Key takeaways:
- The Ninth Circuit Court of Appeals has rejected Elizabeth Holmes’ bid to remain free while she appeals her conviction of defrauding investors.
- Judge Edward Davila of the Northern District of California has ruled that Holmes must pay $452 million in restitution to victims of Theranos’ fraud.
- The appeals court’s decision marks the end of Holmes’ attempts to remain free while she appeals her conviction, and serves as a reminder of the consequences of fraud.
Disgraced Theranos CEO Elizabeth Holmes has been denied her last-ditch attempt to remain free while she appeals her conviction of defrauding investors. The Ninth Circuit Court of Appeals rejected her bid on Tuesday, leaving her to serve her 11-year sentence.
Holmes was initially scheduled to report to prison on April 27, but the reporting date was automatically delayed with her latest appeal. Judge Edward Davila of the Northern District of California also ruled that Holmes must pay $452 million in restitution to victims of Theranos’ fraud, including a group of investors and former Theranos partners Walgreens and Safeway.
The conviction stems from a blood-testing hoax that brought Holmes fleeting fame and fortune. She is being held jointly liable for the restitution amount with her former lover and top Theranos lieutenant, Ramesh “Sunny” Balwani, who is already in prison after being convicted on a broader range of felonies in a separate trial.
The appeals court’s decision marks the end of Holmes’ attempts to remain free while she appeals her conviction. It is unclear when she will be required to report to prison, but it is likely to be soon. The ruling serves as a reminder of the consequences of fraud and the importance of holding those responsible accountable.
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