Elizabeth Holmes to be released from prison 2 years ahead of schedule.

Elizabeth Holmes’ Sentence for Defrauding Investors Appears to be Reduced

Convicted fraudster Elizabeth Holmes has seemingly had two years shaved off her 11-year prison sentence for defrauding investors with her failed blood-testing startup, Theranos.

Initially reporting to federal prison on May 30, Holmes’ inmate details on the Bureau of Prisons website now show her expected release date as December 29, 2032, according to NBC News reports. This revised release date takes into account good behavior and other factors that allow for early release.

Holmes, the founder and CEO of Theranos, is currently serving her sentence in a minimum-security prison in Texas. In addition to her prison time, she and her former boyfriend and Theranos President Ramesh “Sunny” Balwani were ordered to pay over $452 million in restitution.

In June, prosecutors suggested that Holmes contribute $250 per month towards her share of the restitution after her release from prison, as reported by Bloomberg here. Holmes’ legal team argued that this payment plan was a result of a clerical error, but prosecutors denied this claim.

Holmes’ attorneys stated that the judge took into consideration “substantial evidence showing Ms. Holmes’ limited financial resources and has appropriately treated Ms. Holmes and Mr. Balwani differently in sentencing.”

In a recent interview with The New York Times, Holmes expressed her struggle to pay her legal bills, saying, “I have to work for the rest of my life to try to pay for it.”

Unfortunately, it is unlikely that those affected by Holmes’ actions will ever receive their full restitution. Daniel Richman, a professor at Columbia Law School and former federal prosecutor, explained that “generally, most restitution is never paid.”

During the trial and while appealing her conviction, Holmes and her partner, hotel heir Billy Evans, embarked on a cross-country journey, living in an RV and even attending Burning Man, a festival known for its high ticket prices.

According to federal prosecutors, Holmes resided in a $13,000-per-month estate during this time. The luxurious mansion, worth $135 million, was situated on 74 acres in Woodside, California.

Evans, Holmes’ partner and the father of her two children, is the heir to the Evans Hotel Group and has an estimated net worth of $10 million.

Holmes claimed that her company could revolutionize blood testing by using a smaller amount of blood compared to traditional tests. She also attempted to accuse Balwani of abuse, but text messages between the two revealed a loving relationship, despite Balwani’s reputation for mistreating employees.

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