By Theresa Braine
New York Daily News
DEL VALLE, Texas — Elizabeth Holmes, the disgraced onetime youngest self-made billionaire whose health care startup Theranos turned out to be a fraud, will be moved from her current minimum-security prison to a halfway house next year to finish out her prison term, officials said.
The move came to light in a federally mandated notice sent to victims from the U.S. Department of Justice’s Victim Notification System, ABC News first reported. Her new home as of Aug. 23, 2027, will be the Austin Transitional Center in Del Valle, Texas.
The residential reentry house, as such facilities are also known, provides services such as career counseling in a supervised environment, a DOJ source told People. She can get a job, go to and from work and have visitors. Holmes was assigned to one because she became eligible, the source said.
Holmes, now 42, became a tech industry darling when the then 19-year-old founded Theranos in the 2000s, claiming she’d cracked the code in blood testing with technology that could discern diseases and conditions from just a few drops of blood rather than the series of vials required by the $75 billion lab industry. Despite skepticism from some observers over a lack of transparency about how the company’s devices worked and how results were verified, she got enough funding to be dubbed the youngest-ever self-made billionaire.
Sporting black turtlenecks a la Steve Jobs, Holmes first gained renown and then infamy as the tech was unmasked as fraudulent by the Wall Street Journal and a subsequent federal investigation. By then, at least 12 investors were out a collective millions of dollars, and scores of people had been diagnosed — or not — with various conditions based on their pinpricked blood samples collected at their local pharmacy.
Holmes was convicted in 2022 on three counts of wire fraud and one count of conspiracy to commit wire fraud, sentenced to 11 years in prison, and lost an appeal. She has been serving her time at minimum-security Bryan Federal Prison Camp in Bryan Texas since reporting to prison on May 30, 2023, after several attempts to delay. That July, she got two years knocked off her term, putting her release date at Feb. 22, 2030, according to online Federal Bureau of Prisons records.
Her business partner at the time, Ramesh “Sunny” Balwani, is serving a 13-year prison sentence for his part in the crimes. Both were also ordered to pay $452 million in restitution to 12 victims, but at least one of them has not seen a dime.
Retired financial planner Alan Eisenman told NBC News he and his family invested $1.2 million in Theranos starting in 2006 and is due $150,000.
Holmes continues to maintain her innocence under the mantra, “Failure is not fraud,” but Eisenman is dubious.
“She was a liar back in 2006,” he told NBC News, “and she’s a liar today.”
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