Elizabeth Holmes has surrendered to federal prison in Texas to begin serving an 11-year term for defrauding investors with her once high-flying blood-testing company Theranos.
The charges Holmes was found guilty of include one count of conspiracy to defraud investors, as well as three wire fraud counts tied to specific investors. Holmes faces up to 20 years in prison as well as a fine of $250,000 plus restitution for each count.
Wearing a beige sweater, jeans and sneakers, the 39-year-old mother of two was directed into Federal Prison Camp in Bryan, Texas, by staff from the Federal Bureau of Prisons minutes before a court-imposed deadline of 2pm on Tuesday.
A federal appeals court rejected her bid to remain out of prison earlier this month while she attempts to overturn her January 2022 conviction on four felony counts of fraud and conspiracy.
A delay was granted to give Holmes time to sort out child care for her one-year-old son William and three-month-old daughter Invicta. Holmes had originally been ordered to begin her prison sentence on 27 April.
ABC News:
Holmes might have a humbling first job at the prison, according to a former inmate at the facility.
“That is Bryan’s rule,” said Lynn Espejo, who was convicted of defrauding her employer. “The policy is that every new person arriving gets cleared by medical and they have to go work in the kitchen for 90 days.”
“There are four units at the prison camp facility, which is among the lowest-level security facilities in the federal system.”
“But Espejo said it isn’t “camp cupcake,” as some describe it. She recalled “dilapidated” conditions when she served time there, including moldy showers and little hot water in the winter.
A source said that every Friday, Saturday and Sunday night, movies are shown in common areas.
“Holmes won’t be locked behind bars in her cell. Rather she’ll live in a room with two bunks and folding chairs in the middle.”
Espejo said the hardest adjustment is being alone.
Holmes admitted making mistakes at Theranos, but steadfastly denied committing crimes during seven often-fascinating days of testimony on the witness stand during her trial. At one point, she told the jury about being sexually and emotionally abused by Balwani while he controlled her in ways that she said clouded her thinking. Balwani’s attorney steadfastly denied Holmes allegations, which was one of the key reasons they were tried separately. -ABC News
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