The former star Silicon Valley’s Elizabeth Holmes was sentenced to more than 11 years in prison for defrauding the management of her startup, Theranos, which promised to revolutionize health diagnostics.
According to the sentence issued against Holmes, she will have until April 27 to start the sentence.
Four months after a much publicized trial in a San Jose courthouse, in California, Holmes pleaded guilty in January to lying to investors about her company’s true progress.
Holmes, who was once hailed as the “successor to Steve Jobs”, was the world’s youngest self-made billionaire, but the technology promoted by Holmes has not succeeded and is bogged down in cause legal proceedings and the company was dissolved by 2018 .
The prosecutor had asked for 15 years in prison and demanded $800 million be returned to his victims, while the defense asked for a prison sentence of up to one and a half years.
The judge found Friday that it had already caused $121 million in losses to investors, including Rupert Murdoch, the family that owns Walmart and the CEO of Wells Fargo. The amount you will have to pay will be determined in a subsequent hearing.
Holmes has also been accused of giving a grossly exaggerated picture of the performance of the company to its lenders.
Holmes created Theranos Medical Diagnostics in 2003, when he was still 19, promoting devices he considered revolutionary and capable, he said, of performing up to 200 test doctors with a few drops of blood in faster and more cost-effective than traditional medical laboratories.
But after years of false advertising and billions of dollars in hiring in subsequently, these promises have not borne fruit and the promised devices have not seen the light of day.
In 2015, the scandal erupted when the Wall Street Journal revealed that the device promised by the company did not work as it should.
The company Holmes founded was valued at nearly $10 billion at its peak. Prosecutors said during Holmes’ trial in California who knowingly misled doctors and patients about Theranos’ flagship product, the Edison machine, which the company says could detect cancer, diabetes and other conditions using a few microscope drops of blood.
Read More About: Business News