Elizabeth Holmes Begins 11-Year Sentence for Theranos Fraud

Elizabeth Holmes, the founder of Theranos, is expected to report to an all-female prison in Texas today to begin serving an 11-year sentence for defrauding investors with her Silicon Valley startup.

Holmes was found guilty of persuading investors that she had developed a revolutionary medical device, but the company flamed out after an investigation by The Wall Street Journal.

The startup attracted investments from high-profile moguls, including Rupert Murdoch, the Walton family, and former Education Secretary Betsy DeVos.

Prosecutors said Holmes lied to investors from 2010 to 2015 by promising that Theranos Inc's technology could run many tests on one drop of blood from a finger prick.

The company ultimately dissolved in September 2018, and Holmes has been asked to pay Rupert Murdoch the entire $125m he invested in her failed start-up.