Last month, he surrendered at the prison camp in Bryan, Texas
Jailed Theranos CEO Elizabeth Holmes claims she won’t be able to afford the $250 a month restitution payments to victims of her fraud after she is released from prison. Luck informed of. Notably, Ms Holmes is jointly liable for the amount with her ex-boyfriend and former Theranos COO Sunny Balwani, who is serving a sentence of almost 13 years for his role in the fraud.
According to BBC, The entrepreneur was sentenced to more than 11 years in prison and also ordered to pay back $452 million – $250 a month – for defrauding dozens of high-profile investors along with his former business partner Ramesh Sunny Balwani .
Justice Department lawyers proposed last week that Ms. Holmes pay $250 a month, or at least 10% of her income, after she is released from prison. Meanwhile, Mr. Balwani must pay $1,000 a month once he is out.
However, lawyers for the disgraced entrepreneur objected to the decision, citing Ms Holmes’ “limited financial resources”.
They wrote in Monday’s filing, “Mr. Balwani’s amended judgment does not say anything about what the Court seeks for Ms. Holmes’ restitution schedule. Ms. Holmes and Mr. Balwani have different financial resources and the Court treated them fairly.” Per cbs news,
Ahead of his surrender, he told the new York Times That she cannot pay for her legal expenses, and that I will have to work for the rest of my life to pay for it. She has also claimed in court filings that she has “no assets” and no hopes of restarting her career following the Theranos scandal.
Experts say that the victims will never get full compensation.
last month, he surrendered at the prison camp in Bryan, Texas, An all-female facility to begin her sentence of 11 years and three months.
Theranos founder was indicted in January 2022 on four counts of persuading investors for more than 15 years that he had developed a revolutionary medical device, before the company came under fire after an investigation. Wall Street Journal. The company also attracted investment from high-profile moguls including Rupert Murdoch, the Walton family and former Education Secretary Betsy DeVos.
Prosecutors said he lied to investors from 2010 to 2015 because his company’s machines were not performing as promised. Theranos eventually dissolved in September 2018. He has been asked to repay Rupert Murdoch the full $125m he invested in his failed start-up.
Ms Holmes founded Theranos in 2003 after dropping out of Stanford University at the age of 19. She was named the world’s youngest self-made billionaire at age 30 after Theranos was valued at $9 billion. By 2023, this figure has dropped to $0.