Prosecutors said in their sentencing recommendation memo that the amount “may dwarf her ability to pay,” noting that her “modest assets” are outweighed by $450,000 in loans for her civil settlement with securities regulators and more than $30 million in liabilities for legal fees.
But the government also said the US Probation Office reported that Holmes’s family “appears to have substantial assets,” and that the former CEO “is managing her affairs to avoid subjecting their assets to any judgment in this case.”
Holmes said in Monday’s filing that her “financial condition should not come as a surprise.”
“The reason Ms. Holmes has essentially no assets is that she was barely an adult when she left Stanford to start the company, she received a regular salary and did not cash out her shares, she has been unable to work since 2018,” her lawyers wrote, adding that after she was indicted that year, she was unable to invest what assets she did have because her trading accounts were repeatedly closed by financial institutions.
‘Enforcement 40’ for 2020
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