Theranos founder Elizabeth Holmes guilty of criminal fraud

January 04, 2022 07:27 PM AEDT | By Sukriti Nair

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Theranos founder Elizabeth Holmes guilty of criminal fraud — Image source: © Prometeus | Megapixl.com

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Highlights

Elizabeth Holmes guilty in 4 of 11 charges in federal court’s criminal fraud trial.

The Theranos founder is a Silicon Valley billionaire, who found fortune from new blood-testing technology.

Elizabeth Holmes, the 37-year-old founder of Theranos, is now a convicted fraudster. The famous youngest female billionaire of America, Holmes was found guilty in four of eleven fraud accusations by the federal court. As a result, her health startup Theranos, which had captivated investors with new blood-testing technology, is now defunct.

The collapse of Theranos and Elizabeth Holmes

The fallen star of Silicon Valley, Holmes had begun her journey with a whopping US$92 million in venture capital for her startup Theranos.
Theranos had been developing machines that could scale diagnostic testing extensively on just a few drops of blood.
Over a couple of years, Holmes has attracted big investors like Rupert Murdoch, soon reaching a valuation of over US$9 billion.
However, the glossy image broke in 2015 with a Wall Street Journal report revealing massive inaccuracies in in-house tests and the use of traditional blood drawing methods on many of its tests.
A federal court trial began and attracted media worldwide.
Holmes was accused of deliberately trying to inflate Theranos' credibility by hiding machine failures.
The CEO with fake promises, Holmes, was also convicted of defrauding PFM Healthcare Master Fund, Lakeshore Capital Management, and Mosley Family Holdings for millions of dollars.
On Monday, after seven extensive days of deliberations, the jury reached a unanimous conclusion and held the Theranos founder guilty of criminal fraud.
Holmes was found guilty of conspiracy to defraud investors and of wire fraud against investors.

Theranos founder Elizabeth Holmes guilty if criminal fraud

Fate of Theranos and Holmes-

Elizabeth Holmes now faces a maximum of 20 years in prison, though the sentencing date is yet to be confirmed. She has, for now, pleaded not guilty and might go for appeal. However, the 50-hour long trials have decided the fate of Theranos as a faker.

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