US federal prosecutors are demanding that former billionaire Elizabeth Holmes pay $250 a month to victims of Theranos, her blood testing company, after her release from prison.
Holmes’ lawyers say she doesn’t have the money to pay. They say they have “limited financial resources”.
At the height of Theranos’ positive image, Holmes’ equity as a partner in the company was estimated at $4.5 billion.
1 of 1 Elizabeth Holmes waves as she enters a Texas prison on May 30, 2023 Photo: Go Nakamura/Portal Elizabeth Holmes waves as she enters a Texas prison on May 30, 2023 Photo: Go Nakamura/Portal
Who is Elizabeth Holmes?
Elizabeth Holmes is an American businesswoman best known as the founder and former CEO of Theranos, a medical technology company founded in 2003 with the stated goal of revolutionizing the blood testing industry (the company promised to draw a small sample of blood from it). the patients with a slight prick of the finger, and with this material he could carry out several tests).
Holmes caught the attention of the US business and investment community and secured significant investment in Theranos by claiming its innovative technology could accurately and quickly detect a variety of diseases. But in 2015, journalistic research brought to light serious misconduct in the company. The tests were not effective and the company engaged in fraudulent practices.
In 2018, Holmes and his former business partner Ramesh Balwani were accused of fraud by the US government. They have been accused of misleading investors, doctors and patients about the effectiveness of the Theranos studies. In 2021, Holmes was found guilty of multiple counts of fraud.
After the trial, Holmes was sentenced to 11 years in prison, which she served in September 2022. The story of Elizabeth Holmes and the fall of Theranos has become one of the most infamous corporate fraud cases in recent US history. UNITED STATES .
Refunds
In a May 16 ruling, federal judge Edward Davila ordered Holmes and Balwani, who is serving a nearly 13year sentence in California, to pay the victims $452 million in damages.
Last week, prosecutors asked for a timeline to be set for repaying the money raised from investors. These payments were to be made after Holmes’ release from prison.
Federal prosecutors are requiring Holmes to pay at least $250 a month, or 10% of his earnings, whichever is greater, in compensation after his release from prison.
Holmes’ legal representatives have argued that she was nearly bankrupt as she spent millions of dollars on services related to her defense.
Holmes, 39, was serving an 11year sentence in a Texas minimumsecurity prison late last month.