As ‘The Dropout’ gains traction and popularity among streaming audiences, the real college dropout, and Queen of Silicon Valley, has been sentenced for her participation in the Theranos company fraud. Elizabeth Holmes has officially been sentenced for several counts of fraud and conspiracy, but her story is not over yet. Read our blog to find out how she was sentenced and what lies ahead.
The Story
Elizabeth Homes is famous for a different reason these days, but in the early 2000s and 2010s she was a tech darling, the Queen of Silicon Valley, and one of the youngest female tech industry entrepreneurs the world had ever seen.
Dreams
During her time as a college student, Holmes found regular studies to be less than stimulating and decided to investigate other pursuits. It was during this time of transition that she produced the idea to start a blood testing company that would revolutionize medical science for decades to come.
Her dream took shape, and within a few years became Theranos, a research and development company dedicated to providing patients and doctors with rapid blood testing that works with a single sample. For many patients, this would reduce the amount of blood samples necessary for testing and reduce medical costs and doctor’s visits. Practitioners would potentially be able to have accurate, granular test results within minutes.
The A Team
Holmes teamed up with Sunny Balwani, an experienced businessman and charismatic figure to grow her idea into a multi-billion-dollar company. The two teamed up in business and in life and quickly became major players in the tech world.
As Theranos grew, so did interest from investors and the need for their funds. Balwani and Holmes needed vast amounts of capitol to grow their company and protect their IP – a herculean task that became impossible. Towards the end of Theranos, it became clear that the wheels were falling off the wagon and Holmes was the one people blamed. Employees began to leak information about how the company was using their competitor’s machines to perform tests to create false results and progress reports for investors.
It All Falls Apart
Homes and Balwani’s relationship also began to deteriorate, and it was evident that one may have had more power over the other. Holmes was distraught thinking about how to navigate the mess she and her partner had made of Theranos, but it was too late to come clean. As a result, law enforcement investigated the partners and discovered a years long fraud campaign that affected nearly every investor.
Theranos was dropped from all sponsorships and investors ended their professional relationships with the company in fear of further exploitation. After many long years, Elizabeth Holmes’ trial has come to an end, and she’s been sentenced.
Two Months and 20 Years
Holmes’ trial has taken over two months but has finally come to a close. She was found guilty of defrauding investors and conspiracy to commit wire fraud. She faces up to 20 years in prison and fines of up to $250,000. She will attend her final sentencing in September 2022.
Now a mother, Holmes has more to worry about than her reputation and company. She was seen leaving the courthouse soberly hand-in-hand with her romantic partner, Billy Evans, and her parents. At this point, it is unlikely that Holmes will be able to avoid prison time, but it is difficult to say where she will go in the end.
Because wire fraud is a federal crime, Holmes would be incarcerated in a federal facility. Additionally, she would not be subject to state specific sentencing guidelines. Holmes has a way to go yet, but now the spotlight is over Balwani, who begins trial this month. Elizabeth Holmes’ verdict and sentencing does not bode well for Balwani, and many are skeptical that he will leave the trial unscathed. However, it is impossible to predict the future for Sunny.
The Draskovich Law Group will continue to follow this case as it develops.