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As disgraced Theranos founder Elizabeth Holmes settles into her new life at a Texas prison, lawyers have been busy ironing out exactly how she will repay the hundreds of millions of dollars owed to the investors she defrauded over the course of years.
Federal prosecutors recently petitioned the court to mandate that Holmes pay $250, or at least 10 percent of her income, every month once she is released, however, her attorneys asked that the plan be nixed, citing her "limited financial resources."
According to the BBC, the original restitution plan had only required that Holmes make quarterly payments of $25 while she serves her sentence in prison, however, government lawyers said they had made a "clerical error," and presented the updated version. On Monday, Holmes' lawyers asked the court to reject the "government-crafted change."
Prior to being arrested, Holmes had an estimated net worth of $4.5 billion, however, Forbes recently reduced that number to zero. While serving her 11-year prison sentence, she will have the chance to work for a maximum wage of $1.15 per hour. Holmes acknowledged her financial hardship, saying she will "have to work for the rest of [her] life" to repay the people she defrauded.
According to the restitution order, Holmes has been ordered to repay twelve investors to the tune of nearly $400 million. Included in the list are Rupert Murdoch, Black Diamond Ventures, and former Secretary of Education Betsy DeVos.
Theranos, which was valued at $9 billion at its height, shut down in 2018 after a series of articles by the Wall Street Journal exposed the company's false claims that its device could test minute amounts of blood.
"I loved Theranos. It was my life's work," Holmes said. "My team meant the world to me. I am devastated by my failings. I'm so so sorry. I gave everything I had to build my company."
Former Theranos operating chief Ramesh "Sunny" Balwani was also found guilty of fraud, and sentenced to 13 years in prison.
Federal prosecutors recently petitioned the court to mandate that Holmes pay $250, or at least 10 percent of her income, every month once she is released, however, her attorneys asked that the plan be nixed, citing her "limited financial resources."
According to the BBC, the original restitution plan had only required that Holmes make quarterly payments of $25 while she serves her sentence in prison, however, government lawyers said they had made a "clerical error," and presented the updated version. On Monday, Holmes' lawyers asked the court to reject the "government-crafted change."
Prior to being arrested, Holmes had an estimated net worth of $4.5 billion, however, Forbes recently reduced that number to zero. While serving her 11-year prison sentence, she will have the chance to work for a maximum wage of $1.15 per hour. Holmes acknowledged her financial hardship, saying she will "have to work for the rest of [her] life" to repay the people she defrauded.
According to the restitution order, Holmes has been ordered to repay twelve investors to the tune of nearly $400 million. Included in the list are Rupert Murdoch, Black Diamond Ventures, and former Secretary of Education Betsy DeVos.
Theranos, which was valued at $9 billion at its height, shut down in 2018 after a series of articles by the Wall Street Journal exposed the company's false claims that its device could test minute amounts of blood.
"I loved Theranos. It was my life's work," Holmes said. "My team meant the world to me. I am devastated by my failings. I'm so so sorry. I gave everything I had to build my company."
Former Theranos operating chief Ramesh "Sunny" Balwani was also found guilty of fraud, and sentenced to 13 years in prison.
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