Elizabeth Holmes, the founder of Theranos, is scheduled to go to federal jail this week after numerous attempts to postpone her time in prison were unsuccessful.
Together with her former business partner Sunny Balwani, the disgraced businesswoman was sentenced to more than 11 years in prison and ordered to pay $452 million to the dozens of prominent investors they deceived through a blood-testing start-up.
For the former millionaire, who has stated that she does not even have enough money to pay her attorneys, it is a sizable bill.
Convicted offenders may occasionally be required to make restitution in US federal court. This is a payment made to victims to cover lost wages, property damage, medical expenditures, and other costs associated with the crime. In Holmes’ instance, she has been mandated to reimburse some of the richest American families.
After leaving Stanford University, she enlisted the help of a number of well-known people to raise money for Theranos, which peaked at a $9 billion valuation.
Henry Kissinger, a former secretary of state, and the Walton family, who established Walmart in the United States, were among the donors.
According to court records, former education secretary Betsy DeVos allegedly granted Holmes $100 million, despite the fact that the creator of Theranos being required to repay media magnate Rupert Murdoch for $125 million.
According to experts, she won’t be able to just file for bankruptcy and pay off her obligations that way. However, victims of her misdeeds shouldn’t hold out hope for a financial recovery.
They claim that since restitution in the US has mostly become symbolic, Holmes’ investors and many other less fortunate fraud victims are unlikely to receive the majority of the money they are promised.