Theranos Founder Elizabeth Holmes to Spend More Than 11 Years in Prison

A federal judge handed former Theranos founder/CEO Elizabeth Holmes a 135-month prison term on Friday, calling her ambitions “an exciting venture” that was “dashed by misrepresentations, hubris, and just plain lies.”

U.S. District Court Judge Edward Davila also fined Holmes $400, or $100 for each count of her fraud conviction. He ordered the soon-to-be mother of two to turn herself into custody on April 27, 2023 to begin serving her 11-year, three-month prison term. She is likely to appeal the punishment, and hoping to remain free on bail until a decision has been made about the appeal.

Holmes’ sentencing occurred 10 months after a jury convicted her of four counts of wire fraud in connection with her now-defunct blood testing company, Theranos. The panel acquitted Holmes of four other wire fraud counts and deadlocked on three counts of deceiving investors. Prosecutors had asked for a 15-year prison term, but her legal team pushed for leniency, recommending an 18-month home confinement punishment followed by probation and community service. Holmes faced a maximum 20-year prison sentence and $250,000 fine plus restitution for each fraud count.

Before receiving her punishment, Holmes apologized to the people she wronged in building her Silicon Valley startup, reportedly telling the court through tears (according to CNN), “I loved Theranos. It was my life’s work. The people I tried to get involved with Theranos were the people I loved and respected the most. I am devastated by my failings. I am so, so sorry. I gave everything I had to build our company and to save our company. I regret my failings with every cell in my body.”

Holmes’ support network—which includes Stanford University professors, venture capitalists, and U.S. Sen. Cory Booker (D-N.J.)—claim Holmes is a “virtuous” person who was a victim of circumstances. But Holmes herself admitted putting Pfizer and Shering-Plough letterhead on documents she sent to potential business partners and investors without the companies’ consent. And the U.S. government presented evidence (via a Fortune interview) that Holmes lied about performing work for overseas pharmaceutical companies and a few foreign governments. 

In court filings, prosecutors argued for a long prison sentence, telling the judge such a punishment would help “deter future start-up fraud schemes” and rebuild investor trust, The New York Times reported. Yet one of Holmes’ attorneys, Kevin Downey, reminded Davila that his client did not spend her riches on yachts or planes; rather, she reinvested her earnings back into the company. Holmes founded Theranos in 2003 as a 19-year-old aspiring entrepreneur. She built the company on the promise it would revolutionize healthcare by testing for numerous conditions on just a few drops of blood—a claim proven untrue through a Wall Street Journal expose in 2015.

During her trial, Holmes claimed former President COO (and ex-boyfriend) Ramesh “Sunny” Balwani ran Theranos, and accused him of both sexual and emotional abuse during their decade-long relationship. Balwani has denied the accusations. 

A jury convicted Balwani in July of 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. He faces a maximum 20-year prison term when he is sentenced early next month.   

Want more of this story? Check out previous writings that follow the Theranos tale.
February 2016 – The Cautionary Tale of Theranos
May 2016 – Half-Hearted Attempts at Transparency Aren’t Enough at Theranos
June 2016 – Walgreens Terminates Relationship with Theranos
July 2016 – CMS Bans Theranos’ Holmes from Lab for 2 Years
August 2016 – Theranos’ Elizabeth Holmes Speaks at AACC Meeting [Video]
October 2016 – Letter From Elizabeth Holmes: Theranos to Close Labs/Wellness Centers, Lay Off 340
March 2018 – Theranos’ Holmes and Former President Balwani Charged with Massive Fraud
May 2018 – Theranos: Not Long for the Business World?
June 2018 – Theranos Founder, Former Chief Operating Officer Charged With Alleged Wire Fraud
April 2019 – Fake It Until You Make It: Comments on the Theranos Documentary
October 2021 – Elizabeth Holmes’ Story of Theranos’ Rise and Fall
January 2022 – Ex-Theranos CEO Elizabeth Holmes Found Guilty on 4 Fraud Charges
May 2022 – ‘The Dropout’—Medtech’s Theranos Scandal on Television
June 2022 – Theranos Fraud Trial, Part II: The Blame Game Continues
November 2022 – A New Home for Theranos’ Elizabeth Holmes?