In 2018, the Securities and Exchange Commission released a statement alleging that Theranos and its founders had raised upwards of $700 million using what the agency claimed was “an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance.” Prior to her downfall, Holmes had a net worth of around $4.5 billion.
The company had also fraudulently claimed that it had the blessing of not only the United States military but several large healthcare and pharmaceutical companies, according to the SEC’s statement in 2018. Making claims like that without any basis in reality to hype up investors and keep the cash flowing in is what legal experts and lawmakers may call “very illegal.”
As SlashGear reported in November, the courts found that the guilty party should be responsible for paying back $121 million in restitution in addition to the 11-year jail sentence. As with any conviction in the United States, this comes with an inevitable appeal by Holmes, meaning that this case is far from over even as she gets ready for a stay in federal prison. Holmes had previously asked the court to delay the start of her sentence while the appeal process was underway, but was denied the request.
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