Current:Home > FinanceElizabeth Holmes, once worth $4.5 billion, says she can't afford to pay victims $250 a month -AssetScope
Elizabeth Holmes, once worth $4.5 billion, says she can't afford to pay victims $250 a month
View
Date:2025-04-14 02:08:48
Lawyers for Elizabeth Holmes are resisting the government's bid to force the imprisoned Theranos founder to repay victims of her fraud, claiming she won't be able to afford the payments.
Holmes was convicted of defrauding investors in Theranos and ordered to repay $452 million to victims, who include backers such as News Corp. Chairman Rupert Murdoch and Oracle CEO Larry Ellison.
Holmes is jointly liable for the amount with Ramesh "Sunny" Balwani, her ex-boyfriend and Theranos' former chief operating officer, who was sentenced to a term of nearly 13 years in prison for his role in the fraud.
However, Holmes' financial judgment doesn't include a payment schedule aside from requiring her to pay $25 a month while in prison. The Justice Department last week filed a motion to correct that, calling the omission a "clerical error." In their filing, the Justice Department's lawyers proposed that Holmes pay $250 a month, or at least 10% of her income, once she's released from prison.
That's similar to Balwani's judgment, which requires him to pay $1,000 a month once he's out.
But Holmes' lawyers pushed back forcefully, citing Holmes' "limited financial resources."
"Mr. Balwani's amended judgment says nothing about what the Court intended for Ms. Holmes' restitution schedule. Ms. Holmes and Mr. Balwani have different financial resources and the Court has appropriately treated them differently," they wrote in a filing Monday.
- Three women escaped from the prison housing Elizabeth Holmes in 2017
- Former Theranos CEO Elizabeth Holmes reports to prison to serve her 11-year sentence for fraud
They noted that while the court fined Balwani $25,000, it did not impose a fine on Holmes.
Holmes, who was worth $4.5 billion at Theranos' peak, says she lost it all when the company's valuation collapsed after revelations it was lying about its capabilities. She has claimed in court filings that she has "no assets" and no hope of restarting her career after the Theranos scandal.
Holmes started serving her 11-year sentence last month at a minimum-security facility in Bryan, Texas, leaving behind her husband, hospitality heir William Evans, and their two small children.
- In:
- Elizabeth Holmes
veryGood! (54)
Related
- 'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
- The UAE ambassador takes post in Damascus after nearly 13 years of cut ties
- Teachers strike in Boston suburb enters its eighth day, with tensions fraying
- Samsung reports decline in profit but anticipates business improvement driven by chips
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- Samsung reports decline in profit but anticipates business improvement driven by chips
- Police officer fatally shoots man holding a knife at Atlanta veterans hospital
- Small business payroll growth is moderating, but that could mean more sustainable growth ahead
- Trump wants to turn the clock on daylight saving time
- Taylor Drift and Clark W. Blizzwald take top honors in Minnesota snowplow-naming contest
Ranking
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- El Salvador VP acknowledges ‘mistakes’ in war on gangs but says country is ‘not a police state’
- Former U.S. Sen. Jean Carnahan, the first woman to represent Missouri in the Senate, has died at 90
- Georgia seaports handled a record number of automobiles in 2023 while container trade dropped 16%
- Taylor Swift Eras Archive site launches on singer's 35th birthday. What is it?
- Taylor Drift and Clark W. Blizzwald take top honors in Minnesota snowplow-naming contest
- Parents share heartwarming stories of how Taylor Swift has inspired girls to watch the NFL
- Another Super Bowl bet emerges: Can Taylor Swift make it from her Tokyo show in time?
Recommendation
California DMV apologizes for license plate that some say mocks Oct. 7 attack on Israel
Biden will go to Michigan to meet with United Auto Workers members
Virginia Senate panel votes to reject Youngkin nominations of parole board chair, GOP staffer
More navigators are helping women travel to have abortions
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
Charles Osgood: CBS News' poet-in-residence
Princess Kate back home from hospital after abdominal surgery and recovering well, Kensington Palace says
Justice Dept indicts 3 in international murder-for-hire plot targeting Iranian dissident living in Maryland