FOX Business host Cheryl Casone has the latest on Sunny Balwani being found guilty of 12 counts of fraud for a Theranos scam on ‘The Claman Countdown.’
Elizabeth Holmes, the disgraced Theranos founder convicted on multiple counts of fraud, reported on Tuesday to the Texas prison where she has been sentenced to spend the next 11 years.
Holmes, 39, was due to arrive at a women’s prison camp located in Bryan, Texas by 2 p.m. local time. The facility is located near her hometown of Houston, granting her greater access to family members.
Holmes has a nearly 2-year-old son and a 3-month-old baby, who she conceived after her conviction and prior to sentencing. The children will be raised by their father, her partner, Billy Williams. Most recently the family lived in San Diego, California.
According to a former inmate at the Texas facility, Holmes will be allowed up to 300 minutes per month to speak with loved ones on the phone and will be able to receive visitors on weekends. Some inmates at Bryan are already reportedly anxious to befriend her.
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Elizabeth Holmes enters Federal Prison Camp in Bryan, Texas, Tuesday, May 30, 2023. Holmes will begin serving her 11 year sentence for fraud and conspiracy in relation to misdeed at her company Theranos. (Splash News)
Elizabeth Holmes enters Federal Prison Camp in Bryan, Texas, Tuesday, May 30, 2023. Holmes will begin serving her 11 year sentence for fraud and conspiracy in relation to misdeed at her company Theranos. (Splash News)
Elizabeth Holmes enters Federal Prison Camp in Bryan, Texas, Tuesday, May 30, 2023. Holmes will begin serving her 11 year sentence for fraud and conspiracy in relation to misdeed at her company Theranos. (Splash News)
Holmes has been out on bail since a jury found her guilty on four counts of fraud and conspiracy in January 2022, and is currently appealing her conviction to the Ninth Circuit Court of Appeals, which earlier this month denied her request to remain free while it considers her case.
The former Silicon Valley darling was originally indicted on 11 charges, acquitted of four, and the jury could not reach a verdict on the remaining three.
Holmes’ incarceration marks a stunning fall from grace for the former CEO who dropped out of Stanford University at the age of 19 to launch Theranos, becoming a billionaire on paper after raising more than $900 million from investors on promises that its blood-testing technology could diagnose diseases with just a few drops of blood.
Federal Prison Camp Bryan in Bryan, Texas. (Federal Bureau of Prisons)
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But her empire began to unravel in 2015 after The Wall Street Journal exposed that Theranos was using traditional machines for its testing rather than its own technology, and pointed to flaws in its diagnostics.
Holmes was indicted in 2018 along with her former lover and top Theranos lieutenant, Ramesh “Sunny” Balwani, who is already in prison after being convicted on a broader range of felonies in a separate trial.
Sunny Balwani, former president of Theranos Inc., arrives at federal court in San Jose, California, on Dec. 7, 2022. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
U.S. District Judge Edward Davila oversaw the proceedings and determined sentencing for both Holmes and Balwani, and denied each of their multiple requests for new trials.
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Davila also held Holmes and Balwani jointly liable for paying some $452 million in restitution to the victims of their crimes.
Fox News’ Kassy Dillon contributed to this report.
