Elizabeth Holmes, founder of Theranos Inc., arrives at federal court in San Jose, California, March 17, 2023.
Benjamin Fanjoy | Bloomberg | Getty Images
Imprisoned Silicon Valley CEO Elizabeth Holmes has shaved more months from her initial 11-year-plus sentence for wire fraud and conspiracy, federal records show, and is due to be released two years earlier than expected.
Holmes, 40, has a current release date of Aug. 16, 2032, from a women’s federal prison in Bryan, Texas, according to the Bureau of Prisons. Last July, her expected release date was listed as Dec. 29, 2032.
The disgraced founder of failed blood-testing startup Theranos entered prison in May 2023 after she was handed a 135-month prison sentence for defrauding investors out of hundreds of millions of dollars.
While the BOP declined to comment specifically about Holmes’ status for privacy and security reasons, the agency said in a statement that “projected release dates are calculated with several factors in mind.”Inmates are eligible for “good conduct time,” and those who qualify can earn up to 54 days for each year of sentence imposed by the court. In addition, inmates can see more time taken off their sentences by earning time credits that accrue when they complete certain prison and work programs, part of the federal government’s way to reduce recidivism and ease the prison population.
Time credits are awarded over a 30-day period for programs related to anger management, mental health, financial literacy and other topics that seek to address behavior and instill personal skills. Once the credits are calculated and it is determined those credits equal the time left on the sentence, the inmate can be transferred out of prison into “pre-release custody,” such as a halfway house or home confinement. Some may also be eligible for supervised release like probation.
Supporters of the Trump-era law say they believe it can cut particularly harsh sentences for nonviolent drug offenders and lessen the racial disparities affecting people of color in the criminal justice system, although the calculation of time credits has come under scrutiny in recent years.
Holmes is being held at FPC Bryan, a minimum-security prison camp where former “Real Housewives of Salt Lake City” star Jen Shah is serving her federal wire fraud sentence for a telemarketing scam.
A lawyer for Holmes did not respond to a request for comment about her prison sentence.
Along with Holmes, Theranos Chief Operating Officer Ramesh “Sunny” Balwani was also convicted at a separate trial for his role in the Theranos fraud, getting sentenced in December 2022 to nearly 13 years in prison.
He is currently set to be released on Nov. 22, 2032, from a federal prison in Southern California, which would be two years sooner than expected. His lawyer declined to comment about his prison time.
Meanwhile, a federal appeals court in San Francisco is set to hear oral arguments for Holmes’ appeal on June 11. The appeal will deal with “convictions, sentences, and restitution orders” related to the case, according to the court calendar. Balwani is also supposed to have his appeals case heard at that time.
After giving birth to her second child in early 2023, Holmes attempted to remain free on bail while appealing her conviction, but a judge denied that request.
Theranos, which said its technology could give users health data by testing blood from a single finger prick, became emblematic of startups that lured investors with false promises in the early 2000s. Holmes’ rise as a Stanford University dropout-turned-Silicon Valley sensation was the subject of investigative reports and a TV series that sought to scrutinize her dramatic story.
