Theranos, Inc. · securities fraud · criminal prosecution · healthcare
Was Elizabeth Holmes convicted of defrauding Theranos investors, and does the conviction stand?
Yes. A jury in January 2022 convicted Elizabeth Holmes on four counts of conspiracy and wire fraud against Theranos investors and acquitted her on the four patient related counts. She was sentenced on 18 November 2022 to 135 months in prison and was later ordered to pay $452 million in restitution jointly with Ramesh Balwani. The Ninth Circuit affirmed on 24 February 2025 and denied rehearing on 8 May 2025. In March 2026 the trial judge reduced her prison term to 123 months under a retroactive guidelines change, and as of 30 October 2026 she remains in custody with a commutation request reported as pending.
Last verified 30 October 2026. United States · Also concerns Elizabeth A. Holmes
The record at a glance
| What was alleged? | The SEC alleged in 2018 that Theranos, Holmes and former president Ramesh Balwani raised more than $700 million through misleading statements about the company's blood analyser, its use by the Department of Defense and its revenue. Federal prosecutors charged Holmes with wire fraud and conspiracy involving investors and patients.1,2 |
|---|---|
| Who made the claim? | US Securities and Exchange Commission and US Department of Justice, 14 March 2018 |
| How did Theranos respond? | Holmes and Theranos settled the SEC case without admitting or denying the allegations. Holmes pleaded not guilty and contested the criminal charges at trial and on appeal. At sentencing she apologised to investors and patients and said she was devastated by her failings.1,3 (the subject's position) |
| Was there an official finding? | Holmes was convicted of one count of conspiracy to commit wire fraud and three counts of wire fraud involving Theranos investors, and acquitted of the patient related counts.2 The Ninth Circuit affirmed the convictions, sentence and restitution on 24 February 2025.2 |
| Was liability determined? | Yes, liability was determined. Holmes: convicted on four counts, affirmed on appeal 24 February 2025, rehearing denied 8 May 2025. Her prison term was reduced to 123 months in March 2026, which does not affect the conviction. Theranos: SEC civil settlement without admission or denial in 2018.1,2,6 |
| What changed later? | As of 30 October 2026 Holmes's conviction stands affirmed and she remains in federal custody, with ABC News reporting in September 2026 a scheduled transfer to a halfway house on 23 August 2027 and a projected release date of 22 February 2030.2,7,8 |
| When was this checked? | 30 October 2026 |
What was alleged?
The SEC alleged in 2018 that Theranos, Holmes and former president Ramesh Balwani raised more than $700 million through misleading statements about the company's blood analyser, its use by the Department of Defense and its revenue. Federal prosecutors charged Holmes with wire fraud and conspiracy involving investors and patients.1,2
Made by US Securities and Exchange Commission and US Department of Justice on 14 March 2018.
What did Theranos say?
Holmes and Theranos settled the SEC case without admitting or denying the allegations. Holmes pleaded not guilty and contested the criminal charges at trial and on appeal. At sentencing she apologised to investors and patients and said she was devastated by her failings.1,3
"I am devastated by my failings. I'm so so sorry."
Elizabeth Holmes, at sentencing (as reported by CNBC), 18 November 2022. This is the subject's own account, not a finding.
What do independent records show?
Civil fraud charges and settlement with Theranos and Holmes
US Securities and Exchange Commission, 14 March 2018
Holmes agreed, without admitting or denying the allegations, to a $500,000 penalty, return of 18.9 million shares, giving up voting control, and a 10 year bar from serving as an officer or director of a public company. Theranos also settled without admitting or denying.1
Sentencing, United States v. Holmes, No. 5:18-cr-00258-EJD
US District Court for the Northern District of California (Judge Edward Davila), 18 November 2022
Holmes was sentenced to 135 months in prison following her conviction on Count 1 (conspiracy to commit wire fraud against investors) and Counts 6, 7 and 8 (wire fraud). The jury acquitted her on the patient counts (Counts 2 and 10 to 12) and did not reach a verdict on Counts 3 to 5.2,3
United States v. Holmes, Nos. 22-10312, 23-1040, 23-1167 (consolidated with Balwani appeals), opinion by Judge Nguyen
US Court of Appeals for the Ninth Circuit, 24 February 2025
The court affirmed the convictions, the 135 month sentence and the $452 million restitution order, imposed jointly and severally with Balwani.2
Order denying panel rehearing and rehearing en banc (reported)
US Court of Appeals for the Ninth Circuit, 8 May 2025
The panel denied rehearing and no judge requested an en banc vote, according to ABC7 News and The Spokesman-Review.4,5
Order reducing sentence under retroactive Guidelines amendment (reported)
US District Court for the Northern District of California (Judge Edward J. Davila), 26 March 2026
The court reduced Holmes's prison term from 135 months to 123 months, finding she was eligible for the two level reduction in U.S.S.G. 4C1.1 because she did not personally cause substantial financial hardship within the meaning of the guideline, according to the Volokh Conspiracy and ABC News. The conviction was not affected.6,7
What was established?
- Holmes was convicted of one count of conspiracy to commit wire fraud and three counts of wire fraud involving Theranos investors, and acquitted of the patient related counts.2
- The Ninth Circuit affirmed the convictions, sentence and restitution on 24 February 2025.2
Distinctions that matter here
- Holmes was convicted on investor counts and acquitted on patient counts.
- The SEC settlements were without admission or denial and are separate from the criminal conviction.
- A commutation request is not a pardon and has not been granted in records reviewed.
- A sentence reduction under a retroactive Guidelines amendment shortens the prison term but leaves the conviction in place.
Was liability determined?
Yes, liability was determined. Holmes: convicted on four counts, affirmed on appeal 24 February 2025, rehearing denied 8 May 2025. Her prison term was reduced to 123 months in March 2026, which does not affect the conviction. Theranos: SEC civil settlement without admission or denial in 2018.1,2,6
What remains unresolved?
- Whether Holmes filed a petition for certiorari in the US Supreme Court was not confirmed.
- The outcome of the commutation request, which The Daily Beast reported in September 2026 was listed as pending by the Office of the Pardon Attorney.
What is the current status?
As of 30 October 2026 Holmes's conviction stands affirmed and she remains in federal custody, with ABC News reporting in September 2026 a scheduled transfer to a halfway house on 23 August 2027 and a projected release date of 22 February 2030.2,7,8
As of 30 October 2026. Next known step: 23 August 2027 scheduled transfer to a residential reentry center, as reported by ABC News.
Timeline
- SEC charges and settles with Theranos and Holmes.1
- Holmes sentenced to 135 months.3
- Ninth Circuit affirms.2
- Ninth Circuit denies rehearing.4,5
- Reports say Holmes has asked for commutation, pending with the Office of the Pardon Attorney.9
- Judge Davila reduces the prison term to 123 months.6,7
- ABC News reports a scheduled halfway house transfer in August 2027.7
Sources
- US Securities and Exchange Commission, Theranos, CEO Holmes, and Former President Balwani Charged With Massive Fraud (Press Release 2018-41), 14 March 2018 · document record Court, legislation, official register or regulator record
- US Court of Appeals for the Ninth Circuit, United States v. Holmes, Nos. 22-10312, 23-1040, 23-1167 (opinion), 24 February 2025 · document record Court, legislation, official register or regulator record
- NBC 7 San Diego (CNBC), Theranos Founder Elizabeth Holmes Sentenced to More Than 11 Years in Prison (CNBC), 18 November 2022 Independent reporting
- ABC7 News, Court denies ex-Theranos CEO Elizabeth Holmes' petition to have fraud conviction appeal reheard, 11 May 2025 Independent reporting
- The Spokesman-Review, Theranos felon Elizabeth Holmes loses again in court, 9 May 2025 Independent reporting
- Reason, The Volokh Conspiracy (quoting the order), Theranos Fraudster Elizabeth Holmes' Sentence Reduced by 1 Year, 27 March 2026 Secondary commentary
- ABC7 News (ABC News), Elizabeth Holmes scheduled to move to halfway house in August 2027, 23 September 2026 Independent reporting
- The Daily Beast, Theranos Fraudster Elizabeth Holmes Gets Shock Early Prison Release After Trump Plea, 24 September 2026 Independent reporting
- ABC7 News (ABC News), Theranos founder Elizabeth Holmes asks Trump administration to commute her prison sentence, 21 January 2026 Independent reporting
Revision history
- 30 October 2026: First published after source verification.
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