Elizabeth Holmes speaks onstage during the closing session of the 2015 Clinton Global Initiative on September 29, 2015 in New York City. Photo: JP Yim (Getty Images)
Elizabeth Holmes, the founder of blood-testing startup Theranos, will go down in history as the female entrepreneur who took Silicon Valley by storm, spoke a smooth game and put a financial disaster behind her. On Monday, a California jury added another line to the biography: a business executive guilty of so many crimes.
After days of deliberation, jurors convicted Holmes on four of the eleven counts she was accused of. All the guilty counts were related to wire fraud or conspiracy to commit wire fraud against Theranos investors, who invested hundreds of millions of dollars to support the small, wearable medical devices the company claimed could perform countless medical tests on a single drop of patients’ blood. . The problem was that the devices did not work.
Holmes’ trial started in August after her lawyers spent years working on clear the charge against her. In particular, the jury rejected allegations that Holmes had colluded or committed telephone fraud against Theranos’ paying patients, and found her not guilty on the four counts related to the case. It was unable to rule on three other cases of wire fraud against investors.
The decisions of the jury on all points, reported by the Wall Street Journal, you can view below:
1. Conspiracy to Fraud Against Theranos Investors: Guilty
2. Conspiracy to Commit Telefraud Against Paying Patients of Theranos: Not Guilty
3. Wiring Fraud Against Theranos Investors: Alan Jay Eisenman’s $99,990 Wire Transfer: No Judgment
4. Defrauding Theranos Investors: Transfer of $5,349,900 from Black Diamond Ventures: No Verdict
5. Fraud Against Theranos Investors: Transfer of $4,875,000 from Hall Phoenix Inwood Ltd.: No Verdict
6. Deception Against Theranos Investors: Transfer of $38,336,632 from PFM Healthcare Master Fund: Guilty
7. Wiring Fraud Against Theranos Investors: Wire Transfer of $99,999,984 from Lakeshore Capital Management LP: Guilty
8. Cheating on Theranos Investors: $5,999,997 Wire Transfer from Mosley Family Holdings LLC: Guilty
9. Phone fraud against paying patients of Theranos: transfer of blood test results from patient ET: not guilty
10. Phone fraud against paying Theranos patients: transfer of ME blood test results from patient: not guilty
11. Wire Fraud Against Paying Patients of Theranos: Wire Transfer of $1,126,661 Used to Buy Ads for Theranos Wellness Centers: Not Guilty
In her defense, Holmes’ attorneys said investors should have done more research into Theranos, and more importantly, the CEO’s failures no crime. Holmes repeated the latter when she testified, saying that she believed what the people who ran Theranos’ labs told her. She claimed that she believed the company’s product worked and that she wanted to talk about what the company could achieve in the future.
“I wanted to talk about what this company could do in a year, in five years, in ten years,” Holmes said. New York Times. “I wanted to talk about what was possible.”
Holmes’ testimony also included allegations against Sunny Balwani, Theranos’ chief operating officer, and her ex-boyfriend, who she said had abused her emotionally and sexually. Holmes said Balwani, whom she secretly dated for over 10 years, had controlled every part of her life, including her schedule, self-presentation and time with her family. She also stated that Balwani, who is 20 years her senior, forced her to have sex with him.
Balwani has denied Holmes’ allegations. He is also charged with fraud and pleads innocent.
Each guilty charge carries a maximum prison term of 20 years, which is likely to be served concurrently. Holmes is expected to appeal.
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