Disgraced “Theranos” Fraudster Faces Sentencing

There is no question Elizabeth Holmes will serve time in federal detention, it’s a matter of how long and where.

That’s according to experts who say the disgraced Theranos founder can expect a lengthy term behind bars at her sentencing hearing Friday.

Former Theranos CEO Elizabeth Holmes arrives in federal court in San Jose, California, on Oct. 17, 2022. (Justin Sullivan/Getty Images / Getty Images)

Holmes faces up to 20 years in prison after being convicted on three felony counts of wire fraud and one felony count of conspiracy to commit fraud. Her attorneys are asking that she serve no more than 18 months if she is incarcerated at all, arguing that the high-profile case has ruined the former Silicon Valley darling’s reputation, saying she poses no threat to the public and noting that she has no prior criminal history.

Prosecutors are asking that Holmes serve 15 years in prison for duping investors out of hundreds of millions of dollars.

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Larry Levine, a former federal inmate who now runs Wall Street Prison Consultants, says Holmes would be lucky to get 15 years and not more, considering the dollar amount involved alone. He said there are a number of enhancements Holmes could receive under federal sentencing guidelines, too, given that her crimes were sophisticated, involving multiple conspirators and multiple victims.

FOX Business asked Levine about the prospect of Holmes receiving a lenient sentence.

“You’ve got a better chance of Jesus coming back in front of you right now and being knighted by the king than her getting 18 months,” Levine suggested. 

The Victorville, California, complex has a men’s penitentiary, two medium-security men’s prisons and a minimum-security camp for female inmates. (Federal Bureau of Prisons)

Holly Coulman, who with Levine leads Pink Lady Prison Consultants, which is focused on helping female inmates entering federal prison, agrees that Holmes has a near-zero chance of receiving an 18-month sentence. But she believes there is a possibility of Holmes receiving less than 10 years behind bars.

If that is the case, Holmes would likely avoid a high-security prison. But the Bureau of Prisons (BOP) determines where defendants are incarcerated, not the judge, and it tends to try to place inmates within 500 miles of their families.

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Given that Holmes lives in California, Coulman said the former executive could end up in Victorville, located outside Los Angeles. The complex has a men’s penitentiary and two medium-security men’s prisons, but it also has a minimum-security camp for women where Coulman served 13 months following a white-collar conviction involving around $950,000.

Holmes could end up in a camp where she would have more freedom, possibly FCI Dublin in northern California, where actresses Lori Loughlin and Felicity Huffman served sentences for involvement in the “Operation Varsity Blues” college admissions scandal.

FCI Dublin is a low-security federal correctional facility with an adjacent security satellite camp in northern California. (Federal Bureau of Prisons)

Another factor at play regarding how and where Holmes may serve time involves whether she is pregnant, as several reports speculate. All the experts FOX Business spoke with said the fact that Holmes has a young child and another possibly on the way will not impact the judge’s decision in sentence length, but it could influence where she is locked up.

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“They don’t care if she could be pregnant or has a small child,” said Lynn Espejo, who served time in federal prison following a white-collar conviction and is an advocate for criminal justice reform.

If Holmes were to enter prison while pregnant, there is a chance she could qualify for the BOP’s Mothers and Infants Together (MINT) program, allowing inmates who give birth during their sentence to stay at a residential reentry center.

There, she would remain with her newborn for up to three months before the child is placed in the custody of a loved one and she is sent back to a prison to serve out the remainder of her time.

Jail inmates receive prenatal classes in Fort Worth, Texas, on Jan. 27, 2016. (Joyce Marshall/Fort Worth Star-Telegram/Tribune News Service via Getty Images / Getty Images)

But there are no MINT facilities in California. There are MINT locations in Phoenix, Arizona; Tallahassee, Florida; Springfield, Illinois; Forth Worth, Texas; and Hillsboro, West Virginia.

There is also a possibility Holmes could be sent to a higher-security facility. Coulman says the judge will likely want to make an example of her to deter others — particularly from Silicon Valley — from launching startups and trying to trick investors.

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Regardless of where Holmes ends up serving her sentence, Coulman said, “None of them are fun.”

FOX Business’ Bradford Betz and Louis Casiano contributed to this report.

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