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You are here: Home / Economics / Show Us on the Doll Where the Invisible Hand Touched You / Late Night Schadenfreude Open Thread: Elizabeth ‘Liz’ Holmes Is Going to Jail

Late Night Schadenfreude Open Thread: Elizabeth ‘Liz’ Holmes Is Going to Jail

by Anne Laurie|  May 18, 20232:39 am| 37 Comments

This post is in: Show Us on the Doll Where the Invisible Hand Touched You, Schadenfreude, Sociopaths

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Court denies Elizabeth Holmes' request to remain free while appealing conviction https://t.co/QjS9AqTiM4 pic.twitter.com/tQQ8tu9ZHL

— Reuters (@Reuters) May 17, 2023

Designated NYTimes stenographer Amy Chozick already missing those sweet beachside mimosas!

Theranos founder Elizabeth Holmes and former CEO Ramesh “Sunny” Balwani were on Tuesday ordered to pay $452 million to victims of the blood-testing startup’s fraud, and an appeals court also denied Holmes’ request to remain out of prison while challenging her conviction.

Holmes, who rose to fame after claiming Theranos’ small machines could run an array of diagnostic tests with just a few drops of blood, was convicted last year of misrepresenting the startup’s technology and finances. She was sentenced to 11 years and three months in prison.

Under the restitution order made by Judge Edward Davila in San Jose, California, who also oversaw Holmes’ trial and sentencing, both Holmes and Balwani are equally responsible for the full amount…

Holmes had asked the 9th U.S. Circuit Court of Appeals to pause her sentence on April 25, two days before she was to report to prison.

The court rejected her argument that the appeal is likely to result in a new trial, the threshold for her to remain free on bail. The denial of bail on Tuesday means Davila will now set a new date for her to go to prison…

John Carreyrou, reporter who literally wrote the book on the Theranos swindle:

Holmes will now be reporting to prison on May 30 to serve her 11-year sentence.

— John Carreyrou (@JohnCarreyrou) May 17, 2023

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Reader Interactions

37Comments

  1. 1.

    rikyrah

    May 18, 2023 at 2:47 am

    Good!

  2. 2.

    West of the Rockies

    May 18, 2023 at 2:50 am

    Well, stupid games…

  3. 3.

    Amir Khalid

    May 18, 2023 at 3:15 am

    I didn’t imagine the judge was going to be that patient for that long with Liz Holmes’ obvious delaying tactics. The pregnancy part, in particular: she was always going to get proper prenatal care in federal prison; and, as another Jackal pointed out, there’s nothing unusual about women prisoners giving birth while serving their sentences.

  4. 4.

    sukabi

    May 18, 2023 at 3:21 am

    here’s another late night giggle….Erik Prince has been indicted for gun running…

     

    https://twitter.com/capitolhunters/status/1659012406956429318?s=20

  5. 5.

    Hkedi [Kang T. Q.]

    May 18, 2023 at 3:22 am

    Welcome to how the other 99% live!  Have a shitty day!

  6. 6.

    AlaskaReader

    May 18, 2023 at 3:26 am

    @Amir Khalid:

    Wait?

    Let’s not kid anyone anywhere about federal prison health care.

    …she was always going to get proper prenatal care in federal prison

    There’s evidence to the contrary.

    Pregnant women in DOJ custody.  (pdf)

    More

  7. 7.

    Chetan Murthy

    May 18, 2023 at 3:38 am

    @AlaskaReader: Most female  prisoners don’t have gazillionaire hubbies who can afford the best lawyers.  Though gosh, I’d cry really large tears if hubs decided he couldn’t risk his money getting seized to pay off the wife’s restitution, and took a hike.  Boy, I’d be cryin’ some large tears if that were to happen.

  8. 8.

    Amir Khalid

    May 18, 2023 at 3:46 am

    @AlaskaReader:

    I understand the point you’re trying to make, but the evidence you cite against the US federal prison system doesn’t seem that damning.

  9. 9.

    AlaskaReader

    May 18, 2023 at 3:58 am

    @Chetan Murthy: Don’t know about where you’re advancing a supposition about  the hubby’ and how that modifies what care a prisoner may or may not receive, the contractors doing the health care aren’t at the beck and call of the hubby.

    …but what does that materially have to do with the records known concerning pregnant women and health care in federal custody?

    Can that be construed to defend the statement that we all know she’d get proper care?

    I don’t know who all expects that to be a truism, and I, for one, am quite certain there’s no basis to be declaring it as being a given.

  10. 10.

    AlaskaReader

    May 18, 2023 at 4:00 am

    @Amir Khalid: Damning enough to shoot holes in the premise that we all know she’d get proper care.

    Maybe talk with the women who did not get proper care.

    Perhaps you can set them straight, eh?

    Here’s some of your ‘not too damning’ for reference when you have your sit down with those women.

    While USMS and BOP both have policies that address the treatment and care of pregnant women, not all policies fully align with national guidance recommendations on 16 pregnancy-related care topics.

    Not too damning if you’re not on the receiving end, eh?

  11. 11.

    Chetan Murthy

    May 18, 2023 at 4:03 am

    @AlaskaReader: I assumed you had adduced the records concerning pregnant women and health care in federal custody, as support for the argument that she might not receive decent prenatal care in prison.  I was merely pointing out that the rich, with many lawyers at their beck-and-call, can get better “service” than the rest of us,  b/c they can make life intolerable for those prison workers and their bosses, and conversely, can make life pleasant for those who play ball.

    So yeah, I think she’ll get proper care.  She’s filthy, filthy rich.  I think you can expect that as her pregnancy progresses, a kindly judge will be found, who will order her to serve her time in some civilian hospital until she delivers.  Hell, I wouldn’t b surprised that when she *inevitably* gets post-partum depression, that judge will be prevailed-upon to send her to some sort of “sanitarium” where she can be treated for that depression, instead of back to the slammer where she belongs.

    The rich are different:  they have money.

  12. 12.

    AlaskaReader

    May 18, 2023 at 4:19 am

    @Chetan Murthy: Yeah, well, I didn’t miss that she’s rich, and that there is a ‘possibility’ she might get proper care,

    ..at the same time I don’t agree that her wealth automatically means she will in fact receive proper care.

    As the links I provided show, health care is contracted out and we all know how reliable private contractors in service to federal contracts are known to be.

    Read the links if you don’t know this to be true.

    Any given prisoner may or may not be able to avoid being caught up in a contractor that fails in it’s contract.

    Do you imagine the wealthy have all avoided any and all consequences of federal contracts going bad?

    The wealthy have advantages but they don’t have guarantees.

  13. 13.

    Michael Bersin

    May 18, 2023 at 4:29 am

    I’ve been poor and I’ve been not so poor. Rich is better.

  14. 14.

    The Dark Avenger

    May 18, 2023 at 4:54 am

    @AlaskaReader, if she has any problems she can reach out to her newest bestie at the FTFNYT.  Unlike the rest of her fellow inmates.

  15. 15.

    AlaskaReader

    May 18, 2023 at 5:08 am

    @The Dark Avenger:

    Amy Chozick has the power to prevent any possible adverse health care consequences for her?

    Call me unconvinced…

  16. 16.

    The Dark Avenger

    May 18, 2023 at 5:21 am

    @AlaskaReader: She’d get the info out faster than you could say Barry Allen.  Please don’t expect me to weep copious tears for her fate, unless you are against incarceration for her fellow inmates as well, mothers and non-mothers alike.

  17. 17.

    AlaskaReader

    May 18, 2023 at 5:27 am

    @The Dark Avenger:

    …ah, …you thought interjecting a ‘rhetorical device’ would help your case?

    Yeah, no, …I’ll thank you not to be thinking you’re going to be putting words in my mouth.

  18. 18.

    The Dark Avenger

    May 18, 2023 at 5:39 am

    @AlaskaReader: I have serious objections to non-violent people getting locked up for financial crimes, if you think she should be out on home arrest and wearing a tracker bracelet for a few years, I could go for that.  Otherwise, she’s a prime example of FOFA.

  19. 19.

    snoey

    May 18, 2023 at 5:47 am

    @The Dark Avenger: Juiceroo was a financial crime. Fraudulent medical tests endanger lives.

  20. 20.

    Manyakitty

    May 18, 2023 at 5:56 am

    @sukabi: lock him up

  21. 21.

    geg6

    May 18, 2023 at 6:05 am

    @AlaskaReader:

    She’ll end up at a Club Fed facility due to her wealth and fame and the white collar nature of her crimes.  And having spent some time providing social/education services in prisons, I can tell you that she’ll be just fine there.  Save your concerns for all the less wealthy and famous people in actual prisons.

  22. 22.

    waspuppet

    May 18, 2023 at 7:12 am

    Wait just a fck’s actual second. Amy Chozick wrote that knowing it would come out a week before a court date? I thought it was puffery for puffery’s sake. But this was intended to influence a court proceeding. And Chozick knew it.

    I’m shocked but not surprised. But I’m really shocked.

  23. 23.

    JML

    May 18, 2023 at 8:10 am

    If there’s someone I don’t give a damn about it’s Liz Holmes. Take her money, put her in prison where she belongs, ignore her for the rest of her useless life.

  24. 24.

    Burnspbesq

    May 18, 2023 at 8:24 am

    @AlaskaReader:

    Ironically, FPC Bryan, where Holmes is going, is probably one of the only places in Texas where a civilian woman can get medically appropriate reproductive health care.

  25. 25.

    EmbraceYourInnerCrone

    May 18, 2023 at 8:28 am

    @JML: What amazes me is that so many supposedly smart, rich people were taken in by a college drop-out with no experience or education in the field she was trying to get them to invest in.    What bothers me even more is that the employees who tried to warn investors, did not leave the company sooner when they realized she was promoting a fraud.

    But then so many supposedly well educated, rich people invested in and promoted crypto.  An inherently “vaporware” concept and product that’s also horrendous in its effects on the environment and power grid…

  26. 26.

    Barbara

    May 18, 2023 at 8:33 am

    @Chetan Murthy: The truth is somewhere in between.  If you need medical care in prison you are definitely at risk of whatever is thrown your way.  People who have complications or complex needs are at special risk.  The federal system, particularly the minimum or medium security facilities — is better than what many states provide.

    However, it is exceedingly unlikely a “kindly” judge will figure out how to send Holmes to a more comfortable institutional environment.  The federal prison system doesn’t work like that.

  27. 27.

    EmbraceYourInnerCrone

    May 18, 2023 at 8:45 am

    @Barbara:  IS Holmes pregnant again? She already has 2 kids that she deliberately conceived and birthed, while waiting to be charged and then while waiting to be sentenced.  Side note, why can’t the lovely NY times stories use a mug shot instead of these lovely soft focus glamor shots of Holmes.

  28. 28.

    Barbara

    May 18, 2023 at 8:51 am

    @EmbraceYourInnerCrone: Not that I am aware of.  I can understand why she decided to have kids before going to prison — it’s exceedingly unlikely she would be able to have them after serving her sentence and her husband’s family seems to be pretty stable.

    But I am really tired of reading about her.  When I saw that NYT article I nearly gagged.  I didn’t read it, just the picture was enough.  Think about how many women in business would benefit from publicity that the NYT could give them.  Instead, we get another pointless article about a loser sociopath.

  29. 29.

    Ken

    May 18, 2023 at 9:04 am

    @snoey: Fraudulent medical tests endanger lives.

    I thought that the charges against Holmes were only for the defrauding of investors, because prosecutors thought that showing harm to patients would be more difficult.

  30. 30.

    snoey

    May 18, 2023 at 9:26 am

    @Ken: Al Capone got 11 years for tax fraud. Same principles apply.

  31. 31.

    EmbraceYourInnerCrone

    May 18, 2023 at 9:41 am

    @Barbara: Yes, articles about people who succeeded against difficult beginnings and lack of access to the types of advantages Holmes has would be great.    I find it beyond ironic that her father was a VP at Enron…….

  32. 32.

    Barbara

    May 18, 2023 at 10:23 am

    @Ken: There were charges associated with fraudulent lab tests and she was acquitted on those.

  33. 33.

    thalarctosMaritimus

    May 18, 2023 at 10:30 am

    @Ken: you’re right that it’s harder to prove actual harm to patients, just like it’d be hard to prove her exact culpability in hounding that research scientist to suicide.

    Prosecutors often don’t bring charges that they can’t prove; that doesn’t mean it’s not true, just unprovable. But the fact that people trusted the results of her fraudulent test means people were harmed, although the actual harm hasn’t been quantified.

  34. 34.

    TheTruffle

    May 18, 2023 at 11:05 am

    @AlaskaReader: She’s a rich, blond white lady. She. Will. Get. Decent. Health Care.

  35. 35.

    way2blue

    May 18, 2023 at 12:03 pm

    One of my sons interviewed with Theranos shortly after he finished at UCD.  Thankfully he didn’t get sucked into that morass.  Rather he began working in a Stanford immunology lab.

  36. 36.

    way2blue

    May 18, 2023 at 12:14 pm

    @EmbraceYourInnerCrone:

    I met a person at a dinner party when the Theranos fraud was coming to light who was in a similar biomedical field who said the claim that micro blood samples would give consistent results was absurd on its face.  As blood taken from different parts of a body will yield different results.  So it seems people in the field knew Theranos’ claims were bogus, but that push back wasn’t widely publicized.

  37. 37.

    artem1s

    May 18, 2023 at 1:58 pm

    @sukabi: ​
     

    Erik Prince has been indicted for gun running…

    can we send him to the Hague for his trial? Can we send Darth Cheney with him?

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