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Elizabeth Holmes fights against demands she pay victims $250 a month

A lawyer for the former CEO of the failed blood testing company Theranos said Holmes has 'limited financial means' and should not have to pay.
Elizabeth Holmes fights against demands she pay victims $250 a month
Posted at 8:03 PM, Jun 13, 2023

Elizabeth Holmes, now serving an 11-year sentence for crimes related to overseeing the failed blood-testing company Theranos, is arguing she should not have to pay a suggested $250 per month to victims of the failed company. 

Federal prosecutors argued that Holmes should pay at least 10% of her wages or $250 per month, whichever is greater, as restitution after she is released from prison.

Holmes, 39, has entered a minimum-security women's prison camp located in Bryan, Texas, that holds about 650 inmates.

SEE MORE: Elizabeth Holmes is now in prison to begin 11-year sentence

Holmes was the CEO of Theranos, a startup that claimed its groundbreaking technology could detect diseases with a finger prick and just a few drops of blood. 

Those claims led to nearly $1 billion in funding. However, Holmes defrauded investors out of millions of dollars during her years running the company, promoting a blood-testing device that  never actually worked.

In a court filing, lawyers for Holmes argued that there "is no basis in the record for the payment structure in the government’s request." 

Her attorneys appeared not to object to a request that she pay $25 each quarter that she is in prison, as part of her restitution payments. It's possible that Holmes could hold a job at the women's prison camp, making wages that would likely fall under $2 per hour. 

Holmes has reportedly been ordered to pay around $452 million in restitution to those she is accused of defrauding in the process of trying to build her failed company. 

Her former lover and business partner Ramesh “Sunny” Balwani was given a 13-year prison sentence this year. 


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