Elizabeth Holmes, the founder and former CEO of the Palo Alto blood-testing startup Theranos, has had her prison sentence reduced by nearly two years, her new release date is Dec. 23, 2032
Elizabeth Holmes, the California former biotechnology entrepreneur was sentenced to 11 years and three months in prison after being found guilty on charges of fraud and conspiracy in January 2022.
She was convicted and jailed for defrauding investors in the failed Silicon Valley startup that sought to revolutionize blood testing.
Holmes was also ordered by U.S. District Judge Edward Davila to spend three years under supervised release once her prison term is complete.
The former Theranos CEO is currently serving her prison sentence at Federal Prison Camp, Bryan, a minimum-security prison for female offenders located 100 miles north of Houston.
A spokesperson for the prison authority could not give a reason for the reduction of Holmes’ jail time, citing “privacy, safety, and security reasons.”
According to a statement from the federal agency, some inmates are eligible for release early via court orders such as a compassionate release due to old age and medical conditions or clemency.
The Bureau of Prisons also said that inmates can also have their sentences reduced for good conduct, such as completing job assignments and completing substance abuse program courses.
Likewise, disciplinary concerns or other infractions can also erode one’s reduced time.
Elizabeth Holmes founded Theranos at 19 years old after she dropped out of Stanford University in 2003. The company claimed to have invented a new blood-testing method that could detect disease from just a pinprick.
However, Federal authorities soon found the company’s claims to be false and fraudulent but not before many big and small investors such Larry Ellison, founder of Oracle; Rupert Murdoch, billionaire media mogul; and the Walton family, who founded Walmart, fell victim.
Theranos which was worth over $9 billion with more than 800 employees was shut down in 2018.
The U.S. Court of Appeals for the 9th Circuit on May 16 denied a motion by Holmes to stay out of prison while she appeals her conviction.
According to court indictments, Elizabeth Holmes and her colleague and former romantic partner Ramesh “Sunny” Balwani, lied about the technology, the Theranos finances, and the company’s partnerships with the Department of Defense and Walgreens.
After a lengthy trial, a jury found her guilty on four felony fraud counts associated with a loss to victims of at least $120 million. Prosecutors said the total losses surpassed $800 million.
Ramesh Balwani was convicted on 12 counts of fraud and conspiracy and sentenced to 13 years in prison.