Elizabeth Homes, the former CEO and founder of Theranos, has is guilty on indicts of cable fraud and conspiracy to commit wire fraud. Holmes faces up to 20 years in prison for defrauding investors in her blood testing startup. The finding comes after a months-long trial, and more than three years after she was firstly billed and forced to step down as CEO in 2018.
Of the 11 total accusations, Holmes was found guilty on four: conspiracy to defraud investors and three tallies of cable impostor against individual investors. She was located not guilty on four additional charges, including one count of conspiracy to victimize patients, two tallies of forgery against investors, and one count of wire hoax stemming from ads Theranos ran in Arizona. The jury was deadlocked on three other counts of wire fraud and returned no verdict on those accusations.
During the ordeal, Holmes’ lawyers tried to evoke her as a young and inexperienced inventor. “Elizabeth Holmes directed herself to the bone for 15 years trying to form laboratory testing more economical, ” one of Holmes’ lawyers said in opening assertions. “She miscarried … but disappointment is not a crime.”
Holmes, who testified during the ordeal, said she hadn’t intended to mislead the public or investors, and had been advised to protect the company’s “trade secrets.” As The New York Times pointed out, she “spent much of her indication arguing that others at Theranos were responsible for the company’s shortcomings.”
The prosecution alleged that Holmes knew about serious breaches in the company’s technology and obstructed the question from investors. Former patients who had received inaccurate blood tests also witnessed, including an Arizona woman who received an incorrect result for an HIV test, and a woman who was misdiagnosed with a miscarriage.
Holmes’ story has been a source of widespread preoccupation even for those outside of Silicon Valley. At its meridian, Theranos was valued at more than$ 9 billion, and had a board of directors filled with former high-ranking government officials, including two former Secretary of State, Henry Kissinger and George Shultz. Holmes, “whos had” put out of Stanford to start the company, regularly appeared on magazine deals and was often compared to Steve Jobs and other iconic benefactors.( Holmes herself was reportedly infatuated with Jobs and accepted his signature black turtlenecks .)
Former Wall Street Journal reporter John Carreyrou was the first to report on issues with Theranos’ technology in 2015, and his coverage prompted several investigations and prosecutions that are likely resulted in criminal charges for Holmes and former COO Ramesh “Sunny” Balwani. On the stand, Holmes testified that her romantic tie-in with Balwani had been abusive. Balwani’s trial is scheduled to begin in February.
There has been no shortage of pop culture depictions of Holmes. After Carreyrou’s best seller, Bad blood, there was an HBO documentary and several podcasts about Theranos’ rise and eventual disgrace. Hulu is set to debut a new miniseries about the romance, with Amanda Seyfried starring as Holmes, in March. And Apple recently nabbed the Jennifer Lawrence-led film adaptation of Bad Blood.
Holmes, who will likely appeal the charges, could face up to 20 “years imprisonment”, though it’s not yet clear when she will be sentenced. Following the opinion, the adjudicator in the instances said Holmes would be allowed to remain free on bail for the time being, though a brand-new hearing “to discuss any change in the conditions of Holmes’ liberty” could come as soon as next week, according to Mercury News reporter Ethan Baron. Prosecutors also asked for Holmes bail status to be changed, which would require her “to put up cash or property, rather than exactly her signature, to cover her $500,000 bail.”
The judge likewise proclaimed a mistrial on the three cable scam indicts that had left the jury deadlocked. The mistrial leaves open the possibility of a new trial, though the prosecutors haven’t said whether they would pursue such an action.
Read more: engadget.com