Elizabeth Holmes found guilty on 4 counts of defrauding Theranos investors
Theranos founder Elizabeth Holmes was convicted on three counts of criminal wire fraud and one count of conspiracy to commit wire fraud Monday, with a jury unanimously finding her guilty of illegally fleecing investors out of millions of dollars through her startup blood diagnostics company.
The jury deadlocked on three counts of wire fraud, and she was found not guilty on four counts of defrauding patients.
Holmes, 37, turned toward the judge and jurors as the judge's deputy read the verdict to the packed courtroom in San Jose’s federal district court. The former media darling, dressed in a gray skirt suit, sat upright and was flanked by two of her defense attorneys. Holmes showed no sign of emotion, though she embraced her family members briefly before exiting the courtroom.
On 11 separate felony counts contained in the indictment — each carrying a maximum penalty of 20 years in prison — the jury found Holmes guilty on three of nine counts of wire fraud and one of two counts of conspiracy to commit wire fraud.
The conspiracy to commit wire fraud, prosecutors said, was formed by an agreement between Holmes and her co-defendant Ramesh "Sunny" Balwani to induce investors to back Theranos by making "numerous misrepresentations to potential investors about Theranos’ financial condition and its future prospects." Balwani was Holmes' long-time boyfriend and served as Theranos' COO.
Judge Edward Davila will hand down a sentence at a later date. Under California law, felony convictions must be scheduled for sentencing within 20 days of a guilty verdict, though exceptions to that rule can apply. The government's decision on whether to retry Holmes on the three hung charges could impact the sentencing date.
https://finance.yahoo.com/news/elizabeth-holmes-theranos-verdict-002652679.html