The former youngest self-made female billionaire was sentenced to 11.25 years in prison after being found guilty of fraud. She was found guilty of defrauding investors but not of defrauding patients.
Up to 20 years in prison was the maximum sentence for each of the four counts. Martin Shkreli was sentenced to seven years in prison for securities fraud but was released after four years.
Both sides of the case presented at the courthouse in San Jose. At the original trial,Holmes was only found guilty of fraud.
It took over four hours before the decision was made. Alex Shultz told the court how his son slept with a knife under his pillow because he suspected he was being followed.
Alex Schultz says Holmes hired an investigator to follow his son Tyler Schultz and he slept with a knife under his pillow b/c he thought someone was going to kill him. “My family home was desecrated by Elizabeth and the lawyers,” he says.
— Dorothy Atkins (@doratki) November 18, 2022
She spoke afterwards. She apologized for her failures with her body. The judge delivered his decision that day.
The man is expected to go to prison in April. She is expecting her second child.
Theranos was founded byHolmes after he dropped out of school. She pitched investors and partners on technology that would change the healthcare system by eliminating the need for blood draws and waiting days for test results. She became the CEO of a company with a $10 billion valuation but the technology didn't work.
The criminal trial for Theranos was delayed due to the Pandemic and the birth of her child. She is pregnant with a second child according to a letter from her husband. There are more than two hundred pages of letters from friends, family and business associates, ranging from childhood photos and drawings to notes from high-profile supporters.
The attitude in the venture world is very different from the public's. A lot of startup companies announce and deliver products to the market before they are ready.
The former CEO's sentencing was further delayed because her lawyers tried to request a new trial, arguing that new evidence had come to light after the ex-Theranos lab director visited her at home.
Rosendorff was a witness for six days during the trial. The testimony of Rosendorff was crucial to the trial. He said that she pushed for the technology to be used on patients even though she knew it produced inaccurate results. He quit the company after raising his concerns about the technology.
According to his lawyers, Rosendorff expressed guilt when he visited her home this summer. The judge found no merit to the allegations. Last year's testimony was accurate, according to Rosendorff. The former lab director said he was sorry for the child but not for the mother if she is sent to prison.
The COO of Theranos is awaiting sentencing. He was found guilty of defrauding both patients and investors in his own trial and was sentenced to 12 years in prison.
What’s left to learn from Theranos? Have friends.
Elizabeth Holmes convicted of 4 of 11 fraud counts in Theranos trial
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