To the surprise of many, Elizabeth Holmes has received a reduced prison term for Theranos fraud. The businesswoman, who last November was sentenced to 11 years and 3 months in prison, will be able to leave sooner than expected.
What is striking about this situation is that the reduction in the sentence of Elizabeth Holmes has occurred in silence, without giving explanations. Guardian reports that his profile on the United States Federal Bureau of Prisons website has been modified to indicate that his new release date is scheduled for December 29, 2032.
This means a reduction of about two years from your original sentence.. The North American organization has confirmed the lowering of the sentence, but has refused to detail why. It is worth mentioning that the US prison system allows shortening sentences under the commitment to comply with certain conditions. From good behavior to undergoing rehabilitation processes in the case of addictions, among others.
As for Elizabeth Holmes, her new release date implies that she will spend 9 years and 7 months in jail, instead of the original 11 years and 3 months. The Theranos founder began serving her sentence at the end of May in a minimum-security federal prison in Bryan, Texas.
Elizabeth Holmes receives a slight reduction in her sentence
It is worth mentioning that Elizabeth Holmes has not been the only one involved in the Theranos case who has received a reduction in her sentence. Sunny Balwanihis co-conspirator in the lab’s investor fraud that promised to revolutionize blood testing, has also received a similar sentence cut.
Balwani, who was found guilty in a separate trial, was due to serve 13 years in jail. However, he will now be able to regain his freedom in 2034, two years earlier than originally scheduled.
The Theranos fraud is considered one of the biggest fiascos in Silicon Valley history.. Elizabeth Holmes became a star in the technology sector overnight, thanks to her promise to create a device capable of detecting hundreds of diseases from a single drop of blood. However, her project was always based on a fallacy.
With an increasingly visible media profile, Elizabeth Holmes managed to win the interest of the press and the business world. Theranos received hundreds of millions of dollars in investment and achieved a valuation of $9 billion, leading to the businesswoman being listed as a “the new Steve Jobs”. Nevertheless, The Wall Street Journal exposed the scam in 2015, and the company fell apart in 2018 following an SEC fraud accusation.
For several years, Elizabeth Holmes tried to avoid a prison sentence. However, she never achieved a mistrial and was found guilty of four counts of fraud. Now, despite her reduced sentence, she must serve at least 85% of her sentence in prison, plus another three years of probation. Besides, will have to pay more than 450 million dollars in compensation to defrauded investors.