Elizabeth Holmes is going to prison. Will she ever pay victims too? – BBC

Getty ImagesBy Madeline HalpertBBC News, New YorkAfter several failed attempts to delay her time behind bars, Theranos founder Elizabeth Holmes is set to report to federal prison this week.The disgraced entrepreneur was sentenced to over 11 years in prison and ordered to pay $452m (£365m) with her former business partner Sunny Balwani to dozens of high-profile investors they defrauded through a blood-testing start-up. It’s a sizeable bill for the former billionaire, who has claimed she does not even have enough money to pay her lawyers. In US federal court, convicted offenders are sometimes ordered to pay restitution.This is a reimbursement to victims for lost income, property damage, medical expenses or other financial costs related to the crime. In Holmes’ case, she has been ordered to pay back some of the wealthiest families in America. After dropping out of Stanford University, she recruited several famous figures to raise money for Theranos, valued at $9bn at its peak. Donors included former Secretary of State Henry Kissinger and the Walton family, known for founding American supermarket chain Walmart. But after it was revealed her blood-testing technology did not work, many lost a fortune. From tech star to convicted fraudsterFormer Secretary of Education Betsy DeVos reportedly gave Holmes $100m while the Theranos founder has been ordered to pay back media mogul Rupert Murdoch $125m, according to court documents. She will not be able to just declare bankruptcy and shed her debts that way, experts tell the BBC. But victims of her crimes should not get their hopes up about recouping their cash.They say restitution in the US has become largely symbolic, meaning Holmes’ investors – and many less wealthy victims of fraud – are unlikely to get most of the money they are owed. Reuters”There are very few people – the Bernie Madoffs of the world and everyone else – that can pay the full amount of criminal restitution,” says Ryan O’Neill, a former federal prosecutor. “It’s sort of a fake number.”Holmes will still be expected to try to pay these people and others she defrauded, she adds. Prosecutors have probably already begun to seize her assets, including money in the bank and properties. They will compare their own accounts of how much money she has to what she claims she possesses, which could lead to disputes, Ms O’Neill said. The Theranos founder’s debts won’t pause when she sets foot behind bars. A judge has recommended Holmes report to Federal Prison Camp in Bryan, Texas, where all inmates are obligated to work and make between 12 cents and $1.15 an hour. Inside the routine at Elizabeth Holmes’ prisonHalf of the small sum she earns – usually around $25 every four months – will go to her victims, said Randy Zelin, a professor at Cornell Law School. Once her time in prison is finished, she will still not be able to purchase any large assets, including a home, without intervention from the federal government. The government can’t, however, seize assets owned solely by her husband, hotel heir William Evans. Holmes has acknowledged her dismal financial fate, telling the New York Times this month she will “have to work for the rest of my life” just to pay millions of dollars in legal fees. But there are a number of reasons why her victims and many others are unlikely to get the money back. Criminal defendants don’t have an incentive to “make it rich” again, said Ms O’Neill. “They know where the money is going to go.” Others may attempt to hide assets. University of Michigan Law School professor John Pottow says some try to put money in trusts to avoid asset seizures. “The richer you get, the easier it is to construct legal devices that hide your wealth.” Experts pointed to the case of conspiracy theorist Alex Jones, who has been ordered to pay nearly $1.5bn to families of victims of the Sandy Hook Elementary School shooting for spreading lies about the massacre, which they said has led to harassment. Getty ImagesMr Jones – who has declared both personal and business bankruptcy – has been accused of funnelling money to friends and family in an attempt to hide his assets. Ms O’Neill said that although prosecutors will be tracking Mr Jones’ moves, the Sandy Hook families – who are not as wealthy as the victims of Holmes – are unlikely to receive much money from the right-wing InfoWars host, whom she said will be paying most of his funds to his lawyers. In lower profile cases, the US government does not have the resources or the time to investigate every defendant’s assets, sometimes putting the onus on victims to track their financial moves, Mr Zelin said. But the headline-making nature of Holmes’ fraud – as well as her recent financial choices, including living in a $13,000 a month Silicon Valley estate – means former Theranos investors are more likely to keep watch over her and push prosecutors to get them their money back, experts said. “They’re not going to stop looking,” Ms O’Neill said. “She’s not going to be able to put a dollar in her bank account… without the government seizing it.”Related TopicsTheranos trialTexasFraudUnited States

Elizabeth Holmes alongside her boyfriend Billy Evans, walks back to her hotel following a hearing at the Robert E. Peckham U.S. Courthouse on March 17, 2023

By Madeline Halpert

BBC News, New York

After several failed attempts to delay her time behind bars, Theranos founder Elizabeth Holmes is set to report to federal prison this week.

The disgraced entrepreneur was sentenced to over 11 years in prison and ordered to pay $452m (£365m) with her former business partner Sunny Balwani to dozens of high-profile investors they defrauded through a blood-testing start-up.

It’s a sizeable bill for the former billionaire, who has claimed she does not even have enough money to pay her lawyers.

In US federal court, convicted offenders are sometimes ordered to pay restitution.

This is a reimbursement to victims for lost income, property damage, medical expenses or other financial costs related to the crime.

In Holmes’ case, she has been ordered to pay back some of the wealthiest families in America.

After dropping out of Stanford University, she recruited several famous figures to raise money for Theranos, valued at $9bn at its peak.

Donors included former Secretary of State Henry Kissinger and the Walton family, known for founding American supermarket chain Walmart.

But after it was revealed her blood-testing technology did not work, many lost a fortune.

From tech star to convicted fraudster

Former Secretary of Education Betsy DeVos reportedly gave Holmes $100m while the Theranos founder has been ordered to pay back media mogul Rupert Murdoch $125m, according to court documents.

She will not be able to just declare bankruptcy and shed her debts that way, experts tell the BBC. But victims of her crimes should not get their hopes up about recouping their cash.

They say restitution in the US has become largely symbolic, meaning Holmes’ investors – and many less wealthy victims of fraud – are unlikely to get most of the money they are owed.

Elizabeth Holmes becomes emotional in court (sketch)

“There are very few people – the Bernie Madoffs of the world and everyone else – that can pay the full amount of criminal restitution,” says Ryan O’Neill, a former federal prosecutor. “It’s sort of a fake number.”

Holmes will still be expected to try to pay these people and others she defrauded, she adds. Prosecutors have probably already begun to seize her assets, including money in the bank and properties. They will compare their own accounts of how much money she has to what she claims she possesses, which could lead to disputes, Ms O’Neill said.

The Theranos founder’s debts won’t pause when she sets foot behind bars.

A judge has recommended Holmes report to Federal Prison Camp in Bryan, Texas, where all inmates are obligated to work and make between 12 cents and $1.15 an hour.

Inside the routine at Elizabeth Holmes’ prison

Half of the small sum she earns – usually around $25 every four months – will go to her victims, said Randy Zelin, a professor at Cornell Law School.

Once her time in prison is finished, she will still not be able to purchase any large assets, including a home, without intervention from the federal government. The government can’t, however, seize assets owned solely by her husband, hotel heir William Evans.

Holmes has acknowledged her dismal financial fate, telling the New York Times this month she will “have to work for the rest of my life” just to pay millions of dollars in legal fees.

But there are a number of reasons why her victims and many others are unlikely to get the money back.

Criminal defendants don’t have an incentive to “make it rich” again, said Ms O’Neill. “They know where the money is going to go.”

Others may attempt to hide assets. University of Michigan Law School professor John Pottow says some try to put money in trusts to avoid asset seizures. “The richer you get, the easier it is to construct legal devices that hide your wealth.”

Experts pointed to the case of conspiracy theorist Alex Jones, who has been ordered to pay nearly $1.5bn to families of victims of the Sandy Hook Elementary School shooting for spreading lies about the massacre, which they said has led to harassment.

Mr Jones – who has declared both personal and business bankruptcy – has been accused of funnelling money to friends and family in an attempt to hide his assets.

Ms O’Neill said that although prosecutors will be tracking Mr Jones’ moves, the Sandy Hook families – who are not as wealthy as the victims of Holmes – are unlikely to receive much money from the right-wing InfoWars host, whom she said will be paying most of his funds to his lawyers.

In lower profile cases, the US government does not have the resources or the time to investigate every defendant’s assets, sometimes putting the onus on victims to track their financial moves, Mr Zelin said.

But the headline-making nature of Holmes’ fraud – as well as her recent financial choices, including living in a $13,000 a month Silicon Valley estate – means former Theranos investors are more likely to keep watch over her and push prosecutors to get them their money back, experts said.

“They’re not going to stop looking,” Ms O’Neill said. “She’s not going to be able to put a dollar in her bank account… without the government seizing it.”

Mozambique peace agreement signed – The Herald

Mozambique peace agreement signed

The Herald, October 5, 1992
MOZAMBICAN President Joaquim Chissano and MNR leader Mr Afonso Dhlakama yesterday signed the long-awaited peace treaty to end 16 years of armed conflict that has devastated their country and killed more than one million people.
The seven-point agreement comes into effect as soon as it is ratified by the Mozambican parliament, most likely this week. However, the formal ceasefire to be monitored by the United Nations could take up to 60 more days to negotiate although the date is expected to be set soon after the ratification.
Doubts still linger over the treaty’s effectiveness with the MNR’s track record on past agreements and the problems the movement admits it has in controlling all its fighters. The treaty includes the following points:
Within a month of ratification, all government troops must gather in 29 assembly points and all MNR combatants in 20 such points. UN peace-keepers will distribute food at these points as an incentive.
All Zimbabwean troops must withdraw from the Beira and Limpopo corridors within a month of ratification.
All weapons must be handed over to the United Nations. The disbandment of all armed groups must be complete within six months.
A new armed forces of 15 000 to 50 000 men will be set up with the men drawn equally from both the present government and MNR forces.
Both parties will respect political rights and guarantee the personal security of all Mozambican citizens.
The Mozambican parliament will be asked to adopt as law the protocols and guarantees agreed to yesterday as well as the peace agreement itself.
The government will not act contrary to the protocols and will not apply existing laws that are contrary to the peace protocols.
The MNR will respect the conditions and guarantees in the agreement. It will stop fighting after the ceasefire is in effect and will conduct its political campaigns within the framework of the law.
The international community and, in particular, the United Nations, will be asked to monitor the peace process and the first Mozambican multi-party elections.
A conference of major aid donors is to be called within the coming month.
It is expected that movement into assembly points will start within a week of ratification and that the withdrawal of the Zimbabwean forces will start at the same time. The logjam was broken on August 7 after personal diplomacy by President Mugabe, the leader of the neighbour with the most to gain from peace in Mozambique.
Mr Dhlakama dropped a bombshell on Monday last week when he announced he would not sign the deal. President Chissano and Cde Mugabe were already on their way to Rome. – Ziana-Reuter-Herald Reporter.
LESSONS FOR TODAY

Armed conflicts are a bane affecting the world especially the African continent, because of the devastating effects that they bring such as deaths and injury of millions of people. They also cause displacements and hinder development.
The 16 year-old armed conflict did not only affect Mozambique but also had a huge impact on Zimbabwe, which relies on Mozambican ports such as Beira for its fuel imports.
A good turn deserves another. Mozambique was very instrumental in ensuring that Zimbabwe gets independence and Zimbabwe returned the favour by playing a major part in mediating to end the armed civil war in that country.

Mozambique peace agreement signed

The Herald, October 5, 1992

MOZAMBICAN President Joaquim Chissano and MNR leader Mr Afonso Dhlakama yesterday signed the long-awaited peace treaty to end 16 years of armed conflict that has devastated their country and killed more than one million people.

The seven-point agreement comes into effect as soon as it is ratified by the Mozambican parliament, most likely this week. However, the formal ceasefire to be monitored by the United Nations could take up to 60 more days to negotiate although the date is expected to be set soon after the ratification.

Doubts still linger over the treaty’s effectiveness with the MNR’s track record on past agreements and the problems the movement admits it has in controlling all its fighters. The treaty includes the following points:

Within a month of ratification, all government troops must gather in 29 assembly points and all MNR combatants in 20 such points. UN peace-keepers will distribute food at these points as an incentive.

All Zimbabwean troops must withdraw from the Beira and Limpopo corridors within a month of ratification.

All weapons must be handed over to the United Nations. The disbandment of all armed groups must be complete within six months.

A new armed forces of 15 000 to 50 000 men will be set up with the men drawn equally from both the present government and MNR forces.

Both parties will respect political rights and guarantee the personal security of all Mozambican citizens.

The Mozambican parliament will be asked to adopt as law the protocols and guarantees agreed to yesterday as well as the peace agreement itself.

The government will not act contrary to the protocols and will not apply existing laws that are contrary to the peace protocols.

The MNR will respect the conditions and guarantees in the agreement. It will stop fighting after the ceasefire is in effect and will conduct its political campaigns within the framework of the law.

The international community and, in particular, the United Nations, will be asked to monitor the peace process and the first Mozambican multi-party elections.

A conference of major aid donors is to be called within the coming month.

It is expected that movement into assembly points will start within a week of ratification and that the withdrawal of the Zimbabwean forces will start at the same time. The logjam was broken on August 7 after personal diplomacy by President Mugabe, the leader of the neighbour with the most to gain from peace in Mozambique.

Mr Dhlakama dropped a bombshell on Monday last week when he announced he would not sign the deal. President Chissano and Cde Mugabe were already on their way to Rome. – Ziana-Reuter-Herald Reporter.

LESSONS FOR TODAY

Armed conflicts are a bane affecting the world especially the African continent, because of the devastating effects that they bring such as deaths and injury of millions of people. They also cause displacements and hinder development.
The 16 year-old armed conflict did not only affect Mozambique but also had a huge impact on Zimbabwe, which relies on Mozambican ports such as Beira for its fuel imports.
A good turn deserves another. Mozambique was very instrumental in ensuring that Zimbabwe gets independence and Zimbabwe returned the favour by playing a major part in mediating to end the armed civil war in that country.

Southern Africa

2 Zinara officials bypass system, install own ‘gates’ – The Herald

2 Zinara officials bypass system, install own ‘gates’

Yeukai Karengezeka Court Correspondent

TWO Zimbabwe National Road Administration (Zinara) revenue clerks yesterday appeared in court for allegedly installing a boom override system illegally and collecting money for their personal use.

Tariro Mhuka (26) and Henderson Msowa (39) appeared before Harare regional magistrate Mrs Marehwanazvo Gofa facing fraud charges.

They were granted US$200 bail each and remanded to November 30.

Zinara is the complainant, represented by its risk and loss control manager, Mr Tawanda Marenga.

The two were operating from Zinara’s Eskbank Tollgate along the Harare-Bindura highway.

Some of their duties included collection of revenue from the motoring public and remitting the collected revenue to the senior revenue clerk at the close of business.

Prosecuting, Mr Pardon Dziva alleged that on July 18, the two connived to steal from Zinara using a 10-10 Technologies (Private) Limited information system.

The company, 10-10 Technologies, is the system provider for Zinara.

Mhuka and Msowa were allegedly working together with other Zinara employees, who have since been arrested and arraigned before the court.

Others are still at large.

It is understood that after the installation of the illegal system that would bypass the normal operating system, the suspects collectively received tolling funds from the motoring public, purporting that the funds would be channelled to Zinara, when in fact they would convert the funds to their own use.

The court heard on July 20, the Zinara risk and loss control department discovered the offence through CCTV footage, prompting them to report the matter to the police.

Investigations were instituted and it was established that the boom override installations were fitted without the knowledge and consent of Zinara and also without the knowledge of 10-10 Technologies.

On July 26, a team from CID Commercial Crimes went to 10-10 Technologies and they confirmed that they had not authorised the installation of the boom override system at the Eskbank Tollgate.

The State also has CCTV footage showing Mhuka and Msowa committing the crime.

Zinara is yet to establish the total prejudice, and so far, nothing has been recovered.

Southern Africa

2 Zinara officials bypass system, install own ‘gates’ – The Herald

2 Zinara officials bypass system, install own ‘gates’

Yeukai Karengezeka Court Correspondent
TWO Zimbabwe National Road Administration (Zinara) revenue clerks yesterday appeared in court for allegedly installing a boom override system illegally and collecting money for their personal use.
Tariro Mhuka (26) and Henderson Msowa (39) appeared before Harare regional magistrate Mrs Marehwanazvo Gofa facing fraud charges.
They were granted US$200 bail each and remanded to November 30.
Zinara is the complainant, represented by its risk and loss control manager, Mr Tawanda Marenga.
The two were operating from Zinara’s Eskbank Tollgate along the Harare-Bindura highway.
Some of their duties included collection of revenue from the motoring public and remitting the collected revenue to the senior revenue clerk at the close of business.
Prosecuting, Mr Pardon Dziva alleged that on July 18, the two connived to steal from Zinara using a 10-10 Technologies (Private) Limited information system.
The company, 10-10 Technologies, is the system provider for Zinara.
Mhuka and Msowa were allegedly working together with other Zinara employees, who have since been arrested and arraigned before the court.
Others are still at large.
It is understood that after the installation of the illegal system that would bypass the normal operating system, the suspects collectively received tolling funds from the motoring public, purporting that the funds would be channelled to Zinara, when in fact they would convert the funds to their own use.
The court heard on July 20, the Zinara risk and loss control department discovered the offence through CCTV footage, prompting them to report the matter to the police.
Investigations were instituted and it was established that the boom override installations were fitted without the knowledge and consent of Zinara and also without the knowledge of 10-10 Technologies.
On July 26, a team from CID Commercial Crimes went to 10-10 Technologies and they confirmed that they had not authorised the installation of the boom override system at the Eskbank Tollgate.
The State also has CCTV footage showing Mhuka and Msowa committing the crime.
Zinara is yet to establish the total prejudice, and so far, nothing has been recovered.