Bonus: Sentenced

The 'Bonus: Sentenced' episode of 'The Dropout' podcast, narrated by Rebecca, captures a pivotal moment in the saga of Elizabeth Holmes, the founder of Theranos. The episode opens with the announcement of Holmes's sentencing, revealing that she has been sentenced to over eleven years in prison, amounting to 135 months, followed by three years of supervised release. The courtroom scene is described as emotional, with a visibly pregnant Holmes crying and embracing her family and partner Billy Evans after Judge Davila delivered the sentence.

Judge Davila characterized Holmes as a 'deep thinker' and acknowledged her unique position as a woman in a male-dominated industry. However, he emphasized that investors are entitled to take risks based on truth, not deceit and lies. Prior to the sentencing, Holmes addressed the court, expressing remorse and regret for her actions, apologizing to investors and patients, and expressing a desire to learn from her experiences. She quoted the poet Rumi, reflecting on her change in perspective from wanting to change the world to changing herself.

The episode also recounts the emotional testimony from Alex Schultz, the father of whistleblower Tyler Schultz and son of former Theranos board member George Schultz. Alex described the fear and intimidation his family faced, including his son sleeping with a knife under his pillow. He held Holmes accountable, rather than Sunny Balwani, for exploiting his father's vulnerability and using him to lend credibility to Theranos. The government pushed for a 15-year sentence and $800 million in restitution, while the defense argued for a significantly lighter sentence of 18 months, citing Holmes's lack of greed and the intense public scrutiny she faced.

The episode concludes with the legal process ahead, including the likelihood of an appeal by Holmes's team. Legal analyst Ellen Kreitzberg and criminal defense attorney Caroline Polisi provide insights into the appeal process and its potential duration. Despite the possibility of a delayed prison start date, it is suggested that Holmes is expected to serve the full sentence, as there is no parole in the federal system. Holmes has been ordered to surrender by April 27th of the following year, with the actual date of imprisonment depending on the appeal's progress.