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Another start-up founder is going to prison for overstating his company’s performance to investors. His misrepresentations allowed him to raise $117 million in funding from top investment firms, valuing his start-up at $1.1 billion. When HeadSpin’s board members found out about the behavior in 2020, they pushed Mr. Lachwani to resign and slashed the company’s valuation by two-thirds. Mr. Lachwani is at least the fourth start-up founder in recent years to face serious consequences after taking Silicon Valley’s culture of hype too far. Other founders currently in prison for fraud include Sam Bankman-Fried of the cryptocurrency exchange FTX and Elizabeth Holmes and Ramesh Balwani of the blood testing start-up Theranos.
Persons: Manish Lachwani, Lachwani, Sam Bankman, Elizabeth Holmes, Ramesh Balwani
New York CNN —A federal judge on Thursday ordered Sam Bankman-Fried to repay more than $11 billion as part of his sentence for defrauding customers and investors in his failed crypto exchange FTX. In their sentencing memorandum earlier this month, federal prosecutors laid out their reasoning for seeking $11 billion in forfeiture. Unlike restitution, where the money from seized assets goes directly to victims, the money from forfeiture is taken by the government and absorbed into the US Treasury. It is unclear how much Bankman-Fried is currently worth, but it’s likely not anywhere near $11 billion. So far, the Department of Justice has redistributed about $4 billion to Madoff’s victims.
Persons: Sam Bankman, Fried, SBF, ” Mitchell Epner, , , District Judge Lewis Kaplan, Anthony Capozzolo, Elizabeth Holmes, Holmes, Ramesh “ Sunny ” Balwani, Bernard Madoff, Peter Katz, Katz, they’ll, ” Katz Organizations: New, New York CNN, CNN, Treasury, District, , of, Department of Justice’s, Department of Justice, Department Locations: New York, Eastern, of New York
Meghan BobrowskyMeghan Bobrowsky is a technology reporter in The Wall Street Journal’s San Francisco bureau. She covers breaking news across the tech industry and explores emerging trends affecting digital consumption, including around social media, the metaverse and virtual reality. She also writes about disruptions in the digital advertising industry that have impacted companies such as Snap and Meta. Meghan previously held roles at the Miami Herald, the Philadelphia Inquirer, the San Francisco Chronicle and the Sacramento Bee. Meghan is from Davis, Calif., and graduated with a degree in politics from Scripps College, part of the Claremont Colleges Consortium.
Persons: Meghan Bobrowsky Meghan Bobrowsky, Meghan, Elon Musk’s, Meta’s, Elizabeth Holmes, Sunny Balwani Organizations: San, Elon, Twitter, Miami Herald, Philadelphia Inquirer, San Francisco Chronicle, Sacramento Bee, Calif, Scripps College, Claremont Colleges Consortium Locations: San Francisco, Covid, Davis
A federal court ordered Elizabeth Holmes and Sunny Balwani to pay $452 million. Defendants hit with such orders to pay victims may see it come out of any eventual wages they earn. So how will Holmes and her former business partner Sunny Balwani navigate a $452 million restitution order? Former Theranos CEO Elizabeth Holmes arrives at federal court with her partner Billy Evans on November 18, 2022. According to the restitution order, Holmes and Balwani are responsible for $125 million in restitution to Murdoch, $40 million to Walgreens, and $14.5 million to Safeway.
Persons: Elizabeth Holmes, Sunny Balwani, Rupert Murdoch, Holmes, Daniel Richman, Evan Gotlob, Saul Ewing, Billy Evans, Justin Sullivan, Justice Department's, It's, Balwani, Insider's, Murdoch, Gotlob, There's Organizations: Morning, News Corp, Walgreens, Safeway, Forbes, Federal, Office, Columbia Law School, Justice, US, Prosecutors Locations: California, Arizona, Manhattan, Boston, Northern California
The Bureau of Prisons now lists Elizabeth Holmes' release date as December 29, 2032. Holmes was convicted of fraud and conspiracy last year and sentenced to 11.25 years in prison. Holmes was originally sentenced to 11.25 years in prison, and reported to a minimum-security women's prison in Bryan, Texas, on May 30, 2023. According to her listed release date, Holmes will spend nine years, six months, and 29 days in prison. The Bureau of Prisons did not immediately respond to Insider's request for comment on how Holmes' release date was calculated.
Persons: Elizabeth Holmes, Holmes, Ramesh, Sunny, Balwani Organizations: of Prisons, Prisons Locations: Bryan , Texas, Theranos
Lawyers for the disgraced entrepreneur Elizabeth Holmes said this week that she would be unable to afford to pay $250 each month to victims of her failed-blood testing start-up, Theranos, after leaving prison. Ms. Holmes, 39, began an 11-year, three-month prison sentence in Texas in May after she was found guilty last year of four counts of wire fraud and conspiracy for defrauding investors about her company’s technology and business dealings. Last month, a federal judge in California ordered Ms. Holmes and her former business partner, Ramesh Balwani, to pay $452 million in restitution to investors who were defrauded, including the media mogul Rupert Murdoch. Federal prosecutors asked the U.S. District Court for the Northern District of California last week to correct “clerical errors” in court records. One of the suggested corrections would require Ms. Holmes, as part of her restitution, to pay either $250 or at least 10 percent of her earnings, whichever is greater, each month after she is released from prison.
Persons: Elizabeth Holmes, Holmes, Ramesh Balwani, Rupert Murdoch Organizations: U.S, Northern, Northern District of Locations: Texas, California, Northern District, Northern District of California
Along with Ramesh "Sunny" Balwani, Holmes was ordered to pay $452,047,268 in restitution. Elizabeth Holmes won't be able to afford $250 a month restitution payments when she's released from a Texas prison, her attorneys argued. It's common for funds like these to never fully be paid out, experts previously told Insider. This week, prosecutors proposed that Holmes pay it month-by-month upon her release, in $250 increments, Bloomberg reported. According to the original restitution order, Holmes and Balwani will have to pay $40 million to Walgreens, and $14.5 million to Safeway.
Persons: Elizabeth Holmes, Ramesh, Sunny, Balwani, Holmes, she's, Daniel Richman, wasn't, Rupert Murdoch Organizations: Prosecutors, Columbia Law School, Bloomberg, New York Times, Walgreens, Safeway Locations: Texas, Manhattan
CNN —Elizabeth Holmes, the disgraced former Theranos CEO, has “limited financial means” and should not be forced to pay $250 a month to victims of her crimes after she is released from prison, her lawyers argued in a court filing on Monday. The move from Holmes’ attorneys comes after federal prosecutors said in a separate filing last week that “clerical errors” had resulted in no payment schedule being set for Holmes’ restitution after she is released from prison. Holmes and former Theranos COO Ramesh “Sunny” Balwani were previously ordered to pay $452 million in restitution to victims of their crimes. Holmes reported to prison late last month in Texas to serve out her more than 11-year sentence. As part of the original restitution order, some $125 million is owed to media mogul Rupert Murdoch, as well as millions in payments to other Theranos investors.
Persons: Elizabeth Holmes, Holmes, , Ramesh “ Sunny ” Balwani, Theranos, Rupert Murdoch Organizations: CNN, Federal Locations: Texas, Bryan , Texas
Just five days after she went to prison, Elizabeth Holmes had an emotional reunion with her family. She met with her husband and parents on a prison visiting day in Texas. Just five days after she reported to prison, Elizabeth Holmes shared an emotional reunion with her husband and parents. In pictures by Splash News, obtained by The Daily Mail, Holmes was seen with her parents and husband, Billy Evans, during a visiting day on Saturday. Holmes reported to prison on May 30 after a court denied her request to remain out of prison while appealing her conviction.
Persons: Elizabeth Holmes, Holmes, Billy Evans, pinky, Ramesh, Sunny Organizations: Splash News, The Daily Mail, Daily Mail, Daily Locations: Texas, Bryan , Texas
Former Theranos exec Ramesh "Sunny" Balwani has had around two years shaved off of his federal prison sentence. He reported to prison in April for a nearly 13-year sentence, but his new release date is in 2034. Ramesh "Sunny" Balwani, Elizabeth Holmes' ex-boyfriend and the number 2 in charge at failed blood testing startup Theranos, has had some time shaved off of his nearly 13-year sentence for fraud and conspiracy, Insider has learned. But federal prison officials have reduced Balwani's sentence. In April, Balwani reported to prison at Terminal Island FCI, a minimum security federal facility just outside of Los Angeles.
Persons: Ramesh, Sunny, Balwani, Elizabeth Holmes, Theranos, Holmes, Rupert Murdoch, Insider's Sarah Jackson, Stephen Cazares Organizations: US Bureau of Prisons Locations: Los Angeles
Elizabeth Holmes reported to prison on May 30, 2023, after being convicted of fraud and conspiracy. Before her sentence began, Holmes maintained a vegan diet and regularly drank green juices. Her prison camp in Texas serves foods like hot dogs, tacos, hamburgers, and macaroni. A vocal proponent of green juice, disgraced Theranos founder Elizabeth Holmes will have to get used to some changes to her usual diet during her 11-year prison sentence. Other changes to her daily life will include limited access to technology and daily headcounts, Insider previously reported.
Persons: Elizabeth Holmes, Holmes, John Carreyrou, Amanda Seyfried, Sunny Balwani, Fortune, MARK FELIX Organizations: Inc, Theranos, Federal, BBC, of Prisons Locations: Texas, Bryan , Texas
Disgraced former Theranos CEO Elizabeth Holmes was photographed for the first time in prison. Holmes was seen with her hair loose, bespectacled, and wearing drab khakis in the prison in Bryan, Texas. Former Theranos CEO Elizabeth Holmes has been photographed for the first time since she began her 11-year prison sentence. —New York Post (@nypost) June 3, 2023On May 30, Holmes reported to the Federal Prison Camp in Bryan, Texas, which is a minimum-security women's prison. Holmes' representative did not immediately respond to Insider's request for comment sent outside of regular business hours.
Persons: Elizabeth Holmes, Holmes, Ramesh, Sunny Organizations: Daily Mail, York, Federal Locations: Bryan , Texas,
A federal court ordered Elizabeth Holmes and Sunny Balwani to pay $452 million. Defendants hit with such orders to pay victims may see it come out of any eventual wages they earn. So how will Holmes and her former business partner Sunny Balwani navigate a $452 million restitution order? Former Theranos CEO Elizabeth Holmes arrives at federal court with her partner Billy Evans on November 18, 2022. According to the restitution order, Holmes and Balwani are responsible for $125 million in restitution to Murdoch, $40 million to Walgreens, and $14.5 million to Safeway.
Persons: Elizabeth Holmes, Sunny Balwani, Rupert Murdoch, Holmes, Daniel Richman, Evan Gotlob, Saul Ewing, Billy Evans, Justin Sullivan, Justice Department's, It's, Balwani, Insider's, Murdoch, Gotlob, There's Organizations: Morning, News Corp, Walgreens, Safeway, Forbes, Federal, Office, Columbia Law School, Justice, US, Prosecutors Locations: California, Arizona, Manhattan, Boston, Northern California
Elizabeth Holmes wanted an Apple flag flown at half-mast after Steve Jobs died, per "Bad Blood." Elizabeth Holmes ordered a specially made Apple flag to be flown at half-mast at Theranos' headquarters after Steve Jobs died, according to a book. According to "Bad Blood," they wanted to fly an Apple flag at half-mast in the grounds of the Theranos building in Palo Alto. A Theranos employee volunteered to try to find an Apple flag to buy but couldn't find one. According to "Bad Blood," Theranos employees could pinpoint which chapter of the book Holmes was up to based on the period of Jobs' career she appeared to be imitating.
Persons: Elizabeth Holmes, Steve Jobs, John Carreyrou's, couldn't, Holmes, who's, Sunny Balwani, Elizabeth, Sunny, Theranos, Walter Isaacson's, Jobs, Balwani, Rupert Murdoch, Balwani didn't Organizations: Apple, Wall Street, CNBC, Walgreens Locations: Palo Alto, Texas
Here are some who got burned by Theranos, from the Walton family to Rupert Murdoch. Rupert Murdoch invested $125 million in Theranos. Julio Cortez/APThe DeVos familyThe DeVos family, who are heirs to the Amway empire and includes former US Secretary of Education Betsy DeVos, poured $100 million into Theranos. Joshua Roberts/ReutersThe Cox familyTheranos also got $100 million from the Atlanta-based billionaire Cox family, which owns the media and automotive company Cox Enterprises. The Cox family was the eight-wealthiest in the US as of 2020, with a net worth of $34.5 billion at the time, according to Forbes.
Persons: Elizabeth Holmes, Theranos, Walton, Rupert Murdoch, Holmes, Ramesh, Sunny, Balwani, Forbes —, Murdoch, Julio Cortez, Betsy DeVos, they're, Joshua Roberts, Cox, Carlos Slim Carlos Slim, América, Andreas Dracopoulos, Stavros Niarchos, Robert Kraft, It's, Kraft, Tom Brady, Matt Slocum, Alan Eisenman Alan Eisenman, Eisenman Organizations: Morning, Wall Street, Walmart, Forbes, Rupert Murdoch Media, Street, Amway, Cox Enterprises, Stavros Niarchos Foundation, Robert Kraft New England Patriots, Bloomberg, New England Patriots, CBS Locations: Theranos, Atlanta, Latin America, Mexico, FTX
The reporters spoke with board members, who explained why they backed founder Elizabeth Holmes. Holmes' board going into the scandal included an unusual roster of names for a healthcare startup, with leaders who had more experience in politics and government than healthcare. For the most part, the board members seemed to be taken by Holmes and her vision. "Secretary Mattis was struck by the promise of technology and was looking for any technology solution to save lives on the battlefield," White said. Auletta in the documentary said the board members spoke about Holmes as if she were a visionary.
Persons: Theranos, Alex Gibney, Elizabeth Holmes, Holmes, John Carreyrou, Sunny Balwani, Balwani, George Shultz, Shultz, Gary Roughead, William Perry, Sam Nunn, James Mattis, Donald Trump's, Richard Kovacevich, Wells Fargo Henry Kissinger, William Frist, William H, Foege, Riley, Bechtel, Kissinger, Mattis, Ken Auletta, David Boies, Auletta, Axios, Dana White, White, Beethoven, Roger Parloff, he's, Parloff Organizations: Morning, Food and Drug Administration, Wall Street, US, US Marine Corps, Centers for Disease Control, Bechtel Group Inc, New, Mattis, Theranos, Securities and Exchange Commission, Fortune Locations: Texas, California, Silicon Valley
Amanda Seyfried, who played Elizabeth Holmes in "The Dropout," says Holmes' 11-year prison sentence is "fair." Holmes reported to a women's prison in Bryan, Texas, on Tuesday to start serving her sentence. Amanda Seyfried has weighed in on Elizabeth Holmes' prison sentence after portraying the disgraced Theranos founder in the Hulu miniseries "The Dropout." Seyfried appeared on "Good Morning America" on Tuesday, the day Holmes reported to a minimum-security women's prison in Bryan, Texas, to begin serving her 11-year sentence. But she added that she thought Holmes' sentence — 11.25 years in prison with three years of supervision following her release — was "fair."
Persons: Amanda Seyfried, Elizabeth Holmes, Holmes, Seyfried, sympathizes, William, Billy, Evans, , Naveen Andrews, Ramesh, Sunny, Balwani, Theranos, Elizabeth Organizations: Hulu, Globe, Los Angeles Times Locations: Bryan , Texas
Theranos founder Elizabeth Holmes arrives to begin serving her prison sentence for defrauding investors in the failed blood-testing startup, at the Federal Prison Camp in Bryan, Texas, May 30, 2023. Disgraced Theranos CEO Elizabeth Holmes reported to prison Tuesday to begin her more than 11-year sentence for defrauding investors about the capabilities of her company's blood-testing technology. The ruling followed a day after an appeals court rejected Holmes' bid to stay out of prison while she appeals her conviction. A federal jury in San Jose, California, convicted Holmes on four counts of defrauding investors in Theranos, the company she dropped out of Stanford University to found in 2003. Balwani was convicted on 12 counts of wire fraud and conspiracy to commit wire fraud.
Elizabeth Holmes set to report to prison
  + stars: | 2023-05-30 | by ( Catherine Thorbecke | ) edition.cnn.com   time to read: +3 min
CNN —Elizabeth Holmes is set to report to prison on Tuesday, capping off a stunning downfall for the disgraced founder of failed blood testing startup Theranos. Holmes was sentenced to more than 11 years in prison last November, after she was convicted months earlier on multiple charges of defrauding investors while running the now-defunct startup. Holmes was once an icon in the tech world, serving as a posterchild for the limitless ambitions and potential of Silicon Valley. Holmes and Balwani were first indicted together nearly five years ago on the same 12 criminal charges. This month, Davila ordered Holmes and Balwani to pay restitution of roughly $452 million to victims of their crimes.
In 2002, Elizabeth Holmes, then 18, met Sunny Balwani, then 37, in Beijing, China. Balwani became her long-term boyfriend and, later, the COO of her startup, Theranos. Holmes is set to report to prison Tuesday. Elizabeth Holmes and Ramesh "Sunny" Balwani engaged in a years-long workplace relationship that ended when he left their company, Theranos, in 2016. However, Holmes is expected to report to prison on Tuesday to finally begin her sentence.
Ms. Holmes has appealed her case, though her requests to remain out of prison during the appeal have been denied. Ms. Holmes founded Theranos in 2003 after dropping out of Stanford University at age 19. Ms. Holmes and Mr. Balwani were indicted that year. Mr. Balwani was convicted on 12 counts of fraud and is serving a nearly 13-year sentence in a federal prison in San Pedro, Calif. Since her conviction, Ms. Holmes has been living in a rental home in San Diego near the family of Billy Evans, who is the father of her two children.
Elizabeth Holmes reported to a Texas prison Tuesday to begin serving her sentence of more than 11 years. The Theranos founder was convicted on four counts of fraud and conspiracy last year. Eight years after infamous blood-testing startup Theranos began to implode, its founder, Elizabeth Holmes, is now in prison. On Tuesday afternoon, Holmes reported to a minimum-security women's prison in Bryan, Texas, about 100 miles from Houston, where she grew up, to begin serving her sentence of 11.25 years, with an additional three years of supervised release. Balwani reported to a California prison in April to begin his nearly 13-year sentence.
The LatestElizabeth Holmes, the disgraced founder of the failed blood testing start-up Theranos, who was convicted last year on charges that she defrauded investors of more than $100 million, has lost her latest bid to stay out of prison while she appeals her conviction. Ms. Holmes, whose case cast a harsh light on Silicon Valley’s culture of hubris, must report to prison on May 30, a judge ruled after the U.S. Court of Appeals for the Ninth Circuit rejected her attempt on Tuesday to remain free on bail. Ms. Holmes and her top lieutenant at Theranos, Ramesh Balwani, who was found guilty of fraud in a separate trial and who began serving his prison sentence last month, were also ordered to pay $452 million in restitution to victims of the company’s fraud. Of that total, the judge, Edward J. Davila of the U.S. District Court for the Northern District of California, who oversaw both trials, determined that Ms. Holmes and Mr. Balwani should pay $125 million to the media mogul Rupert Murdoch, who invested in Theranos. Walgreens and Safeway, which had entered into business deals with the company, were also identified as victims for the purposes of restitution.
[1/2] Theranos founder Elizabeth Holmes arrives at the federal courthouse accompanied by her partner Billy Evans, to ask a U.S. judge at a hearing to pause her prison sentence of more than 11 years while... Read moreCompanies Theranos Inc FollowMay 17 (Reuters) - Theranos founder Elizabeth Holmes will begin serving her prison sentence on May 30 for defrauding investors in the failed blood-testing startup once valued at $9 billion. U.S. District Judge Edward Davila set the date on Wednesday for Holmes, 39, to begin serving 11 years and three months in prison. Holmes rose to fame after claiming Theranos' small machines could run an array of diagnostic tests with just a few drops of blood. Prosecutors said during the trial that Holmes misrepresented Theranos' technology and finances. Holmes' co-defendant, former Theranos President Ramesh "Sunny" Balwani, was convicted of defrauding Theranos investors and patients at a separate trial and sentenced to 12 years and 11 months in prison.
Former Theranos CEO Elizabeth Holmes (C) arrives at federal court with her partner Billy Evans (R) and mother Noel Holmes on November 18, 2022 in San Jose, California. Elizabeth Holmes, the disgraced CEO of Theranos, must report to prison May 30, according to a ruling issued Wednesday by U.S. District Judge Edward Davila. On Tuesday, an appeals court rejected Holmes' bid to stay out of prison while she appeals her conviction. In another ruling Tuesday, Davila ordered that Holmes and former Theranos executive Ramesh "Sunny" Balwani pay $452 million in restitution to victims. Balwani was sentenced to nearly 13 years in prison in July, after being convicted of 12 counts of fraud, and began his sentence in April.
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