The Jury Finds Theranos Founder Elizabeth Holmes Guilty Of Fraud

She was found guilty on four of eleven charges by the jury. She was, though, cleared on three charges of client scamming as well as an associated charge of conspiracy. The jury was unable to reach a judgment on three other counts. According to the Associated Press, Holmes reportedly deceived investors by stating that Theranos invented a revolutionary technology to identify multiple illnesses with some few blood drops. In 2018, the firm closed its doors. Just at the age of 19, Holmes created Theranos. She also said the medical supplies made testing less unpleasant and more accessible. The firm allegedly collected over $900 million in funding from investors, including business magnate Rupert Murdoch and technology billionaire Larry Ellison.

Theranos founder Elizabeth Holmes duped the investors into investing in the business and collected over $900 million for her operations. She was found guilty on four charges by the jury.

RELATED: Bad Decisions, Bad Luck, And Alleged Fraud: How These Three Billionaires Lost Everything

Holmes can face a maximum of 20 years in prison for every charge, but law experts told the sources that she would be unlikely to receive the full penalty. Again after a three-month trial wherein 32 witnesses testified in front of the court, the jury of twelve reached their decision. A timeframe for punishment still has not been set. However, the magistrate suggested that he would likely issue the penalty following the trial of formerly Theranos Operating Officer Ramesh Balwani. The hearing for Balwani is set to begin in the following month. Even during the trial, shareholders testified before the judge that Holmes made various false statements, notably that the US armed services were utilizing the company’s devices, according to Reuters.

Former patients stated that if only they had realized Theranos’ procedures were defective, they might not have utilized them. Holmes was found not guilty of scamming patients. Her lawyers contended that there had been no statistical evidence suggesting that mistakes were occurring at a very high percentage and that Holmes was aware that the tests were erroneous. Prosecutors said that if Holmes had been upfront with financiers and customers, the company would never have received essential finance and income. In 2003, Holmes launched Theranos to transform blood testing. The firm garnered fantastic press attention and attracted over $700 million from investors. Theranos and Holmes reached an agreement to resolve the accusations while acknowledging or disputing any misconduct. Under the terms of the deal, Holmes, a Stanford dropout who was regarded as the next Steve Jobs, would pay a $500,000 penalty, surrender additional shares to the firm, and renounce her corporate electoral power. She also will be forbidden from functioning as an officer of the company of a public entity for ten years, according to The Guardian.

Conversely, Holmes argued in the final set of events that she had never intended to deceive anybody and that the accuracy of the results was the responsibility of the firm’s laboratory supervisors.

READ NEXT: Box Office Ended The Year 60 Percent Behind 2019 Despite Grossing $4.5 Billion Domestically

Sources: The Guardian, Reuters

Source: Read Full Article