Prosecutors Say Elizabeth Holmes Should Be Behind Bars Instead of at Grandiose Estate

In court documents, prosecutors say the disgraced Theranos founder should go to prison instead of live at an expensive estate while she appeals her conviction.

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Prosecutors want Elizabeth Holmes to reside in prison
Photo: Justin Sullivan (Getty Images)

Prosecutors are demanding disgraced Theranos founder Elizabeth Holmes reside in prison instead of an expensive estate while she appeals her prison sentence. Holmes was sentenced to 11 years and three months in prison last year for fraud related to her blood-test startup company.

Holmes has argued that she should be permitted to reside at the estate because she is not a flight risk and court documents say she’s even asking to loosen the restrictions placed on her region of travel “based upon vague references to her partner’s work commitments.”

However, prosecutors say Holmes should remain behind bars unless otherwise acquitted in a new trial. In a court filing on Thursday, prosecutors said “the time has come” for Holmes to serve her sentence, adding, “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.”

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The court document said it is now time for Holmes to “answer for her crimes committed nearly a decade ago” and “begin serving the term of imprisonment imposed by this Court.”

Holmes currently resides with her partner and their two children. Her partner reportedly pays their monthly bills but listed his salary as $0, according to the court documents. Holmes requested the court to lift her travel restrictions, allowing her to travel outside of the Northern District of California because of her partner’s alleged lack of employment.

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Prosecutors claim that her residence’s geographic location and her financial well-being puts her in a good position to flee the country and said Holmes’ request comes at a time “when her incentive to flee has never been higher.” Prosecutors argued further that Holmes should be moved to prison, citing that she “has both the means and the motive to flee.”

Holmes was accused of deceiving both patients and investors about the company’s blood-testing capabilities and the long-term financial outlook. She was found guilty in January 2022 of wire fraud and conspiracy for defrauding Theranos investors, but she managed to avoid the charges of defrauding Theranos patients.

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Theranos Inc. was valued at $9 billion before its downfall, and prosecutors argue she has a “lack of remorse” for her crimes, saying Holmes has “indicated a willingness to continue operating in similar fields in the future.”

Holmes’ past and current actions have not demonstrated that she can be trusted to remind at her residence, court documents said, adding that she has not provided enough evidence to prove that “she does not present a danger to the community.”

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Holmes is expected to report to prison on April 27, 2023.