Elizabeth Holmes CEO of Theranos found guilty on multiple charges in criminal fraud trial
“SAN JOSE, Calif. — Theranos founder Elizabeth Holmes, the one-time billionaire and darling of Silicon Valley who promised a revolutionary blood-testing technology, has been found guilty of four charges in her criminal fraud trial.”
Elizabeth Holmes could be facing up to 20 years in prison for “one count of conspiracy to commit wire fraud and three counts of wire fraud against specific investors.” CNBC
Theranos Former CEO Elizabeth Holmes Background:
“On June 15, 2018, Department of Justice release Theranos Founder Elizabeth Holmes and former Chief Operating Officer Charged In Alleged Wire Fraud Schemes.”
“Holmes, 34, of Los Altos Hills, Calif., founded Theranos in 2003. Theranos is a private health care and life sciences company with the stated mission to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data. Balwani, 53, of Atherton, Calif., was employed at Theranos from September of 2009 through 2016. At times during that period, Balwani worked in several capacities including as a member of the company’s board of directors, as its president, and as its chief operating officer. According to the indictment, Holmes and Balwani used advertisements and solicitations to encourage and induce doctors and patients to use Theranos’s blood testing laboratory services, even though the defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests. The tests performed on Theranos technology, in addition, were likely to contain inaccurate and unreliable results. ”
“The indictment charges each defendant with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and nine counts of wire fraud, in violation of 18 U.S.C. § 1343. If convicted, the defendants face a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of wire fraud and for each conspiracy count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. “
