US seeks 15-year term for Theranos founder in fraud case

Former Theranos CEO Elizabeth Holmes arrives in court with partner Billy Evans in October 2022 in San Jose, California

Former Theranos CEO Elizabeth Holmes arrives at court with partner Billy Evans in October 2022 in San Jose, California.

US federal prosecutors are seeking a 15-year prison sentence for Theranos founder Elizabeth Holmes and want her to pay more than $800 million to investors misled by her blood-testing startup. , according to court records.

“The government asked the Court to sentence the defendant to 180 months in prison and ask her to pay $803,840,309 in restitution,” one apply to court filed Friday by U.S. Attorney Stephanie Hinds.

The hard-worded filing said Holmes was “blinded by … ambition”, and that her “field of reality distortion has and will continue to hurt people.”

Holmes once claimed to revolutionize health diagnostics with self-service machines that could run a series of tests on just a few drops of blood, but the company collapsed following a Wall Street report. Journal in 2015 revealed that the machine was not working as promised.

Key investors in the startup include grocery store chain Safeway and pharmacy chain Walgreens, as well as former US Secretary of State George Shultz.

Holmes’ attorneys, in their own filing, asserted that her detention would serve no purpose – saying she poses no danger, is willing to admit her mistakes and makes no profit. physically from the scam – but if the court decides to go to jail it should happen. no more than 18 months.

Competitor profiles arrived just days after federal judge denied Holmes’ request for a new trial after she was found guilty in January of defrauding investors.

Holmes’s startup attracted celebrity backers and made her a billionaire in the press by the age of 30.

In 2015, Forbes magazine named Holmes the country’s richest self-made female billionaire, but a year later the magazine revised her estimated net worth down to zero.

A grand jury in California found Holmes to be guilty of four counts of defrauding investors.

Sentencing is scheduled for November 18.

© 2022 AFP

Quote: US seeks 15-year term for Theranos founder in fraud case (2022, 12 Nov) retrieved 12 Nov 2022 from -year-term-theranos-founder-fraud.html

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