Elizabeth Holmes

For the writer, see Elizabeth Holmes (writer).

Elizabeth Holmes
Holmes in 2014
Born
Elizabeth Anne Holmes

(1984-02-03) February 3, 1984 (age 40)
Washington, D.C., U.S.
EducationStanford University (dropped out)
Years active2003–2018
Known for
Criminal statusIncarcerated
Children2
Relatives
Conviction(s)
  • Wire fraud (3 counts)
  • Conspiracy to commit wire fraud (1 count)
Criminal penalty11+1⁄4 years in prison[1]
Imprisoned atFederal Prison Camp, Bryan

Elizabeth Anne Holmes (born February 3, 1984) is an American biotechnology entrepreneur who was convicted of fraud in connection with her blood-testing company, Theranos.[2] The company's valuation soared after it claimed to have revolutionized blood testing by developing methods that needed only very small volumes of blood, such as from a fingerprick.[3][4] In 2015, Forbes had named Holmes the youngest and wealthiest self-made female billionaire in the United States on the basis of a $9-billion valuation of her company.[5] In the following year, as revelations of fraud about Theranos's claims began to surface, Forbes revised its estimate of Holmes's net worth to zero,[6] and Fortune named her in its feature article on "The World's 19 Most Disappointing Leaders".[7]

The decline of Theranos began in 2015, when a series of journalistic and regulatory investigations revealed doubts about the company's claims and whether Holmes had misled investors and the government. In 2018, the U.S. Securities and Exchange Commission (SEC) charged Theranos, Holmes, and former Theranos chief operating officer (COO) Ramesh "Sunny" Balwani with raising $700 million from investors through a fraud involving false or exaggerated claims about the accuracy of the company's blood-testing technology; Holmes settled the charges by paying a $500,000 fine, returning 18.9 million shares to the company, relinquishing her voting control of Theranos, and accepting a ten-year ban from serving as an officer or director of a public company.

In June 2018, a federal grand jury indicted Holmes and Balwani on fraud charges. Her trial in the case of U.S. v. Holmes, et al. ended in January 2022 when Holmes was convicted of defrauding investors, and acquitted of defrauding patients.[8] She was sentenced to serve 11+1⁄4 years at Federal Prison Camp, Bryan, beginning on May 30, 2023. She and Balwani were ordered to pay $452 million in restitution to the victims of the fraud. The credibility of Theranos was attributed in part to Holmes's personal connections and ability to recruit the support of influential people, including Henry Kissinger, George Shultz, James Mattis, and Betsy DeVos, all of whom had served or would go on to serve as U.S. presidential cabinet officials.

Holmes was in a clandestine romantic relationship with Balwani throughout most of Theranos's history.[9] Holmes and Balwani jointly ran the company with a "dysfunctional corporate culture" of "secrecy and fear" according to employees.[10] Staff also claimed that those who "raised concerns or objections" were "usually marginalized or fired" by the pair.[10] Following the collapse of Theranos, Holmes started dating hotel heir William "Billy" Evans, whom she married in 2019 and had two children with (born in 2021 and 2023).[11]

  1. ^ Cite error: The named reference Keenan was invoked but never defined (see the help page).
  2. ^ Cite error: The named reference Griffith was invoked but never defined (see the help page).
  3. ^ Levine, Matt (March 14, 2018). "The Blood Unicorn Theranos Was Just a Fairy Tale". Bloomberg View. Archived from the original on March 14, 2018. Retrieved March 14, 2018.
  4. ^ Abelson, Reed (April 24, 2016). "Theranos's Fate Rests With a Founder Who Answers Only to Herself". The New York Times. Archived from the original on June 13, 2018. Retrieved April 30, 2016.
  5. ^ "Forbes Announces Inaugural List Of America's 50 Richest Self-Made Women". Forbes. May 27, 2015. Archived from the original on September 9, 2018. Retrieved September 8, 2018.
  6. ^ Herper, Matthew (June 1, 2016). "From $4.5 Billion To Nothing: Forbes Revises Estimated Net Worth Of Theranos Founder Elizabeth Holmes". Forbes. Archived from the original on December 16, 2019. Retrieved January 6, 2017.
  7. ^ "The World's 19 Most Disappointing Leaders". Fortune. March 30, 2016. Archived from the original on November 23, 2016. Retrieved December 2, 2016.
  8. ^ Cite error: The named reference Baron 2022 was invoked but never defined (see the help page).
  9. ^ Leskin, Paige (October 4, 2019). "3 lawyers defending Theranos founder Elizabeth Holmes say they haven't been paid in over a year and would like to quit". Business Insider. Archived from the original on April 12, 2020. Retrieved September 1, 2020. Holmes and Balwani, who hid that they were romantically involved for much of the time they headed Theranos
  10. ^ a b Cite error: The named reference Carreyrou 2018-05-19 was invoked but never defined (see the help page).
  11. ^ Hurley, Bevan (May 31, 2023). "Who is Billy Evans, the husband of Theranos founder Elizabeth Holmes?". The Independent. Retrieved August 24, 2024.