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Elizabeth Holmes, former Theranos CEO, has said she can't afford to pay $250 a month in restitution to the victims of her fraudulent business. Despite previously having a personal wealth estimated at $4.5 billion, she now claims to have limited financial resources and is already serving an 11-year prison sentence.
Justice Department's Restitution Request: The Justice Department wants Holmes to pay $250 a month, or 10% of her income, to Theranos victims after she leaves prison.
The company claimed to be able to conduct multiple medical tests and disease detection with a few blood drops, but this turned out to be untrue.
Response from Holmes' Attorneys: Holmes' lawyers, however, have argued that she has limited financial resources.
They've requested that a judge reject the Justice Department's motion to include the $250 monthly payment in her restitution plan.
Current Restitution Order: Holmes and former Theranos COO Ramesh "Sunny" Balwani are ordered to pay $452 million in restitution to Theranos victims.
Holmes is mandated to pay $25 every three months while she's in prison.
The Justice Department filed a motion to add the $250 per month restitution payments after her release, claiming the omission of such a plan was a clerical error.
Holmes' Current Financial Status: Holmes is married to Billy Evans, the heir of a luxury hotel chain, and they have two small children.
She claims that the collapse of Theranos led to her losing all her wealth and that she has no assets.
She also doesn't expect to work in her sector in the future.
Both Holmes and Balwani have mentioned that their extensive legal bills have left them almost broke.
Proposed Restitution Plan for Balwani: The Justice Department's proposed restitution schedule for Balwani, who is serving a 13-year prison sentence for his involvement in Theranos, is akin to Holmes'.
Balwani is expected to pay $1,000 per month in restitution once he's released from prison.
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