Elizabeth Holmes living in $13,000-per-month estate, showing ‘no remorse’: feds
Disgraced Theranos founder Elizabeth Holmes is living a life of luxury in a $13,000-per-month estate while appealing her conviction on various fraud charges, the feds said in a court filing.
Prosecutors said Holmes, 38, “continues to show no remorse” for her actions at the doomed blood-testing startup after being sentenced to more than 11 years in prison last November. Holmes was convicted of defrauding investors by lying about Theranos’ technology.
A federal judge ordered Holmes, who is pregnant with her second child, to begin serving her sentence on April 27.
Attorneys for Holmes have argued that she should be allowed to remain free on bail during her appeal because it will raise “substantial issues” about her case that could lead to a new trial.
However, the feds said the “time has come” for Holmes to report to prison.
“There are not two systems of justice — one for the wealthy and one for the poor — there is one criminal justice system in this country,” government attorneys said in the filing, according to Bloomberg.
The property where Holmes has stayed since the trial requires roughly $13,000 in monthly upkeep alone, according to the filing.
Holmes lived on the grounds of a $135 million Silicon Valley estate throughout her trial, according to multiple reports in 2021. The 74-acre estate is located in Woodside, Calif., less than an hour away from the San Jose courthouse where the trial took place. It’s unclear if the estate is the same one referenced in the court filing.
Prosecutors said Holmes is attempting to ease restrictions on her movement by making “vague references” to her partner Billy Evans’ needs to travel for work. The feds argue that Holmes is a potential flight risk.
In January 2022, Holmes was found guilty of three counts of wire fraud and one count of conspiracy to commit fraud. The verdict marked the culmination of a stunning fall for Holmes, who once lured a slew of prominent investors and was identified by Forbes as the world’s youngest female billionaire.
Theranos and its $9 billion valuation collapsed after the Wall Street Journal revealed that the firm’s blood testing machine could not perform many of the functions that Holmes claimed. Jurors determined that Holmes had deliberately misled investors.
At her sentencing hearing last fall, Holmes claimed that she was “devastated” by her past actions.
“I have felt deep shame for what people went through because I failed them,” Holmes said.
Prior to her sentencing, a judge rejected a bid by Holmes’ team to secure a new trial.
In its request, Holmes’ team cited a remorseful visit that former Theranos lab director Adam Rosendorff made to her home after her conviction.
Rosendorff admitted to the visit but said he stood by his testimony against Holmes.