The start-up Theranos promised to revolutionize blood tests. The founder became a billionaire on paper. But the technology didn’t work. Now Holmes has to go to prison for eleven years.
Former businesswoman Elizabeth Holmes, convicted of fraud, began her more than 11-year sentence on Tuesday.
The US prison administration confirmed to the radio station NPR, among others, that Holmes arrived at the facility in Texas as ordered. A few weeks ago, an appeals court rejected her application to suspend her imprisonment until the appeal process had been completed.
Technology didn’t work
Holmes was the founder and CEO of the start-up Theranos, with which she promised to revolutionize blood tests. With Theranos, only a few drops of blood are said to be sufficient for complex tests. Holmes was celebrated, Theranos reached a valuation of nine billion dollars (8.4 billion euros) in financing rounds. Holmes became a billionaire on paper. But then it turned out that the technology didn’t work. Holmes and her top manager Ramesh Balwani were convicted of allegedly deceiving investors.
Originally, Holmes, who gave birth to two children during the trial, was due to start serving her 11-year, three-month sentence at the end of April. But with her application to suspend the start of detention for the duration of the appeal, this timetable was overturned.
Most recently, the responsible judge Edward Davila set the amount that Holmes and Balwani owe investors at a good 452 million dollars. Balwani has already started his 13-year sentence.
Source: Stern
