[cheers and applause] >> announcer: this is "nightline." >> byron: tonight, behind bars. elizabeth holmes reports to federal person. the mother of two now facing 11 years for fraud. >> she is. >> she is going to be separated from her family, her children, her friends for many, many years and that may be the highest price a person can pay. >> byron: the stunning fall from grace. stanford dropout turned

self-made billionaire. >> we will change our lives and our world. >> byron: investors, doctors, and patients she duped along the way. >> i know that we've made so many mistakes. >> byron: what we are learning about her new life as an inmate. plus, the spirit of surfing. from surfing usa to point break. the clothes and culture on commercial. but now the growing movement of native hawaiians to reclaim the export. >> surfing, that is our church because that is where we spiritually can connect to something that was always there as native hawaiians. >> byron: with big money at stake. >> surfing is a 4 billion-dollar industry. how much of that benefit do you think hawaiians reap? >> zero. >> byron: and final performance. that retiring high school music teacher and 100 former students who showed up to sing his

praises. >> announcer: "nightline" we will be right back. ♪ ♪ ♪

♪ ♪ ♪ you can beat it! ♪ visit youcanbeatit.org or call 833-422-4255 to ask for medication to treat covid-19. ♪ ♪ >> byron: good evening. thank you for joining us. elizabeth holmes is bending her first night in prison as a federal inmate. it is a far cry from the big stage and bigger dollars.

they found her it was committing for products she said were revolutionizing medicine. what will her new legs look li like? here is abc's mike jarvis. >> reporter: elizabeth holmes is a master of transformation. from natural color struck out to self-made billionaire. to a broke but apparently devoted mother of two. today, she starts yet another transition. into a prison inmate. that once a loud and visionary reported to a federal all women's prison in bryan, texas. dropped off with her blonde hair and loose waves, wearing simple jeans and a tank top. outfit she will soon trade for a uniform. spent her life is going to be controlled. she is going to have to pick up after herself and take care of her jail cells and she is just probably in a way that she is not accustomed to. work for a woman who spent years crafting her image, this was a distinct change for homes. her parents and her partner

dropped her off. evans now responsible for the couple's two very young children. a son not yet two years old and a newborn daughter. the couple captured by the daily mail this holiday weekend. the new casual work carefully elizabeth holmes spreading her final days in san diego at the beach. the young family similarly trying to ignore the inevitable. >> people are -- as to new list homes. is this a new gimmick of hers? is she trying to rebrand herself in order to lessen the damage that she is going to be feeling when she is in prison? or is this really hurt? is she changing? >> reporter: instead of putting her children to sleep, she will be starting her new life in a room with two sets of bunk beds and no doors. with mattresses about as thick as the width of a hand. and she will still be required to work. >> nothing compares to the expense she is going to have on tuesday. she is going to make her bed. she is going to go to her job.

and she is going to repeat. every day. >> reporter: holmes catapulted onto the global stage back in 2013 with a promise to change the world. >> we will change our lives and our world. >> there is the next steve jobs. >> reporter: she introduced her company, a silicon valley startup. claiming it had devised technology to run tests of all kinds of diseases and health issues using just a few drops of blood. >> making it possible to do any lab test from the tiny drop of blood from a fingerprint. >> reporter: quickly holmes became a texas supernova. the ceo of her own company and industry milk self-made billionaire. her persona with that low smoky voice and steve jobs like black turtlenecks attacking front page features. >> blog post, videos, speech. >> reporter: holmes, that the . he was nearly 20 years older than holmes, a detail that would

become key at her trial. their nose became so successful it made it into anot worked. by 2016, the company was basically defunct. and holmes' personal net worth plummeting from 4 1/2 billion dollars to zero. expect i don't know specifically. i'm not sure. i don't know exactly. >> reporter: by 2017, holmes was being deposed as lawsuits started piling up. >> i know i have made so many mistakes. >> reporter: abc news did a deep dive. podcast and primetime special. later adapted into an emmy-winning series for hulu starting amanda seyfried. by 2018, the federal government

charge homes with a massive fraud. accusing them of engaging in a scheme to not just duped investors but doctors and patients, too. as holmes waited to stand trial, she met boyfriend billy evans. by 2020, the covid pandemic for the delayed the trial. then in 2021, it was delayed again after holmes announced she was pregnant with her first child. by the time the child finally started in late 2021, the media had grown. and holmes showed up with a totally different software look. long gone were her black turtlenecks, buns and red lipstick. she had also dropped that famous low voice. her defense strategy was also finally out in the open. >> the defense's position has been that elizabeth holmes had really high aspirations for herself and for this company, theranos. but that she fell short and that that is not a crime. she really had no ill intent.

>> reporter: during the trial, holmes testified that she was the victim of a long-term abusive relationship with balwani. she said he told me that i did not know what i was doing in business. that he was astonished at my mediocrity. that i needed to kill the person that i was to become a successful entrepreneur. >> frankly, some of the testimony that she gave was really, really shocking. i thought it was helped by exhibits of contemporary newn newness, today's notes she had taken on her iphone. >> reporter: she also accused balwani of domestic abuse and sexual assault. balwani 290 accusations and prosecutors painted a different picture saying holmes knowingly sold a picture perfect image of theranos to raise money while she knew the machines were not working. in january 2022, the jury found holmes guilty on four of the 11 charges. including defrauding investors. balwani was later found guilty in his own trial on 10 counts.

he is now serving 13 years in prison. it would take more than a year and a half to get to holmes' sentencing in part because the former superstars, superstar ceo announced she was expected baby never to. by november, she appeared in court visibly pregnant. she addressed the court in tears saying, i regret my feelings with every cell of my body. yesterday, i wanted to change the world. today, i want to change myself. her team submitted more than 100 letters support from her parents, partner, and others, including senator cory booker. >> people still support her because they believe in who she could have been. and i think to some degree, it is also deciding -- this idea of her gender played a role in this because the idea of fake it until you make it in silicon valley happens everyday but i think for many people who still

support her, they see that this person that singled out of all the others and they believe it is unfair for a number of reasons. >> reporter: ultimately, the federal judge handed down 11 years in federal person. holmes was also ordered along with balwani to pay more than $452 million in restitution to investors including rupert murdoch and the divorce family. while her team appealed, holmes managed to postpone the statement she had to report to prison. instead, staying in san diego with her children and evans, a hotel heir. often caught on camera by the daily mail blending into the suburban community. >> no matter what, she argues have been, the result is that she is going to be separated from her family, her children, her friends, for many, many years. and that maybe the highest price a person can pay. >> reporter: she also gave a rare interview to "the new york times" where she says she is still working on healthcare

inventions, saying "i still dream about being able to contribute in. i still feel the same calling to it as i always did, and i still think the need is there." but as of today, her new home is that federal person camp in bryan, texas, where she will join fellow high-profile inmate jen shaw, the real housewife of salt lake city also serving time for fraud. recent photos capturing the reality star's new look. in the prisons all khaki unif uniform. holmes, like shaw and everyone else here will have a job. like -- likely starting in the kitchen. inmates make between 12 cents and $8.15 an hour. experts say have the small sum holmes will turn, about $25 every four months, will go towards paying back the investors she defrauded. >> the victims may get some money. but the entirety of what they are old, i would say they should not be holding their breath.

it is going to be it's truly difficult for elizabeth holmes to get anywhere near the amount that is owed to these individuals. >> reporter: for now, elizabeth holmes' fall from grace is complete. the question, will this become the start of a road to redemption? >> byron: our thanks to rebecca. up next, the growing movement among native hawaiians to reclaim the roots of surfing. ♪ ♪ narrator: the man with the troublesome hemorrhoid enters the room. phil: excuse me? hillary: that wasn't me. narrator: said hillary, who's only taken 347 steps today. hillary: i cycled here. narrator: speaking of cycles, mary's period is due to start in three days. mary: how do they know so much about us? narrator: your all sharing health data without realizing it. that's how i know about kevin's rash. who's next? wait... what's that in your hand? no, no, stop! oh you're no fun. [lock clicks shut] my most important kitchen tool?

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♪ ♪ >> byron: surfing has a history

in heritage in hawaii, revered by many in spiritual terms. but then along came hollywood. and then everyone is ready to ride their culture waves. here is abc's becky worley. ♪ ♪ >> surfing, that is outrage because that is where we spiritually can connect to something that was always there as native hawaiians. i feel connected to my answers. i feel connected to my culture, like, our culture goes way beyond just language. >> can say she was born with surfing in her blood. her grandfather, was a surfing legend. her first memory of surfing is being on a board with him. >> since we were babies, before we could call -- walk, we were here in the water. my grandfather was just always ate water man. he was raised in a time where a

lot of culture, taken away. you were not allowed to speak our language. and sometimes some people cannot even hula dance. and so that got lost but i think naturally, he just always connected to his culture through being a water man in the ocean. >> reporter: the 26th row represents a growing movement of native hawaiians reclaim the spirit of surfing that they say has been co-opted by pop-culture and commercial -- commercialize. we were always raised to know that the ocean is respected like an elder. in hollywood, surfing has been portrayed as california cole baglio talk about films like point break and surfer dude. >> on a surfer dude. >> reporter: or music like the beach boys hit song surfing usa. ♪ everybody be surfing like california ♪ >> reporter: from western explorers back in the 17 and 1800s showed a surfing traces its roots all the way back to ancient hawaii. >> you have the documentation of

the westerners arriving in the late 1700s and they were amazed by these things. these accounts where people would do these death-defying acts on these pieces of wood in ways that sailors were to find of, the waterman of the west would never attempt and these are young women doing it and just blew their minds literally. >> reporter: the carrier did those curators in honolulu bringing out precious artifacts like ports that weigh over 100 pounds or this one from the 1700s. aspects of this board is possibly the oldest board -- >> so this part is possibly the oldest board in the world. >> reporter: the arrival of westerners challenged native -- native indigenous culture. and then surfing twiddled until this man came along. over 100 years later. native hawaiian was a three-time swimming champion in the 1912 and 1920 olympics loading hawaii and surfing while traveling the globe. how do you perceive the

importance? >> he was the fastest man in the water. he was the michael phelps of his time. he was also an avid surfer in a time when there was not a lot of surfing happening in hawaii. >> reporter: now millions serve and millions more buy into surfing culture. the lifestyle to the clothing associated with the sport. ♪ ♪ like quicksilver. >> the ocean is part of our heritage, part of our culture, part of our tradition. >> reporter: he is modern hawaiian surfing royalty. he and his late brother saved hundreds in the 1960s as the first lifeguards. >> he was just the brightest star out there. his story told in this espn 30 for 30 documentary hawaiian, the legend of eddie ical. he was lost at sea trying to save his friends after their voyaging canoe capsized in the

open ocean. >> to save someone's life and put your life in jeopardy is what eddie did. we never lost one person in 10 years. we do not have any jet skis. all we had was fans and a surfboard. >> reporter: the surfing legend still honored with the iconic eddie aikau big wave invitational. >> we go for we go for a piece of mind. of us, it is always been someplace sacred. >> reporter: he says it is a culture that is now big busin business. >> from a cultural tradition of surfing going back hundreds and hundreds of years to our realty, fast forward to today, 2023, has been turning into a make money deal. >> reporter: surfing is estimated to be over a 4 billion-dollar industry. how much of that benefit do you think hawaiians reap?

>> zero. zero. spoke about some hawaiians are riding the wave of surfing's future. >> chris moore. >> reporter: debut in the tokyo 2020 olympics. carissa more taking home the gold. she is now taking her place next to duke in surfing history and inspiring a new generation. >> it was the native hawaiians that brought home the gold and we are so proud of her. as people share this amazing sport with the world, the spiritual connection to hawaii office history is not lost. >> reporter: as a native hawaiian, i think being in the water whether it be diving, surfing, sailing, anything in the water, that is me connecting to my people. and our culture >> byron: our thanks to beki. up next, the beloved high school

teacher, former students who came together for one stirring final performance. ♪ ♪ mr. clean magic eraser powers through tough messes. so it makes it look like i spent hours cleaning, and you know i didn't. it makes my running shoe look like new! it's amazing. it's so good. it makes it look like i have magical powers. magic eraser and sheets make cleaning look easy. age is just a number, and mine's unlisted.

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♪ ♪ >> byron: and finally tonight, a song of praise for the above educator. here is abc's david we are. ♪ ♪ >> reporter: deb stanley is a music teacher in cartersville, georgia. he first walked into the school 28 years ago. now comes retirement. he started asking some of his

former students if they would like to gather for one final performance. but he had no idea generations would show up. ♪ ♪ [singing] >> reporter: nearly 100 alumni all singing together, all for mr. stanley. >> i think about mr. stanley. i think about the word impactful. >> he changed all of our lives. >> is brilliant than. he is brilliant now and he forever will be brilliant brooks. i think it was a special >> byron: a great teacher can change the world because they can change students. our thanks to david. and our congratulations to mr. stanley. that is "nightline" for this evening. catch our full episodes on