive fraud.” They said he was indicted in June on nine counts of wire fraud and his two counts of conspiracy to commit wire fraud.
Because Theranos was a privately held company, Holmes was allowed to retain his position as CEO, but in addition to paying a $500,000 fine and returning $18.9 million in Theranos stock, Holmes was forced to reinstate the company’s finances. and had to relinquish control of voting rights. On the same day Holmes was indicted, Theranos announced that she was stepping down as CEO.
In September 2018, the company announced the end of its 15-year operation.
Image credit: David Paul Morris/Bloomberg via Getty Images
Where is Elizabeth Holmes now?
Despite Holmes’ pressing legal issues, her trial has been postponed due to the birth of her first child in July 2021.
During her trial, Holmes accused Sunny Balwani of abuse, which he denied. Guardian.
She was found guilty in four of 11 federal indictments in January 2022. This includes her one case of conspiracy to deceive investors and her three cases of wire fraud.
Holmes is currently released on $500,000 bail, but could face up to 20 years in prison, a $250,000 fine, and restitution on each count.
Prosecutors sought a 15-year sentence and $800 million in damages, the Guardian said, “reflecting the seriousness of the crime, providing fair punishment for the crime, and deterring Holmes and others.” ” he said.
Holmes’ attorney, on the other hand, 18 months of house arrest And no jail time.
She was sentenced to 11 years in prison on November 18.
She appears to have welcomed her second child, according to an appeal she filed in court citing her two children ahead of her sentencing, which is set to begin in April.
“Ms Holmes has strong ties to the community. She is the mother of two young children. She has also filed a voluntary complaint with a rape crisis and counseling organization,” the filing said. CBS.
Sunny Balwani was convicted in July 2022 of 10 counts of federal wire fraud and two counts of conspiracy to commit wire fraud.
What is Elizabeth Holmes Net Worth?
When Holmes was 30, forbes She was named the world’s youngest self-made female billionaire with a net worth of $4.5 billion. But in 2016, when various allegations against Holmes came to light, the outlet reassessed that figure.
At the time, experts determined that: $800 million was a more realistic figure, but since she only owned half of Theranos’ stock and many investors had to pay it back, outlets ruled her net worth at zero.
In 2019, Holmes married William “Billy” Evans, who manages three properties in San Diego and is heir to the Evans Hotel Group started by his grandparents in 1953. business insider.
The exact value of Evans or his family is unknown, but during her trial, CNBC We learned that the couple lived on a 74-acre property worth $135 million in Woodside, California.