The indictment against Elizabeth Holmes and Ramesh “Sunny” Balwani was issued by a grand jury on June 14, 2018, charging them with crimes related to their respective roles in two multi-million dollar schemes to promote Theranos, a private health care and life sciences firm situated in Palo Alto, California.
Theranos is a corporation that specializes in life sciences and health care. On July 14, 2020, more charges were filed, and again on July 28, 2020.
According to the indictment, Holmes and Balwani committed fraud against medical professionals and their patients by exaggerating the capabilities of Theranos’ blood testing services and failing to disclose the company’s technological limitations and problems.
Defendants were aware that Theranos’s blood tests for calcium, chloride, potassium, bicarbonate, HIV, Hba1C, hCG, and sodium did not produce consistent and accurate results.
A federal jury found Holmes guilty on January 3, 2022, of investor wire fraud conspiracy and three substantive wire fraud counts related to the scheme to deceive investors, which involved wire transactions totaling more than $140 million.
Holmes was found not guilty on all four counts of wire fraud, including the conspiracy count related to a single patient. During the course of the trial, a jury decided to drop one accusation of wire fraud related to a Theranos patient.
Regarding the three counts of investment fraud, the jury was unable to arrive at a decision that was accepted by all members.
As a result of the conspiracy count and the two counts of wire fraud, Holmes faces a maximum of twenty (20) years in prison, a fine of $250,000, and restitution. However, the court would examine U.S. sentencing guidelines before imposing any punishment upon a conviction.
Elizabeth Holmes New Trial Date
It has been decided that Elizabeth Holmes will have her sentencing hearing on November 18th, 2022.
