Former Theranos CEO Elizabeth Holmes Found Guilty in Fraud Trial- Charges Explained
3 min read
Recently a fraud has been done by the founder of a health technology company, Theranos. Elizabeth Holmes was arrested for defrauding investors, doctors, and patients. After investigation, Elizabeth, the founder of Theranos, is found guilty of her crimes. The fraud trial began on 31st August 2021 And finally, it came to an end on 3rd January 2022.
For concluding the case and offering the final verdict, eight men and four women gathered as the jury in the court, on Monday. The Jury decided to declare Elizabeth Holmes guilty after hearing from 30 witnesses, three months of proceedings, and a week of deliberations.
What was the case?
As per sources, Elizabeth Holmes was arrested for committing 11 fraud. She also made false claims related to her company’s technologies i.e., Theranos, and did not reveal its shortcoming.
Four charges were imposed on her by the patients For which she was declared not guilty. But for the other four charges by the investors, she was found guilty. The remaining three charges made the jury members deadlocked, the report says. On this matter, Judge Edward Davila declared a mistrial.
Ramesh Balwani aka Sunny, the U.S. President and Chief Operating Officer of Theranos, has been charged with the same legal counts that of Elizabeth.
As per sources, some information is received from the U.S Department of Justice that states, Elizabeth Holmes and Ramesh Balwani were doing fraud with the investors, doctors, and patients with their multi-million-dollar scheme. They were claiming that advanced technology is being used in Theranos, which was totally fake.
Charges Against Elizabeth Holmes and Ramesh Balwani
US attorney’s office for the Northern District of California has done two years of investigation for proving Elizabeth Holmes and Ramesh Balwani guilty for their crime. As per sources, in June 2018, Elizabeth Holmes and Ramesh Balwani were charged with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.
After the investigation, prosecutors proved in the court that Elizabeth and Ramesh Balwani were involved in committing two crimes. One was defrauding the investors and another was for defrauding doctors and patients. But due to the pandemic, their fraud trial was delayed several times. During this time, Elizabeth Holmes was pregnant therefore the trial began again in Aug 2021.
Three counts received no verdict and were therefore their retrial was scheduled for the next Monday. Currently, Elizabeth Holmes has received bail but there are chances that she will be sentenced to 20 years imprisonment along with a fine of $250 million.
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khushi kanchan
Khushi Kanchan is a content writer, from India, who is pursuing a bachelor's degree in commerce. She has earned experience in writing for technological, financial, and beauty niches and is adaptable to changing content themes. She possesses a quick learning ability that aids her in the creation of reader-friendly content.
