Elizabeth Holmes, the founder and former CEO of the now-defunct medical technology company, Theranos, has been denied her request to remain out of prison while she appeals her fraud conviction. Holmes was convicted in January 2022 on one count of conspiracy to commit wire fraud against Theranos investors and three counts of wire fraud, and was sentenced to more than 11 years in prison in November of the same year.
On April 11th, 2023, a federal judge ruled that Holmes did not present a substantial question of law or fact that could lead to a reversal or a new trial. She was ordered to report to a minimum-security facility on April 27.
Holmes had argued that she should be allowed to remain free on bail during her appeal, citing various errors in the presentation of evidence during the trial. The judge also rejected Holmes’ claim that she was not a flight risk, despite having booked a one-way ticket to Mexico with her fiancé shortly after the verdict.
The judge stated that the evidence of Holmes’ misrepresentations to investors was overwhelming and not affected by the disputed issues regarding Theranos technology. However, the judge did accept Holmes’ explanation that the flight ticket was not an attempt to flee the country, but rather a careless oversight that was not promptly canceled.
Holmes became a controversial figure in the business world after she founded Theranos in 2003 and claimed to have revolutionized blood testing with the company’s proprietary technology. However, it was later revealed that the technology did not work as promised, and Holmes was accused of defrauding investors, patients, and business partners. The company ultimately collapsed in 2018, and Holmes has since faced legal troubles.
The denial of Holmes’ request to remain out of prison during her appeal represents the latest setback for the once-prominent entrepreneur. The case has been closely watched as a cautionary tale about the dangers of overhyping technology and making false claims to investors.
