US Jury Finds Theranos Founder Elizabeth Holmes Guilty on 4 of 11 Fraud Counts
00:16 GMT 04.01.2022 (Updated: 13:27 GMT 06.08.2022)
© AP Photo / Nic CouryFILE - Elizabeth Holmes, founder and CEO of Theranos, arrives at the federal courthouse for jury selection in her trial, Tuesday, Aug. 31, 2021, in San Jose, Calif. Coming into 2022, Holmes, once worth $4.5 billion on paper, is now awaiting a jury's verdict on fraud charges that she misled investors and patients about the accuracy of a blood-testing technology developed at her startup Theranos.
© AP Photo / Nic Coury
A California jury has reached a verdict in the fraud case against Elizabeth Holmes, the disgraced founder of tech startup Theranos.
The jury found Holmes guilty on four of the 11 charges brought against her: one count of conspiracy against Theranos investors between 2010 and 2015, one count of wire fraud against Theranos investors, and two counts of wire fraud.
The jury also found her not guilty of one count of conspiracy against patients who paid for blood testing services between 2013 and 2016, one count of wire fraud in connection with a bank transfer, and two counts of wire fraud in connection with two different patients’ lab results.
The jury failed to reach a verdict on two counts of wire fraud in connection with money transfers, which could potentially be retried. A 12th charge was dropped.
Each charge brings up to 20 years in prison and a $250,000 fine, plus restitution costs. Holmes is 37 years old.
The jury has deliberated in San Jose for more than two weeks, coming after a three-month-long trial during which the prosecution brought 29 witnesses, including ex-Theranos employees, retail executives and former US Secretary of Defense Jim Mattis, who served on Theranos' board. The defense called just three witnesses.
Holmes founded Theranos in 2003, claiming the firm would revolutionize blood testing by using just a few drops of blood to detect a wider range of diseases than ever before. The company drew millions in investment and was valued at $9 billion by 2014. However, revelations in 2015 that the company's equipment was only capable of performing a dozen tests instead of the 1,000 Holmes had told investors, and that Theranos was actually using other manufacturers' machines to run their tests, led to closer examinations by the authorities and the filing of charges against Holmes and Theranos CEO Ramesh Balwani in 2018. Theranos folded that same year.
Balwani faces the same charges as Holmes and is set to be tried in February.