Elizabeth Holmes Found Guilty of Defrauding Investors

On Monday, January 3, 2022, Elizabeth Holmes, the former CEO and founder of Theranos, was found guilty of defrauding investors. Holmes was convicted on four of eleven charges.

The jury found Holmes not guilty on three charges related to defrauding patients and on one charge of conspiring to defraud patients. No verdict was returned on three charges related to defrauding investors. Holmes was found guilty on three wire fraud charges related to specific investors, along with a charge of conspiracy to defraud investors. For each guilty count, Holmes faces up to 20 years in prison and a fine of $250,000 plus restitution.

The jury deliberated for 50 plus hours over seven days. Prior to delivering its verdict, the jury returned a note to Judge Edward J. Davila stating that they could not reach a unanimous verdict on three of the charges pertaining to investor wire fraud. Judge Davila issue an Allen charge instructing the jury to continue their attempt in deliberating to reach a verdict. Hours later, the jury returned a new note indicating they were unable to reach a verdict on those three counts.

Theranos’s former COO, Ramesh “Sunny” Balwani, will be tried at a later date. Balwani has pleaded not guilty on the same charges Holmes faced.

Additional Reading

Elizabeth Holmes found guilty on four out of 11 federal charges, CNN Business (January 4, 2022)

U.S. jury finds Theranos founder Holmes guilty of fraud, Reuters (January 3, 2022)

United States v. Elizabeth A. Holmes, et al. 18-CR-00258-EJD, United States District Court, Northern District of California

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