Elizabeth Holmes loses prison escape attempt

Elizabeth Holmes loses prison escape attempt

(CNN) Elizabeth Holmes’ last-minute attempt to avoid jail time was rejected by an appeals court on Tuesday, paving the way for the disgraced Theranos founder to begin serving her sentence.

In a separate judgment Tuesday, Holmes was also ordered to pay $452 million in compensation to those harmed by their crimes, including Theranos investors like media titan Rupert Murdoch.

Holmes was previously ordered to take herself into custody and begin her 11-year sentence on April 27 after being convicted on multiple counts of investor fraud last January.

Days before her sentence was due to begin, Holmes filed a last-minute appeal in the Ninth Circuit Court of Appeals and attempted to remain free on bail while she fought to have her conviction overturned.

In a filing Tuesday, the Ninth Circuit Court denied her request to remain at large pending her appeal on bail. A new date for the handover of Holmes in prison has not yet been set. In a filing filed Wednesday, Holmes’ attorneys asked a judge to set a new surrender date for May 30.

Also on Tuesday, District Judge Edward Davila ordered Holmes and her ex-boyfriend and former Theranos COO Ramesh “Sunny” Balwani to pay victims of their crimes around $452 million in compensation. Holmes and Balwani “are jointly and severally liable for that amount,” Davila wrote in the filing, meaning each could be individually liable for the entire amount.

Balwani was charged alongside Holmes and convicted of fraud in a separate trial. He reported to jail last month to begin serving his nearly 13-year sentence after losing a last-minute appeal similar to Holmes’.

Holmes left Stanford at age 19 to focus fully on Theranos, the health tech startup that claimed to have invented technology that could use just a few drops of blood to perform precise tests for a range of conditions. Theranos raised $945 million from an impressive list of investors and was valued at around $9 billion at its peak — making Holmes a paper billionaire.

The company faltered after a 2015 Wall Street Journal investigation found that Theranos had only run about a dozen of the hundreds of tests it had using its proprietary technology, and even those with questionable accuracy. It also turned out that Theranos relied on third-party-made equipment from traditional blood-testing companies, rather than its own technology.