![]() ![]() For instance, prosecutors showed that Holmes relied on altered third-party machines, not the company's own proprietary devices, to conduct blood tests, which were often riddled with inaccuracies.ĭuring the trial, Holmes expressed regret and said she wished she had operated the company differently. Last January, Holmes was convicted of fraud and conspiracy for duping investors about technology that she boasted would revolutionize how blood testing is performed by testing for hundreds of conditions with just a pinprick of blood.īut the technology never worked as promised. District Judge Edward Davila, who presided over Holmes' trial, found that her appeal did not raise "substantial questions of law or fact," and that she should not be allowed to remain out on bail as she fights her conviction.īut Holmes' freedom is now in the hands of the Ninth Circuit. Prosecutors, meanwhile, wanted a 15-year prison sentence and $800 million in restitution.Technology Elizabeth Holmes verdict: Former Theranos CEO is found guilty on 4 countsĮarlier this month, U.S. For each count on which she was convicted, she faced up to 20 years in prison, a $250,000 fine, and a requirement to pay restitution to victims.Įarlier this month, her attorneys asked for a maximum sentence of 18 months, preferably under house arrest, submitting 130 letters from friends and family seeking leniency. All four counts related to investors' losses in Theranos the jury deadlocked on three counts relating to other investments, and Holmes was acquitted on all patient-related charges. ![]() Prosecutors called to the stand former Theranos employees who said they brought up testing issues to no avail, former investors and board members who recalled being won over by claims they now know were false, and patients who testified about receiving inaccurate test results.Īfter four months, Holmes was ultimately convicted on four of the 11 counts in January. During the trial, Holmes accused Balwani, who is 20 years her senior, of physical and emotional abuse, allegations his attorneys have denied. The defense argued that Holmes was in the dark about the company's many issues and attempted to shift the blame to other Theranos employees, especially Ramesh "Sunny" Balwani, her ex-boyfriend and former right-hand man at Theranos. In 2018, the Department of Justice announced that a federal grand jury had indicted Holmes with nine counts of wire fraud and two counts of conspiracy to commit wire fraud, and she stepped down as CEO. The Journal's reporting sparked investigations into Theranos from numerous federal agencies, including the FDA and the SEC. Holmes' empire began to collapse in 2015, when the Wall Street Journal published a damning exposé revealing Theranos machines could only perform a small fraction of the tests advertised and still produced inaccurate results for those, and the company was instead secretly using competitors' machines already on the market. Theranos was hailed as having the power to revolutionize healthcare and had an estimated $9 billion valuation at its peak. Holmes graced countless magazine covers and awards lists and was proclaimed a visionary, becoming the world's youngest self-made female billionaire, with a net worth of approximately $4.5 billion. During her meteoric rise to fame, she brought on former federal government officials, US senators, billionaire CEOs, and even an ex-CDC chief as investors and board members. At 19, Holmes dropped out of Stanford University to build Theranos, a blood-testing startup touted to be able to test for hundreds of diseases with a single drop of blood. The sentencing is the latest development in a years-long scandal that has gripped Silicon Valley. Account icon An icon in the shape of a person's head and shoulders. ![]()
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