Elizabeth Holmes loses final bid to delay imprisonment
Theranos founder Elizabeth Holmes on Tuesday afternoon lost her final bid to stay out of prison while she appeals her fraud conviction and sentence.
The U.S. Court of Appeals for the Ninth Circuit in a one-page ruling denied Holmes’ attempt to overturn her trial judge’s decision on her incarceration date.
Late last month, two days before she was to surrender herself for imprisonment, Holmes asked the appeals court to reverse U.S. District Court Judge Edward Davila’s order that she surrender herself for imprisonment April 27, arguing that Davila made “numerous, inexplicable errors” when he denied her attempt in district court to delay her incarceration.
That request bought her some extra time, but the Ninth Circuit, which is hearing her appeal, said in its ruling Tuesday denying her motion to stay free on appeal that Holmes had failed to show that her appeal of her conviction and sentence raises a substantial question of law or fact. It remains unclear when she must begin serving her sentence of more than 11 years.
Holmes was convicted by a jury in U.S. District Court in San Jose in January 2022 after a four-month trial of defrauding investors in her now-defunct Palo Alto blood-testing startup out of more than $144 million. In November, Davila sentenced her to prison but allowed a pregnant Holmes to defer incarceration until April 27 in a decision legal experts said was likely to allow her to give birth to her second child.
However, Holmes in December, shortly after notifying the court she would appeal her conviction and sentence, asked Davila to let her remain free until the appeal is finished, which could take a year or more. Davila in April shot down that attempt at deferred imprisonment, but Holmes in asking the Ninth Circuit to overturn Davila’s decision succeeded in delaying her incarceration under the appeals court’s rules.
Davila will order a new surrender date. He has recommended that Holmes serve her time at a minimum-security prison camp 100 miles from Houston, a city where Holmes spent years of her childhood, but the U.S. Bureau of Prisons has the final say on the location of her incarceration. Under federal law, Holmes must serve at least 9.5 years of her sentence.
A Stanford University dropout who founded Theranos in 2003, Holmes has been free on bail since she was charged by federal authorities with fraud in 2018. Jurors in her trial heard she made false statements about her company and its purported ability to conduct a full range of tests using just a few drops of blood from a finger-stick. The trial generated world-wide media coverage, with evidence revealing Theranos’ technology fell far short of Holmes’ claims, and that she engaged in substantial deceptions about its capabilities and uses, and about her company’s financial state.
The jury convicted Holmes on four counts of defrauding investors, but not on the charges related to blood-testing patients.
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