Former Theranos CEO Elizabeth Holmes found guilty on four fraud charges
Former Theranos Inc. Chief Executive Officer Elizabeth Holmes was found guilty today on four of the 11 counts she was being tried on, putting an end to one of the most sordid and downright strange tales of venture capital-funded tech startups to date.
The tale of Theranos is a long one. Founded in Palo Alto in 2003, Theranos was at one point the poster child of upcoming tech companies. Theranos promised to revolutionize health through blood tests that only required a very small amount of blood, which then could be tested rapidly using small automated devices.
The Theranos blood-testing devices were often compared to medical testing “tricorder” devices shown in “Star Trek.” Perhaps sadly, there was one commonality between them: Both were pure science fiction.
Holmes (pictured) was found guilty on four charges, two charges of wire fraud and two of conspiracy to commit fraud. Arguably, she got off lightly, having initially been charged with 11 counts.
On the other counts, the jury delivered a split decision on three counts and acquitted her of four counts.
At her peak, Holmes was a media darling. An attractive blonde, blue-eyed woman, she was promoted for a long time by the sycophant media as the next revolution in medicine. Bringing to practice what some had grown up watching on “Star Trek,” was a fantastic idea, but with Theranos, it was complete fiction.
As it turned out, the only thing Elizabeth Holmes was good at was defrauding investors. She never blinks — and that’s not a saying, since she actually never does.
Coming into the trial, Holes blamed former Theranos Chief Operating Office Sunny Balwani for the outright fraud. Yahoo News notes that Holmes’ attorneys argued that Balwani “controlled what she ate, how she dressed, how much money she could spend, [and] who she could interact with.” She also claimed the same when she testified at her trial.
The jury didn’t buy the claim. Holmes is facing up to 20 years in jail for each count for which she was found guilty.
Photo: Fortune/Flickr
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