Ex-Theranos CEO Elizabeth Holmes Granted Early Release from Prison

According to online records, Elizabeth Holmes, the biotechnology entrepreneur and ex-CEO of Theranos, who was sentenced to 11 years and three months for fraud in November 2022, will get out of prison two years early. 

Holmes, 39, was the founder and CEO of Theranos, a failed Silicon Valley startup that claimed to have invented a revolutionary blood testing device that only required a drop of blood. She was convicted in January 2022 on four felony counts of defrauding investors of more than $120 million. The total losses from her scheme exceeded $800 million, prosecutors said.

Holmes reported to a minimum-security, federal women’s prison camp in Bryan, Texas, on May 30. On Tuesday, July 11, Federal Bureau of Prisons records showed that her sentence was reduced to nine years and her release date was set for December 23, 2032.

A spokesperson for the federal agency confirmed the reduction to USA TODAY on Tuesday but did not provide any details about the reason for Holmes’ early release, citing “privacy, safety, and security reasons.

The Bureau of Prisons said in a statement that some inmates are eligible for early release through court orders such as compassionate release or clemency. Others can earn time off for good conduct, such as completing job assignments and substance abuse programs. However, the agency also said earned time could be revoked for disciplinary issues or other violations.

Holmes dropped out of Stanford University at 19 to start Theranos in 2003. The company attracted investors such as Oracle founder Larry Ellison, media mogul Rupert Murdoch, and the Walton family of Walmart fame. It also claimed to have partnerships with the Department of  Defense and Walgreens.

However, Holmes and her former colleague and lover Ramesh “Sunny” Balwani lied about the technology, the finances, and the partnerships of Theranos, according to indictments. Balwani was also convicted on 12 counts of fraud and conspiracy and sentenced to about 13 years in prison.

Credits: Wiki