Business Maverick

Business Maverick

Elizabeth Holmes loses final bid to stay out of prison

Elizabeth Holmes loses final bid to stay out of prison
PHILADELPHIA, PA - OCTOBER 05: Elizabeth Holmes, Founder & CEO of Theranos speaks at Forbes Under 30 Summit at Pennsylvania Convention Center on October 5, 2015 in Philadelphia, Pennsylvania. (Photo by Lisa Lake/Getty Images)

Elizabeth Holmes lost her final request to remain free on bail while she appeals her fraud conviction.

The ruling on Tuesday by the US Court of Appeals in San Francisco means the Theranos founder will soon have to report to prison to begin her 11-year sentence after she was convicted by a jury last year of defrauding investors in the blood-testing startup.

Read More: Elizabeth Holmes judge proposes Texas prison, family visits

Holmes had won a brief pause delaying the start of her prison term while the appeals court considered her request.  She can still pursue her appeal of her conviction, but must do so from prison.

Former Theranos president Ramesh “Sunny” Balwani’s similar request was also denied. He reported to prison last month to begin his 13-year sentence.

In a separate order, US District Judge Edward Davila, who presided over the trials of both Holmes and Balwani, ordered them to pay $452,047,268 in victim restitution, saying they are jointly liable for the amount. Davila determined that $125-million is owed to Theranos investor Rupert Murdoch and the judge designated lesser amounts for 13 other victims. Both Holmes and Balwani have said in court filings they can’t afford to pay the nine-figure sums the government demanded from them. BM/DM


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