/ 21 November 2022

Notorious startup founder to be jailed

Image source: Getty
Image source: Getty

Ending a years-long saga that saw celebrated Silicon Valley startup founder Elizabeth Holmes sustain an almighty fall from grace, she was sentenced to 11 years and 3 months in prison for defrauding investors in her failed blood-testing company Theranos on Saturday. The 38yo raised almost US$1 billion from investors – including Rupert Murdoch and former military general/Secretary of Defence James Mattis – for the invention she said would revolutionise health diagnostics. She claimed hundreds of tests could be run from a few drops of blood – but the technology never worked. Calling the case “troubling on so many levels,” US ​​Judge Edward Davila said it may have been hubris or “intoxication with fame” that led to Holmes’ conduct. Holmes, who is pregnant with her second child, must report to prison in April next year after she’s given birth. Her former business partner/boyfriend Sunny Balwani was found guilty of fraud in a separate trial – he’s expected to be sentenced on 7 December.

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