Elizabeth Holmes owes more than $25m to Theranos, lawsuit claims
Disgraced founder who was sentenced last November to 11 years in prison for defrauding investors has not paid back the money she owes
Elizabeth Holmes currently owes more than $25m to Theranos, according to a lawsuit.
The disgraced founder of Theranos was sentenced last November to more than 11 years in prison for defrauding investors, after being convicted over her role in the blood testing firm that collapsed after its technology was revealed to be largely fraudulent.
And she has allegedly not yet paid back the $25m that she owes, according to a lawsuit which was filed last December but only surfaced on Friday during Holmes’s latest court appearance.
According to the lawsuit reviewed by CNBC, Holmes executed several promissory notes during her time as Theranos CEO. In 2011, she executed two promissory notes in August and December in the amounts of $9,159,333.65 and $7,578,575.52, respectively. Then, in December 2013, Holmes executed a promissory note in the amount of $9,129,991.10.
Two of the payments were due in 2016 and the third note was due in 2018. According to the lawsuit, the board of directors at the fraudulent blood-drawing company extended the notes’ terms in July 2016 by five years, CNBC reports.
The initial two notes are overdue and the payment for the third note is due in December, according to the lawsuit.
“Theranos ABC has demanded payment of promissory Note #1 and promissory Note #2 from Holmes, but Holmes has failed to pay any amounts on account of promissory Note,” the lawsuit said, CNBC reports.
Holmes, who was convicted on four counts of wire fraud and conspiracy to commit wire fraud, was ordered to self-surrender to prison on 27 April. However, her attorneys have been attempting to delay the beginning of her sentence, despite prosecutors arguing that Holmes should start serving the sentence instead of living on a California estate with an alleged monthly upkeep of over $13,000.
Earlier this month, Holmes’s attorneys revealed that Holmes gave birth to her second child, less than two months after prosecutors argued that Holmes had made an “attempt to flee” the US with a one-way ticket to Mexico after she was convicted last January.