THE jury in the trial against former Theranos CEO Elizabeth Holmes reached a verdict on Monday, January 3, 2022.
The ex-CEO was found guilty on four counts and not guilty on three counts, while the jury remained deadlocked on three more charges. A further count was canceled.
The 37-year-old was found guilty of conspiracy to defraud investors; wire fraud of Brian Grossman worth $38million; wire fraud of the DeVos family worth $100million; and wire fraud of former Cravath attorney Dan Mosley worth $6million.
Holmes — who was previously charged with fraud by taking more than $700million from investors while advertising a false product — faces up to 20 years in federal prison, in addition to a $250,000 fine and restitution for each wire fraud and conspiracy count.
Theranos, a Silicon Valley biotech company, had claimed to have created groundbreaking medical testing equipment, but after years of hype and billions of dollars later the diagnostics company’s miracle machines allegedly did not work.
Prosecutors alleged Holmes knew it, yet continued to lie to investors so she could raise more than $700million.
Read our Elizabeth Holmes live blog for the very latest news and updates…
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Holmes’ husband ‘shaken’
After the judge left the courtroom to meet with jurors individually, Holmes got up to hug Billy Evans and her parents before leaving with her lawyers. Evans later emerged in the hallway outside the courtroom, looking visibly shaken and emotional.
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Mistrial on three counts
The judge in Elizabeth Holmes’ trial has declared a mistrial on the three counts the jury could not reach a unanimous verdict on.
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Homes showed no emotion
The former entrepreneur, who had bowed her head several times before the jury was polled by the judge, remained seated and expressed no visible emotion as the verdicts were read. Her partner, Billy Evans, showed agitation in earlier moments but appeared calm during the verdict reading.
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Toxic workplace claims
According to about 100 employee reviews, the work environment at Theranos was allegedly toxic.
The company has also been described as a revolving door when it came to hiring and firing employees.
Former employee, Justin Maxwell, said on the first episode of ‘The Dropout’ podcast:
“Elizabeth did do a great job of recruiting amazing people. I would watch those people that I trusted disappear,” said Maxwell.
“Our office was right next to the general counsel and the head of business development, both of whom were people I had tremendous admiration for. They were extremely sharp and knew the industry very well and they just vanished.”
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What is Theranos? continued
Theranos – a notoriously secretive company – shared very little about its blood-testing machine with the public or medical community.
But that did not put off investors.
In fact, they bought what Holmes was selling and put hundreds of millions of dollars into the company.
At one time, Theranos was worth more than $10 billion and Holmes the nation’s youngest self-made female billionaire.
Former Secretaries of State Henry Kissinger and George Shultz were on its board.
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What is Theranos?
Elizabeth Holmes had founded the blood-testing company in 2003 at the age of just 19, pitching its technology as a cheaper way to run dozens of blood tests with just a prick of a finger and a few droplets of blood.
Holmes said she was inspired to start the company in response to her fear of needles.
Seen as a rising star in Silicon Valley, that led to comparisons to Apple’s Steve Job and Holmes fueled that idea by dressing almost entirely in black turtleneck sweaters.
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Homes faces 20 years in prison
The Theranos founder now faces up to 20 years in prison and a $250,000 fine, plus restitution for each count, after being found guilty of defrauding Theranos investors.
She was found guilty of four out of 11 federal charges.
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Holmes’ family’s reaction
A court sketch shows Holmes’ father kissing on the forehead after she was found guilty of defrauding Theranos investors on Monday.
At one time, Theranos was worth more than $10 billion and Holmes the nation’s youngest self-made female billionaire.
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Carreyrou keeps reporting
The Wall Street Journal journalist whose reporting shone a light on Theranos reacted to the verdict in Elizabeth Holmes’ trial on Monday.
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Wall Street Journal rang the alarm
When a Wall Street Journal article lifted the lid of Therano’s alleged shortcomings in 2015, the company was forced to close in 2018.
Walgreens ended its blood-testing partnership with the company, and the Department of Health and Human Services effectively banned Theranos in 2016 from doing any blood testing work at all.
Holmes and former Theranos President Balwani are now accused of scamming $700million out of investors.
They are also accused of using the money from investors to subsidize their luxury lifestyles.
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Deadlocked on three charges
The jury could not agree on on a verdict for three of the 11 charges against Holmes.
The three counts were:
- Wire fraud against Theranos investors: wire transfer of $99,990 from Alan Jay Eisenman
- Wire fraud against Theranos investors: wire transfer of $5,349,900 from Black Diamond Ventures
- Wire fraud against Theranos investors: wire transfer of $4,875,000 from Hall Phoenix Inwood Ltd.
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GUILTY of defrauding investors
The jury found Holmes guilty of Count 1, Conspiracy to commit wire fraud against Theranos investors.
However, she was found NOT GUILTY of Count 2, Conspiracy to commit wire fraud against Theranos paying patients.
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Elizabeth Holmes found guilty on some charges
The jury revealed Elizabeth Holmes was found guilty on four counts and not guilty on four counts.
No verdict was found for count 3, 4, and 5,
Count 9 was canceled, according to reports.
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Does Elizabeth Holmes have any children?
Elizabeth Holmes and Billy Evans share a son, William Holmes Evans.
Their son was born on July 10 in Redwood City, California, according to birth records obtained by ABC News.
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Verdict to be revealed
“The jury in #Theranos founder #ElizabethHolmes’ criminal fraud trial has reached a verdict on eight of 11 counts leveled against the former CEO,” Miles G. Cohen revealed on Twitter on Monday.
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Loving text messages revealed
Prosecutors released a series of lovey-dovey text messages of Theranos founder Elizabeth Holmes fawning over the chief operating officer she now accuses of emotional abuse in her fraud trial.
“You are breeze in desert for me,” read one message from Holmes to her then-boyfriend Balwani back in May 2015. “My water. And Ocean.”
The text messages between Holmes and Balwani put on display how together they tried to navigate around fraud allegations possibly poking holes in her defense that she was being coerced by an abusive lover.
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What is Theranos? continued
Theranos – a notoriously secretive company – shared very little about its blood-testing machine with the public or medical community.
But that did not put off investors.
In fact, they bought what Holmes was selling and put hundreds of millions of dollars into the company.
At one time, Theranos was worth more than $10 billion and Holmes the nation’s youngest self-made female billionaire.
Former Secretaries of State Henry Kissinger and George Shultz were on its board.
-
What is Theranos?
Elizabeth Holmes had founded the blood-testing company in 2003 at the age of just 19, pitching its technology as a cheaper way to run dozens of blood tests with just a prick of a finger and a few droplets of blood.
Holmes said she was inspired to start the company in response to her fear of needles.
Seen as a rising star in Silicon Valley, that led to comparisons to Apple’s Steve Job and Holmes fueled that idea by dressing almost entirely in black turtleneck sweaters.
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Does Theranos still operate?
The company ceased operations in 2018, after its founder, Elizabeth Holmes, was indicted for wire fraud and conspiracy.
Theranos was founded in 2003, and its peak value was $10billion.
The company’s slogan was: “One tiny drop changes everything.”
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Who is Elizabeth Holmes’ husband?
William “Billy” Evans, reportedly grew up near San Diego, California. He’s one of three children born to his parents, Susan and William L. Evans.
Evans attended the Massachusetts Institute of Technology, where he graduated in 2015 with a bachelor’s degree in economics.
During summers between school, Evans worked at various financial and consulting companies in California, according to his LinkedIn. He was also a student brand manager at Red Bull while at MIT.
The Evans family has lived in the San Diego area for generations. Billy Evans’ grandparents, Anne and William D. Evans, founded a hotel management group in 1953 called Evans Hotels.
The group manages three properties in the San Diego area.
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Jurors asked to hear audio again
An initial request by jurors during deliberations included hearing a playback of audio recordings of Holmes.
The audio, which was recorded without Holmes’ knowledge, included her bragging about partnerships that never materialized, including with drug companies and the US military.
Holmes returned to the courtroom on Thursday and intently watched jurors’ reactions as they re-listened to the clip, The Associated Press reported.
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When did the trial begin?
The trial began in September.
It has so far taken four months, with 32 witnesses taking the stand.
Closing arguments wrapped up on December 17.
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How long could Elizabeth Holmes face behind bars?
If convicted, Elizabeth Holmes could face up to twenty years in federal prison.
Prosecutors alleged Holmes tricked investors into funding Theranos Inc.
It is alleged Holmes knew it yet continued to lie to investors, doctors and patients so she could raise more than $700million.
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Who is Sunny Balwani, continued
Balwani met Holmes while at Berkeley. She was 18 years old and a senior year in high school.
They reportedly started a romantic relationship the following year, after Holmes dropped out of Stanford University in March 2004 to start Theranos.
Balwani joined the company in 2009 and quickly rose up the ranks from vice president to chief operating officer.
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Who is Sunny Balwani?
Ramesh “Sunny” Balwani is the former boyfriend of Elizabeth Holmes and the former chief of the blood-testing startup Theranos, Inc.
The 56-year-old American businessman is charged alongside Holmes with fraud and conspiracy for allegedly tricking investors and doctors to help fund the company, and providing false medical results to patients.
Balwani was born in 1965 in Pakistan to a Sindhi Hindu family who emigrated to the United States.
He studied information systems at the University of Texas at Austin.
