A federal judge on Friday shamed Theranos founder Elizabeth Holme's scam procedure to start in July 2020. If she is sentenced, she is up to 20 years in prison and millions of dollars in fines.
Holmes has been charged with crime conspiracy and fraud for allegedly misleading investors, business partners and patients claiming her allegedly revolutionary blood test equipment, reports CBS San Francisco.
She and Sunny Balwani, her former boyfriend and Therano's president, were accused of a large jury of 11 criminal counts of fraud and conspiracy to commit fraud. The couple can also face fines totaling $ 2.75 million each.
Holmes was 1
Holmes was considered a visionary in line with Steve Jobs, and she emulated her style, just wearing a black turtleneck and black public pants. She was the youngest, self-made female billionaire in the world, according to "."
But that was all a fraud. A former Theranos employee told Norah O & # 39; Donnell about "60 minutes" that the "revolutionary technology" called Edison never really worked. Other former employees claimed that some blood samples returned conflicting and unimaginable results when tested and that Holmes lied to Walgreens when she told them that Edison was ready for use on patients, which led to a partnership that planned to put the device in each store .
Holmes and Balwani signed both Safeway and Walgreens for agreements to use Therano's testing equipment in clinics in their stores.
Balwani, 53, Atherton, was employed by Theranos from September 2009 to 2016. Sometimes during that period, Balwani worked in several capacities, including as a member of the company's board, as his president and as his senior manager.
According to the accusation, Holmes and Balwani used advertisements and incentives to encourage and induce doctors and patients to use Therano's blood test laboratory services, although the defendants who allegedly knew Theranos were unable to consistently produce accurate and reliable results for certain blood samples .
Moreover, the tests performed on the Theranos technology would contain inaccurate and unreliable results.
The accusation claims that the defendants used a combination of direct communication, marketing materials, statements to the media, accounting, models, and other information to scam potential investors.
In particular, the defendants claimed that Theranos said it developed a revolutionary and proprietary analyzer known by various names, including TSPU, Edison or minilab.
The defendants claimed that the analyzer could perform a wide range of clinical tests using small blood samples taken from a finger stick, and that the analyzer could provide results that were more accurate and reliable than those provided by conventional methods – all at one faster speed than previously possible.
The accusation further claims that Holmes and Balwani knew that many of their representations about the analyzer were false.
The defendants were allegedly represented to investors that Theranos had a profitable and revenue-generating business relationship with the US Department of Defense, and that Therano's technology had been used for the battle field – a claim that was false.
"She fooled everyone. Everyone," said Donnell "60 minutes overtime." "She had hundreds of MIT employees from Harvard, from Apple. The smartest people in Silicon Valley went to work for her. "They believed in her. It wasn't just the media. It was the people who gave her $ 900 million. I mean, there were many prominent, very smart people who bought into the myth of Elizabeth Holmes."
Like O & # 39 Donnell reported "60 minutes", bought almost all media, including CBS News, into Theranos Myth.
The Securities and Exchange Commission broke civil fraud against Holmes and Balwani, Holmes dealt with the SEC and agreed to pay $ 500,000 in fines and penalties Balwani is fighting for the charges.