UK markets open in 4 hours 50 minutes
  • NIKKEI 225

    27,480.49
    -205.91 (-0.74%)
     
  • HANG SENG

    19,275.50
    +460.68 (+2.45%)
     
  • CRUDE OIL

    72.65
    +0.64 (+0.89%)
     
  • GOLD FUTURES

    1,793.50
    -4.50 (-0.25%)
     
  • DOW

    33,597.92
    +1.58 (+0.00%)
     
  • BTC-GBP

    13,826.71
    -228.09 (-1.62%)
     
  • CMC Crypto 200

    395.72
    -6.32 (-1.57%)
     
  • ^IXIC

    10,958.55
    -56.34 (-0.51%)
     
  • ^FTAS

    4,093.68
    -20.80 (-0.51%)
     

Elizabeth Holmes sentenced to 11 years in prison for Theranos fraud

Fallen US biotech star Elizabeth Holmes was sentenced Friday to just over 11 years in prison for defrauding investors with her Silicon Valley start-up firm Theranos.

Holmes, who is pregnant, will not have to surrender herself until April next year, ordered US District Judge Edward Davila in a courtroom in San Jose, California.

The Theranos founder was convicted on four counts in January for persuading investors over 15 years that she had developed a revolutionary medical device before the company flamed out after an investigation by The Wall Street Journal.

The case became an indictment of Silicon Valley, and US federal prosecutors had sought a 15-year jail term for Holmes. She was sentenced to 135 months.

Moments before her sentencing, a tearful Holmes told the court: "I stand before you taking responsibility for Theranos. I loved Theranos. It was my life's work.

"I am devastated by my failings. Every day for the past years I have felt deep pain for what people went through because I failed them."

But US attorney Stephanie Hinds in a court filing argued that Holmes was "blinded by... ambition."

Holmes became a star of Silicon Valley when she said her now defunct start-up was perfecting an easy-to-use test kit that could carry out a wide range of medical diagnostics with just a few drops of blood.

At the time, Holmes often dressed soberly in black turtlenecks that evoked her hero, the late Apple icon Steve Jobs.

She sold investors on the idea that her invention would disrupt medical practice, replacing expensive lab tests with her cheap kits.

Her claims helped Theranos raise nearly one billion dollars without ever achieving meaningful revenue.

Holmes's meteoric rise and fast demise has been the subject of books, movies and a TV series that framed her story as a cautionary tale on the excesses of the tech industry that blindly followed a charismatic founder.

At one point, the Theranos board included former US defense secretary James Mattis and former US Secretaries of State, Henry Kissinger and the late George Shultz.

- 'Amazing things' -

Holmes was sentenced Friday by the same judge who presided over her long trial in a US court in the Silicon Valley city of San Jose.

Her partner, Billy Evans, who is the father of her 15-month-old son, and her mother, Noel Holmes, hugged her after she was handed her prison sentence.

Holmes's lawyer indicated she will appeal her conviction.

Lawyers for Holmes, 38, had asked for leniency, presenting her as a devoted friend who cares for a young child and has a second child on the way.

This was backed up by 140 letters of support filed to the court, including from her family, friends and a US senator.

"I am confident that on the other side of this, Elizabeth will do amazing things for society with her talents and boundless passion for changing the world for the better," said one letter.

That was in sharp contrast to descriptions given at her trial that painted her as an ambitious con artist who harassed her workers.

In a letter, Holmes's aunt, who was an early investor in Theranos, called on the court to give her a tough sentence, The Wall Street Journal reported.

Prosecutors want Holmes to pay $800 million in restitution to investors that included the Walton family of Walmart, the Walgreens chain of pharmacies and media mogul Rupert Murdoch.

A restitution hearing will be scheduled, although Holmes says she has no money to pay.

str-juj-amz/sw