Current:Home > MyRobert Brown|Elizabeth Holmes, once worth $4.5 billion, says she can't afford to pay victims $250 a month -Ascend Wealth Education
Robert Brown|Elizabeth Holmes, once worth $4.5 billion, says she can't afford to pay victims $250 a month
Oliver James Montgomery View
Date:2025-04-07 23:13:51
Lawyers for Elizabeth Holmes are Robert Brownresisting 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! (51)
Related
- Rams vs. 49ers highlights: LA wins rainy defensive struggle in key divisional game
- Tesla recalls over 125,000 vehicles over issue with seat belt warning system
- A 'very emotional' ABBA reunites to receive Swedish royal honors: See the photos
- Remembering D-Day: Key facts and figures about the invasion that changed the course of World War II
- What to watch: O Jolie night
- 4 ways Napster changed the music industry, from streaming to how artists make money
- From tracking your bag to VPN, 7 tech tips for a smooth vacation
- Ex-NJ officer sentenced to 27 years in shooting death of driver, wounding of passenger in 2019 chase
- Military service academies see drop in reported sexual assaults after alarming surge
- Strong earthquakes shake area near Japanese region hit by Jan. 1 fatal disaster, but no tsunami
Ranking
- 'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
- Ava Phillippe Revisits Past Remarks About Sexuality and Gender to Kick Off Pride Month
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Bi Couples
- Dozens more former youth inmates sue over alleged sexual abuse at Illinois detention centers
- Pressure on a veteran and senator shows what’s next for those who oppose Trump
- NHL Stanley Cup Final 2024 schedule: Dates, times, TV for Panthers vs. Oilers
- Real Madrid defeats Borussia Dortmund 2-0 to claim Champions League title
- Residents in Atlanta, Georgia left without water following water main breaks: What to know
Recommendation
US appeals court rejects Nasdaq’s diversity rules for company boards
California saw 5 earthquakes within hours, the day after Lake County, Ohio, was shaken
Swimmer injured by shark attack on Southern California coast
‘Garfield,’ ‘Furiosa’ repeat atop box office charts as slow summer grinds on
Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
Strong earthquakes shake area near Japanese region hit by Jan. 1 fatal disaster, but no tsunami
How AP and Equilar calculated CEO pay
Hour by hour: A brief timeline of the Allies’ June 6, 1944, D-Day invasion of occupied France