Theranos former CEO Elizabeth Holmes found guilty in trial
Former CEO and Theranos founder Elizabeth Holmes was convicted on four charges. The jury found her guilty of defrauding investors involving hundreds of millions of dollars. The verdict sealed the end and downfall of a promising tech figure.
While Theranos is a failed start-up company that promised a revolutionary blood-testing innovation, Holmes failed to deliver her promises. Leading to Holmes facing the charges. She was found guilty of one count of conspiracy defrauding investors and three fraud counts linked to specific investors.
Holmes was set to face the longest charge of up to 20 years in prison. In addition, there’s a fine of $250,000 plus restitution for every count.
After going over 50 hours of deliberations for seven days, a jury consisting of four women and eight men convicted Holmes. Although the jury found her not guilty on four other fraud charges.
Elizabeth Holmes leaves the federal courthouse in San Jose convicted by a jury of four counts in her fraud trial. pic.twitter.com/pLO38NKiUX
— Bobby Allyn (@BobbyAllyn) January 4, 2022
These charges are linked to the patients’ allegations. They claimed they received false test results from Theranos. In 2018, the once successful company that Holmes started at age 19 fell apart.
While the jury presented a verdict on the other fraud charges, they returned no verdict on the other three wired fraud charges. The jury was unable to reach a unanimous verdict on three other counts of investor fraud.
US District Judge for the Northern District of California Edward Davila is likely to announce a mistrial for those three counts. However, it didn’t happen so it’s unclear whether the prosecutors are planning to indict her again for those charges. Under federal law, this is possible to transpire.
While US Attorney Stephanie Hinds said, “The guilty verdicts, in this case, reflect Ms.Holmes culpability in this large-scale investor fraud. And she must now face sentencing for her crimes.”
What Leads to the Verdict
Hinds also added in a statement that a spokesperson shouted outside the courthouse. “The jurors in this 15-week trial navigated a complex case amid a pandemic and scheduling obstacles.”
Although the date of Holme’s sentencing wasn’t announced yet, her penalty of 20 years can likely be reduced to a lighter punishment. This is according to some legal experts.
Reminder that the Elizabeth Holmes/Theranos story is also a massive failure of the media https://t.co/jsWWynSObw
— Oliver Willis (@owillis) January 4, 2022
It was noticeable that Holmes was only charged guilty on counts involving investor fraud. But she has no charge with fraud connected to patients. Over its 11-week deliberation, the government just called three patient witnesses. Two of them are connected to wire fraud charges.
The court was notably quiet as the judge read the verdict. Holmes with her mask on can’t be seen with any reaction. She then went to hug her family members sitting in the front row.
Elizabeth Holmes, 37, walked out of the courthouse holding her partner Billy Evans’ hands. Her parents followed after them. As she came out, Holmes faced dozens of reporters and cameras. However, she didn’t comment on any of the reporters’ questions.
As the trial lasted for almost four months in San Jose California, the jurors had made their impression on Holmes. This was based on the 30 witnesses they had called. The jurors saw Holmes as a charming entrepreneur. She secured hundreds of millions of dollars in investment for medical equipment. However, she failed to do what she had promised.
split verdict in Theranos/Holmes trial is nevertheless a serious loss for her. She is convicted on of one count of conspiracy to commit wire fraud and three counts of wire fraud against specific investors. Her exposure is as severe as if convicted of everything
— Harry Litman (@harrylitman) January 4, 2022
When Theranos was almost facing its downfall, the government argued. Holmes hides the truth and covers for it. She insisted that the devices can diagnose diseases just through blood tests taken from the fingers.
Elizabeth Holmes Success and Downfall
For more than 20 hours, Holmes testified at the witness stand. She even accused Theranos’ former deputy and ex-boyfriend of sexual abuse. She’s claiming that the abuse affected her decision-making. The sexual abuse testimony appeared sketchy for the legal experts.
Elizabeth Holmes founded Theranos at a very young age even if she’s a Stanford University dropout. Silicon Valley looked up to her success considering she’s young. Her technology promises innovation that even biotech experts are dazzled with.
The story behind the Menendez Brothers
The Theranos devices gave some patients false results when they came out in Walgreens stores. One patient received a result that her cancer had returned even if it didn’t. This is following a test. Though at the end of the trial, the jurors didn’t believe that Holmes intended to deceive patients.
Moreover, big personalities also believed Holmes when she launched Theranos. Some of them are former Secretary of State Henry Kissinger, former President Bill Clinton, and Mexican billionaire Carlos Slim. They believed in the company’s potential and urged global investment. Theranos reached a market value of $9 billion before it collapsed in 2015. This is following the Wall Street Journal’s release of Theranos’ exposures.