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posted by martyb on Wednesday January 05 2022, @04:23AM   Printer-friendly
from the the-harder-they-fall dept.

Elizabeth Holmes Found Guilty on 4 of 11 Charges

Elizabeth Holmes found guilty on 4 of 11 charges:

Elizabeth Holmes was convicted today of three counts of criminal wire fraud and one count of criminal conspiracy to commit wire fraud. The jury delivered its verdict after six days of deliberation.

The government's victory in the case is a rare rebuke for tech startups, which often pitch investors on their technological prowess and business acumen using wildly optimistic assumptions.

Theranos was, perhaps, an extreme example, raising over $900 million on the back of claims that its proprietary tests were better, cheaper, and less invasive than the competition. None of those claims was true, and unlike many other Silicon Valley startups, the health and safety of patients was on the line.

Holmes was found guilty of defrauding Lakeshore Capital Management (the family office of the DeVoses) of $100 million, PFM Healthcare (a hedge fund) of $38 million, and an LLC connected to Daniel Mosley (Henry Kissinger's former estate attorney) of $6 million. She was also convicted of conspiracy to commit wire fraud against Theranos investors more generally. On three charges, all alleging wire fraud against investors, the jury returned no verdict. Holmes was acquitted of all other charges, including those that involved defrauding patients. She faces up to 20 years in prison.

With the guilty verdict, Holmes, the founder of the company, is the first Theranos executive to be held criminally responsible for her actions, though she may not be the last.


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  • (Score: 4, Informative) by DeathMonkey on Wednesday January 05 2022, @06:30PM (1 child)

    by DeathMonkey (1380) on Wednesday January 05 2022, @06:30PM (#1210203) Journal

    My understanding is that she didn't defraud any end users, though.

    She didn't defraud sick people because she just sent those samples out to normal labs to get the results done then lied to the investors about how her magical machine actually did all the work in a second.

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  • (Score: 1, Informative) by Anonymous Coward on Wednesday January 05 2022, @08:03PM

    by Anonymous Coward on Wednesday January 05 2022, @08:03PM (#1210236)

    as usual, many poops for you. so many poops!