Lawyers for disgraced tech CEO Elizabeth Holmes are objecting to a government request that their client pay $250 a month to victims of her crimes.
Prosecutors want Holmes to pay at least the $250 to those she wronged after she is released under supervision. She could also pay 10% of her wages, whichever amount would be more.
Holmes’ attorneys said in a new filing that no legal precedent exists for such a payment plan. Yet they didn’t object to a proposal that she pay $25 a quarter while she is incarcerated.
When she was convicted last year, she and her former Theranos chief operating officer, Ramesh “Sunny” Balwani, were ordered to pay $452 million in restitution to her victims.
Holmes reported to federal prison in Texas in May to serve out her 11-year sentence. She was convicted on fraud charges for claims she made during her time as CEO of Theranos, a blood testing startup. Her false claims about the blood-testing technology misled dozens of high-profile investors and led to the company being valued at over $9 billion.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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