NATIONAL NEWS

Elizabeth Holmes objects to $250 monthly restitution payments proposed by government

Jun 14, 2023, 9:51 AM

FILE - Disgraced Theranos CEO Elizabeth Holmes, center, is escorted by prison officials into a fede...

FILE - Disgraced Theranos CEO Elizabeth Holmes, center, is escorted by prison officials into a federal women's prison camp on May 30, 2023, in Bryan, Texas. Federal prosecutors are seeking for Holmes to pay a monthly amount of $250 to victims of her failed blood testing startup after she leaves prison — but her attorneys have pushed back, citing the ex-Theranos CEO's “limited financial resources.” (AP Photo/Michael Wyke, File)
Credit: ASSOCIATED PRESS

(AP Photo/Michael Wyke, File)

WASHINGTON (AP) — Federal prosecutors want Elizabeth Holmes to pay $250 each month to victims of her failed blood testing startup after she leaves prison, but her attorneys are pushing back citing “limited financial resources” available to the disgraced founder of Theranos.

The U.S. filed a motion last week asking the court to correct “clerical errors” which included, prosecutors said, the lack of a timeline for restitution from the one-time billionaire once she exits prison. Holmes’ legal team objected to those changes this week.

Holmes, 39, began an 11-year sentence at a minimum-security facility in Bryan, Texas, late last month after she and her former partner, Ramesh “Sunny” Balwani, were convicted of fraud for duping investors out of hundreds of millions of dollars while running Theranos, a Silicon Valley startup that promised to revolutionize health care.

In a May 16 ruling, U.S. District Judge Edward Davila 13-year prison sentence in California, to pay $452 million in restitution to victims.

After paying a total of $25 every three months to victims while incarcerated, federal prosecutors want Holmes to pay at least $250 each month or 10% of her earnings, whichever is greater, in restitution once she is released from prison.

That would be similar structure to Balwani’s judgement, which requires the former Theranos COO to pay at least $1,000 per month upon supervised released, prosecutors said in last week’s filing.

Holmes’ lawyers argued this week that Holmes’ payment schedule in court documents is not a clerical error.

“Ms. Holmes’ Amended Judgment already includes a restitution schedule that begins while she is incarcerated,” Holmes’ attorneys wrote in a Monday filing. “There is no indication in the record that the absence of a change to the schedule after she is released was a clerical error.”

The defense team also argued that Balwani’s amended judgment says nothing about what the court intended for Holmes’ payment schedule — adding that Holmes and Balwani “have different financial resources and the Court has appropriately treated them differently.”

The Associated Press reached out to attorneys representing Holmes and the U.S. government for statements on Wednesday.

__________

AP Technology Writer Michael Liedtke in San Francisco contributed to this report.

National News

Associated Press

Cause of crash that killed NY couple at Niagara Falls border crossing still a mystery 8 months later

NIAGARA FALLS, N.Y. (AP) — A police investigation into the crash and explosion that killed two people in a high-powered luxury car at a Niagara Falls border crossing last year has concluded with the crash’s cause still a mystery, authorities said. The probe into the Nov. 22, 2023, crash that killed Kurt and Monica Villani, […]

55 minutes ago

FILE - A long row of unsold 2021 X3 sports-utility vehicles sits at a BMW dealership Sunday, March ...

Associated Press

BMW recalls over 291,000 SUVs because interior cargo rails can detach in crash, raising injury risk

DETROIT (AP) — BMW is recalling more than 291,000 SUVs in the U.S. because the interior cargo rails can detach in a crash, increasing the risk of injury. The recall covers certain X3 SUVs from the 2018 through 2023 model years. The company says in documents posted by U.S. safety regulators that dealers will replace […]

1 hour ago

Associated Press

Authorities identify victims of fatal plane crash near the site of an air show in Wisconsin

NEKIMI, Wis. (AP) — A Pennsylvania man and a man from New York have been preliminarily identified as the victims of a fatal plane crash near the site of an airshow in eastern Wisconsin. The bodies of Sean Tommervik, 37, of Philadelphia, and James G. Sullivan, 32, of Brooklyn, were found Monday in the wreckage […]

2 hours ago

Associated Press

Fake protest set for TV shoot on NYC campus sparks real demonstration by pro-Palestinian activists

NEW YORK (AP) — A fake protest encampment set up for a TV shoot on a New York City college campus sparked a real reaction from pro-Palestinian activists, who organized their own demonstration against the filming, a newspaper reported Wednesday. The scenario unfolded Monday and Tuesday at Queens College, where the CBS drama “FBI: Most […]

2 hours ago

Lear production worker Abigail Fletcher rides her mini bike in support of the picket line as member...

Associated Press

Strike at plant that makes truck seats forces production stoppage for Missouri General Motors

Production has halted at a Missouri General Motors plant that manufactures trucks and vans, the result of a strike at the company that supplies seats for the vehicles. About 480 workers at Lear Corp. in Wentzville walked out at midnight Sunday. The strike brought production to a standstill Monday at the GM plant in Wentzville, […]

2 hours ago

FILE - Marion County Prosecutor Ryan Mears speaks at a press conference announcing that Raymond Ron...

Associated Press

Mistrial declared in case of Indiana man accused of fatally shooting five, including pregnant woman

INDIANAPOLIS (AP) — A judge declared a mistrial in the case of an Indianapolis man accused of fatally shooting five people, including a pregnant woman, after a witness verbally confronted the defendant in front of the jury. Marion County Superior Judge Chris Miller declared the mistrial Tuesday in the trial of Raymond Ronald Lee Childs […]

2 hours ago

Elizabeth Holmes objects to $250 monthly restitution payments proposed by government