Why has Elizabeth Holmes' jail term been reduced? Theranos CEO granted reprieve
BRYAN, TEXAS: Disgraced Theranos CEO Elizabeth Holmes' prison sentence has been reduced by two years, according to updated Bureau of Prisons' records. Holmes, currently identified as federal inmate 24965-111 on the website, is now scheduled for release on December 29, 2032.
This adjustment shortens her initial 11-year and three-month sentence in the minimum-security, women-only Texas prison. The specific reasons for the reduction were not revealed by the bureau's spokesperson.
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Why has Elizabeth Holmes' jail term been reduced?
“For privacy, safety and security reasons, our office does not comment on the conditions of confinement for any inmate, including release planning or release plans,” the spox told the New York Post on Monday, July 10. However, the federal agency claimed that projected release dates can be subject to change based on various factors, such as an inmate's good conduct, participation in substance abuse programs or credits earned for completing productive activities.
Holmes was convicted on four counts of wire fraud, as she deceived doctors and patients into using her company's blood-testing services despite knowing that Theranos was incapable of providing accurate results. Additionally, she was accused of defrauding investors of over $700M with fabricated claims. In a separate trial, Holmes, along with her former lover and former Theranos COO Ramesh "Sunny" Balwani, was ordered to pay $452M in restitution to defrauded investors. Notably, media mogul Rupert Murdoch, who invested in Theranos, is owed $175M.
The remaining funds will be distributed among 13 other victims, including $40M to Walgreens and $14.5M to Safeway. Although Holmes is jointly liable for the lump sum, her lawyers expressed concerns about her "limited financial resources" that may hinder her ability to make the monthly restitution payments. US District Judge Edward Davila, who oversaw the trials of both Holmes and Balwani, amended her court filing regarding the payment schedule for restitution.
Elizabeth Holmes granted reprieve on restitution payments
The judge specified that Holmes will not be required to make monthly payments until she completes her nine-year prison sentence. Notably, prior to the downfall of Theranos, Holmes' net worth was said to be $4.5B by Forbes. However, her net worth has since plummeted to zero. Since her arrival at Federal Prison Camp Bryan, she was seen in khaki sweatpants and a brown T-shirt, having emotional reunions with her family, often in tears.
Sources reportedly stated that Holmes was “visibly shaken” and “crying during much of the visit” after having spent her early days at FPC Bryan in isolation. Prison life at FPC Bryan includes a tight schedule, with wake-up calls at 6 am for various duties and jobs that pay inmates between 12 cents and $1.15 an hour. Lynn Espejo, who spent nearly two years at the prison, alleged that male guards would check on female inmates in the showers and claimed that some were “having sex with women inmates." “You’re in the shower and the guard [could] come in there to see what you’re up to,” said Espejo.