Court orders Elizabeth Holmes to start serving prison sentence after rejecting her bail plea

Theranos founderElizabeth Holmeshas been ordered to begin serving her prison sentence while she appeals against her conviction on charges of defrauding investors. A court in San Francisco ruled that Holmes must jointly pay $452 million in restitution to the victims of her crimes. Holmes, who gained fame by claiming that Theranos' blood-testing machines could run a variety of diagnostic tests with just a few drops of blood, was convicted in 2022 and sentenced to 11 years and three months in prison.

Holmes will pay $452 million in restitution

Holmes had requested the ninth US circuit court of appeals to pause her sentence, but her bail application was denied. The judge will set a new date for Holmes, 39, to report to prison. In a separate ruling, Judge Edward Davila held Holmes jointly liable for the restitution payments and ordered her to pay the $452 million along with her former partner and top Theranos executive, Ramesh "Sunny" Balwani.

Watch:Theranos founder Elizabeth Holmes sentenced to 11 years in prison for defrauding investors

Balwani, 57, began serving a nearly 13-year prison sentence in April after being convicted on fraud and conspiracy charges. Holmes and Balwani were involved in a scheme to deceive investors and raise nearly $1 billion for Theranos. Their technology was exposed as flawed after investigations and regulatory reviews, resulting in significant financial losses for investors.

Holmes directed to pay $125 mn to Rupert Murdoch

Judge Davila determined that Holmes and Balwani should pay the largest sum, $125 million, to media mogul Rupert Murdoch, one of the investors who suffered losses.

The restitution also includes payments of $40 million to Walgreens, a former investor, and $14.5 million to Safeway, a former business partner of Theranos.

Prosecutors had sought a restitution penalty in the range of $800 million, but Holmes and Balwani's lawyers argued for lower amounts, claiming financial difficulties. Both defendants have claimed they are nearly broke after incurring significant legal expenses.

Holmes's lawyers have been challenging her conviction, alleging mistakes and misconduct during the trial. They have also argued for her to remain out of prison during the appeal, but their request has been rejected by the court.

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