Theranos founder, Elizabeth Holmes convicted of Fraud on four out of 11 federal charges
The former CEO and founder of failed blood-testing startup Theranos, Elizabeth Holmes was found guilty on four charges of fraud. She was convicted of conspiracy to defraud investors, as well as three wire fraud counts tied to specific investors.
She is facing up to 20 years in prison as well as a fine of $250,000 plus restitution for each count. She was found not guilty on three additional charges concerning defrauding patients and one charge of conspiracy to defraud patients.
Elizabeth Holmes’ firm, Theranos, at one point valued at $9 billion, was once the darling of Silicon Valley. Her firm promised it would revolutionize the healthcare industry. However, in 2015, Wall Street Journal reported that the core blood-testing technology of the firm did not work.
In her defense, Holmes acknowledged mistakes in Theranos' operation but denied knowingly defrauding investors. Holmes has accused Ramesh "Sunny" Balwani, Holmes' former business partner and long-term boyfriend, 19 years her senior, of emotional and sexual abuse - allegations he denies.
Margaret O'Mara, a historian of the tech industry and professor at the University of Washington said to CNN, "This is a verdict that should matter not just to Silicon Valley but to the people who celebrate it, invest in it and use its products. She was made possible by a Valley business culture that celebrated and encouraged very young, marginally experienced people.”