“A jury on Monday found Elizabeth Holmes, the former CEO and founder of failed blood-testing startup Theranos, guilty on four of 11 federal charges related to fraud and conspiracy.
Holmes and Ramesh “Sunny” Balwani, the former president and chief operating officer of Theranos, were indicted in 2018 after prosecutors alleged that they knew that the company’s proprietary blood analyzer couldn’t consistently produce accurate and reliable results for certain tests but claimed that it was more accurate and reliable than traditional testing methods.
Prosecutors claimed that Holmes and Balwani—who were romantically involved at the time—misled doctors and investors, as well as patients who purchased the blood tests at Walgreens.
Holmes’ trial began in August, and after seven days of deliberations, jurors found her guilty of one count of conspiracy to defraud investors and three counts of wire fraud that were connected to individual investors. She faces up to 20 years in prison and a fine of $250,000 plus restitution for each of the four counts.
The jury found Holmes not guilty on three charges related to defrauding patients and one charge of conspiracy to defraud patients. It could not reach a verdict on three other counts of wire fraud related to specific investors.
According to CNN, U.S. Attorney Stephanie Hinds of the Northern District of California said in a statement read outside the federal courthouse in San Jose, California, “the guilty verdicts in this case reflect Ms. Holmes’ culpability in this large-scale investor fraud, and she must now face sentencing for her crimes.”
This article was originally posted in the ABA Journal.