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Ex-Theranos CEO Elizabeth Holmes claims inability to pay $250 monthly restitution

June 15, 2023
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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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