Holmes Owes Murdoch $125m
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Elizabeth Holmes, who committed fraud with Theranos, has to give back all of the $125m that Rupert Murdoch invested in her company. She also needs to pay $452m to everyone who was affected by the scam.
Holmes is 39 years old. The Judge, Edward Davila, told her to start serving an 11-year sentence. She wants to appeal her fraud conviction. She was found guilty after a trial in San Jose, California in 2020.
The woman with two kids was supposed to go to prison on the 27th of April. She tried to postpone it with a legal move at the end of last month.
Holmes shares responsibility for paying the $452m restitution with her ex-partner Balwani. Balwani is in jail for his own trial.
The judge, Davila, will pick a new day for Holmes to go to jail. She lives in San Diego now. She will probably go to a women's prison in Bryan, Texas.
She will soon be put in jail and won't be with her husband and children. Her husband's name is Billy and her kids are William and Invicta. William is 1 year old and Invicta is 3 months old.
The judge, Davila, made two decisions on Tuesday. He ruled on them separately. Davila was the same judge who oversaw the trial and gave the sentence.
. She has been sentenced to 20 years. Holmes has been found guilty for defrauding investors. She lied about her blood testing technology. Her company, Theranos, was valued at $9 billion. Theranos collapsed in 2018. Holmes was the CEO. She was considered one of Silicon Valley’s most promising entrepreneurs. Her downfall has been compared to that of Bernie Madoff. Holmes is set to begin her sentence in September.
Holmes said to The New York Times that she couldn't pay her $30m legal fees.
Judge Davila ordered a big restitution payment. Mr Murdoch is the Fox Corporation chairman. The payment was for him. It was the largest restitution payment.
After her conviction, Mr. Murdoch talked to the Wall Street Journal and said being involved in the scam was embarrassing.
Walmart put $40m in the startup and is waiting to get it back. Safeway is owed $14.5m too.
Holmes got sentenced in November. Prosecutors said she took advantage of investors' hope that a young entrepreneur could improve healthcare.
They said that she used the authority of her impressive board to gain fame, love, and a lot of money.
