Elizabeth Holmes was a multi-billionaire biotech tycoon in 2015. She received her 11-year sentence in prison today.

Elizabeth Holmes recently enjoyed great popularity in the biotech sector. Numerous publications featured complimentary articles on her (including DailyGist). Her net worth surpassed $4.5 billion in 2015 due to the phenomenal growth of her business (on paper). Elizabeth holds the world record for the world's youngest self-made millionaire. Thanks to her blood testing business Theranos' alleged scientific innovation, she was hailed as an inventor and visionary.

Sadly, such times are long gone. She lost her riches after being found guilty of many criminal charges and given an 11-year jail sentence today.

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For those who may have forgotten, Theranos once boasted that it could carry out several highly specialized tests and inspections and use a little blood test that could be completed at your neighborhood CVS. Details would be available pretty quickly. This was considered a miracle because, up until that point, the standard of care necessitated patients going to a blood lab, where blood would be extracted with a needle, and findings wouldn't have been revealed for days.

Sadly, Theranos' supposedly miraculous blood test results were not really amazing.

Theranos first came under fire when a Wall Street Journal article that questioned the validity and accuracy of its blood test was published in October 2016. This prompted an investigation, which led to the closure of one of Theranos' laboratories where blood was also examined. For two years, Holmes was prohibited from managing a clinical lab.

The business reached a settlement with the Centers for Medicare and Medicaid Services in 2017, the government body in charge of enforcing laws governing blood testing laboratories. In the settlement, Theranos consented to a two-year ownership and operation ban on clinical labs.

Theranos and Holmes were accused of fraud in 2018 by the Securities & Exchange Board. Holmes consented to cut her stock position in the business as part of the fraud disclosure, as well as to give up majority voting control. A $500,000 fine was also paid to her.

The following are the claims made by the SEC against Theranos and Holmes:

Theranos "made several false and misleading claims regarding its blood-testing technology in investor presentations, product demonstrations, and media pieces" while raising more than $700 million.

There were allegations that Theranos' technology was being used by the Department of Defense and that the company would earn more than $100 million in sales in 2014. The government never actually used the technology, according to the SEC, and the business generated around $100,000 in income that year.

Director of the SEC's Enforcement Division Steven Peikin stated in a press release:

"Investors have a right to nothing less from businesses and their CEOs than the whole truth and nothing but the truth. The accusations against Theranos, Holmes, and Balwani demonstrate that a firm is not free from the federal securities laws' anti-fraud provisions just because it is private, in the early stages of development, or the focus of a lot of media attention."

Elizabeth Holmes and Sunny Balwani were charged with nine charges of bank fraud and sentenced to two years of conspiracy to conduct fraud and money laundering by a federal grand jury in June 2018. A multi-year delay was brought on by COVID. In August 2021, her criminal trial got underway. She faced four charges of conviction in January 2022. Elizabeth was granted a 135-month prison term, or just over 11 years, on November 18, 2022. Sunny Balwani was found responsible for all of the counts in July 2022. He may spend as much as 20 years behind bars.