Elizabeth Holmes sentenced to 11 years in prison for Theranos fraud - Axios

Photo illustration: Aïda Amer. Photo: Justin Sullivan/Getty Images

Elizabeth Holmes connected Friday was sentenced by a California justice to 11 years and 3 months successful situation for defrauding investors successful her failed blood-testing company, Theranos.

Why it matters: This is the extremity of a years-long saga that saw the celebrated startup laminitis go a cautionary communicative of Silicon Valley's "fake it 'til you marque it" culture.

Flashback: Holmes successful January was found guilty of 4 charges of ligament fraud and conspiracy to perpetrate ligament fraud.

• Theranos had raised astir $1 cardinal from investors, including astatine a valuation of astir $11 billion, from specified backers arsenic Rupert Murdoch, Tim Draper, Betsy DeVos, James Mattis, the Walton household and the Cox family.
• The assemblage was incapable to scope a verdict connected 3 different charges involving investors. It didn't convict connected charges related to advertizing practices oregon Theranos patients, though the attorneys debated Friday whether oregon not the justice could instrumentality her behaviour toward patients into relationship during sentencing.
• Each blameworthy verdict carried a maximum condemnation of 20 years successful prison.

Background: Prosecutors had asked the judge for a 15-year sentence, portion Holmes' defence attorneys had asked for 18 months of location arrest.

• Prosecutors besides asked for afloat restitution for what they assertion was $804 cardinal successful capitalist losses tied to the blameworthy verdicts. But Judge Ed Davila lowered the applicable nonaccomplishment and said he'd perceive much connected restitution arguments successful the future.
• Holmes filed dozens of letters of enactment from household and friends, including 1 from Sen. Cory Booker (D-NJ).

What they're saying: "This lawsuit is truthful troubling connected truthful galore levels," Davila said, adding there's "no doubt" Holmes had the tendency to marque her institution successful.

• The justice besides said it whitethorn person been hubris oregon “intoxication with fame” that led to Holmes’ conduct.

Holmes, done tears, read a code successful tribunal saying, “I regret my failings with each compartment of my body,” Law360 reports.

• "Everday for the past fewer years I’ve felt heavy pain,” she said, adding that she failed her workers, investors and the patients she sought to serve. “I gave everything I had to physique our company.”

What's next: Holmes' erstwhile fellow and Theranos concern spouse Sunny Balwani in July was recovered guilty of 12 counts of conspiracy and fraud against definite investors and patients.

• Balwani is expected to beryllium sentenced connected December 7, and his lawyer was connected manus Friday for Holmes' sentencing.

Editor's note: Cox Enterprises, which backed Theranos, is the genitor institution of Axios.