Elizabeth Holmes, the disgraced CEO of blood-testing startup Theranos, said she couldn’t afford to pay $250 a month to those who lost money because of false claims she made about her company.
bloomberg reported on Monday Holmes, who was convicted of defrauding investors earlier this year, told the judge via her legal team that she will not be able to pay $250 a month in damages once she finishes serving an 11-year prison sentence that began last month.
Last month, a judge ordered Holmes to pay just over $452 million in restitution to the victims of her crimes.
She is jointly responsible for the nine-figure sum with Ramesh “Sunny” Balwani, her ex-boyfriend and ex-Theranos boss, who is serving a 13-year prison sentence for his role in the Theranos hoax.
Criminal compensation is the money ordered by a court to compensate an offender’s victims for financial losses that arose as a direct result of their crimes. reply Don’t serve as a punishment to the perpetrator, but as a monetary debt owed to their victims. However, compliance with the extradition order becomes a condition of the offender being placed on probation.
Although restitution is a court-ordered obligation, The chance of a full refund is lowAs many of the defendants do not have sufficient wealth or assets to compensate their victims upon their release from prison.
Victims usually receive a number of small payments over a long period of time, as perpetrators often have large sums to pay off a large number of people.
Both Holmes and Balwani were ordered to begin making quarterly restitution payments of $25 while they were in prison. Holmes did not object to this condition, bloomberg mentioned.
Once a 9 billion dollar company
While building Theranos into a $9 billion company, Holmes raised nearly $1 billion from investors including media tycoon Rupert Murdoch, Oracle co-founder Larry Ellison, and the famous Walmart family.
They have lost their money yet investigations conducted by him Wall Street Journal revealed how the blood-testing company’s technology didn’t work; How she tried to cover up her failures. And how the company put the health of its patients at risk. Theranos denied the allegations in the reports, but the revelations set off a chain of events that would lead to its downfall.
In his recovery ruling, US District Judge Edward Davila said Holmes and Balwani must pay $125 million to Murdoch, $40 million to pharmacy chain Walgreens, and less than 13 other victims of the fraud.
While the judge ordered Balwani to pay a minimum of $1,000 per month or 10% of his earnings in damages once he is released, it is not specified how much Holmes must pay after serving her prison term.
prosecutors, bloomberg She stated, that there was a clerical error in the paperwork involved in the Holmes case, and asked Davila to correct it so that Holmes would be required to make fixed monthly payments of $250 to her victims upon her release from prison.
However, according to bloombergAttorneys for Theranos argued that it had “limited financial resources” and therefore should not have been forced to pay $250 per month in compensation. Her legal team reportedly said that prosecutors erred in assuming that no post-prison payment plan meant the judge made a mistake.
Holmes’ lawyers did not respond luckHe asked for comment on her ability to pay half of the nine-figure compensation amount.
according to ForbesHolmes broke nowwith a net worth of $0.
It’s a far cry from where she was at the peak of her once glittering career. Before her stunning fall, it was Holmes who dropped out of Stanford name of the thing The world’s youngest self-made billionaire, with a net worth of $4.5 billion when she was 30 years old.