Theranos CEO Elizabeth Holmes charged with criminal fraud

Elizabeth Holmes on stage at the Wall Street Journal Digital Live where the allegedly told a pile of lies

A federal grand jury indicted Theranos founder Elizabeth Holmes on wire fraud charges for a scheme to defraud investors in the health technology company, federal prosecutors in California announced Friday.

Holmes, 34, and Balwani, 53, were each charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud. Securities and Exchange Commission that Theranos, Holmes and the company's ex-president, Ramesh "Sunny" Balwani, lied about their technology while raising more than $700 million to build the medical-testing startup.

To view the full article, register now.

As the roll-out with Walgreens neared, Holmes told the company's engineers to modify standard blood-testing machines to run Theranos's tests, according to the SEC.

These issues were outlined by the indictment which also alleged that Holmes and Balwani presented Therano's financial conditions with numerous misrepresentations such as its 2015 revenue projections of $1bn. David Taylor, the company's general counsel, will serve as CEO, the Post reports.

At its peak, Theranos attracted prominent venture capitalists like Timothy Draper, Holmes' former neighbor, and Don Lucas, an early investor in Oracle. And a scrutiny from health regulators forced the company into an agreement to reimburse some 76,000 Arizonans who have used its services after retracting two years of its blood tests. "Mr. Balwani looks forward to trial because he did not defraud anyone, and it will be an honor to defend him vigorously", he said.

Читайте также: Video game addiction is now being recognised as a mental health condition

Prosecutors said that Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos' blood testing technologies from at least 2013.

Holmes, a charismatic executive who wore black turtlenecks and spoke passionately about her aim to remake health care, also assembled a star-studded board, including two former secretaries of state, George P. Shultz and Henry A. Kissinger, as well as two former USA senators.

Holmes enjoyed a decade-long meteoric rise in Silicon Valley after dropping out of Stanford University as a 19-year-old sophomore to start what she trumpeted as a disruptive new blood analysis system.

The Justice Department claimed that the duo knew their startup was not capable of delivering the promises that were made to doctors, the media, and investors. In addition to the refunds, Theranos has been banned from owning or operating any lab in Arizona for the next two years. Holmes and Balwani claimed that the company developed a revolutionary and proprietary analyser they referred to by various names. She and the company did not admit nor deny the allegations.

Lawyers for Balwani are still fighting back, however. "The [Food and Drug Administration] would like to extend our thanks to our federal law enforcement partners for sending a strong message to Theranos executives and others that these types of actions will not be tolerated", said Catherine Hermsen, acting director of the FDA Office of Criminal Investigations.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2018 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related News:

  • Donald Trump ratchets up China trade dispute with new tariffs

    Donald Trump ratchets up China trade dispute with new tariffs

    The tariffs were quickly matched by China on U.S. exports, including lobsters and soybeans, a move that drew the president's ire. Trump had already warned last week of "additional tariffs" should Beijing hit back with tit-for-tat duties on American goods.
    Rapper XXXTentacion reportedly shot dead in Florida

    Rapper XXXTentacion reportedly shot dead in Florida

    Sheriff's public information officer Keyla Concepcion said XXXTentacion had been at RIVA Motorsports checking out inventory. According to Miami-Dade Department of Corrections officials, Onfroy was on house arrest until March 21.
    Israel indicts former cabinet minister on Iran spying charges

    Israel indicts former cabinet minister on Iran spying charges

    Another called for regime change in Israel where, he said, "There are many political prisoners" with "no freedom of expression". Segev is reportedly now being held at a Shin Bet facility.
  • Ashley Iaconetti And Jared Haibon Got Engaged Where It All Began

    Ashley Iaconetti And Jared Haibon Got Engaged Where It All Began

    In addition to Bachelor in Paradise AU , Haibon previously appeared the USA version of The Bachelorette . ABC announced on Monday that Ashley Iaconetti and Jared Haibon are engaged.
    App maker tool now available for Google’s G Suite users

    App maker tool now available for Google’s G Suite users

    The company has also provided an administrative whitelisting control to avoid apps from running without their permission. Google explains: "Today, we're making App Maker generally available to help you rethink how your teams operate".
    South Africa v England: Billy Vunipola breaks arm in second Test

    South Africa v England: Billy Vunipola breaks arm in second Test

    Sir Clive Woodward was highly critical of Youngs's behaviour and the England scrum-half later took to social media to apologise. But I have also got a job to do, which is the process of coaching.
  • Meghan Markle's dad makes baby revelations in Good Morning Britain interview

    Meghan Markle's dad makes baby revelations in Good Morning Britain interview

    She walked about half the aisle by herself, with Charles waiting further down to escort her from the end of the Nave to the altar. Markle also claimed that he discussed politics with his new royal son-in-law, including the United States president and Brexit .
    Kolarov's stunner hands Serbia victory over Costa Rica

    Kolarov's stunner hands Serbia victory over Costa Rica

    Milinkovic-Savic gave Navas a workout in the first half, and while he didn't score, he is clearly a potent weapon for Serbia . Serbia midfielder Sergej Milinkovic-Savic also wasted a good opportunity in the 28th minute, but he was ruled offside anyway.
    Khloé Kardashian returned to Los Angeles without Tristan Thompson?

    Khloé Kardashian returned to Los Angeles without Tristan Thompson?

    But this was before Kardashian indicated where she would be spending her Father's Day. "Oh, I am just in love". Kardashian, 33, also posted her daughter grasping her father's fingers while taking a nap in her vehicle seat.
  • Details of the OPPO Find X revealed

    Details of the OPPO Find X revealed

    The smartphone is expected to run Android 8.1 Oreo operating system topped with company's own layer of customisation Color OS 5.1. That's because Oppo has been teasing its new flagship smartphone, due to launch tomorrow, with a 93.8% screen-to-body ratio.
    Fortnite Reveals New Item, the Stink Bomb

    Fortnite Reveals New Item, the Stink Bomb

    Teased through the "News" tab at the main menu, Epic Games has revealed that the Fortnite stink bomb is "coming soon". This stench is so pungent that it causes enemies to take damage.
    Saudi football team safe after plane engine catches fire at World Cup

    Saudi football team safe after plane engine catches fire at World Cup

    The plane caught fire due to a "minor technical malfunction in an engine". "Nothing threatened the safety of the passengers". The team did not clarify at what point during the flight the fire broke out.


Most liked

'Papa! Papa!' Audio of children stokes rage over separation
The signs of splintering of GOP support come after longtime Trump ally, the Rev. Franklin Graham, called the policy "disgraceful". Trump blamed Democrats for the problem.

Toxic Giant Hogweed Plant Has Spread to Virginia
To learn about the identification of giant hogweed and compare it to common look-alikes, check out the NYDEC site here . If you must touch giant hogweed, wear disposable rubber gloves, a long-sleeved shirt and trousers .

Kawhi Leonard Reportedly Won't Be Traded Within Western Conference
In the past year, there have been rumors swirling that LeBron could go to the Lakers and leave the Cavaliers . Any offer Cleveland might make would have to start with the No.8 overall pick in Thursday's NBA Draft.

Malmo, Sweden Shooting: Full Story & Must-See Details
At least five people were wounded in a shooting in the southern city of Malmo on Monday evening, Swedish police said . Witnesses told newspaper Aftonbladet they heard what sounded like 15 to 20 shots about 6:15pm in the city centre.

Black Panther star wins hero award, and honors a real hero
The actor was accepting the MTV Movie & TV Award for best hero in a movie when he invited James Shaw Jr .to the stage. But just how did she do it? Actor Chris Pratt won the Generation award, a sort of lifetime achievement award.

Arsenal close in on Bernd Leno and Lucas Torreira £48m double signing
Talks have been ongoing for some time, but it appears a switch to north London from Germany is imminent. Leno has spent the past seven seasons at Leverkusen, making 233 appearances for the Bundesliga club.

Donald Trump readies $200 billion in China tariffs, citing 'unacceptable' policies
Then China followed suit, unveiling 25 per cent duties on US$50 billion in United States imports - matching the U.S. rates. Trump's latest move, as Washington fights trade battles on several fronts, was unexpectedly swift and sharp.

John Cena To Reverse His Vasectomy
The WWE Superstar reveled his willingness to make the change during the midseason finale of Total Bellas . Bella replied, "but you have the." quickly trailing off from what she was going to say.

Millennials Leave The Worst Tips, Survey Suggests
Waiters and waitresses serving younger adults beware: you may not receive a big tip - or, in some cases, any at all. About 45 percent of the childless tip 20 percent, on average, compared to less than 34 percent of moms and dads.

Five-time champion Brazil held 1-1 by Switzerland in World Cup
Tite said he would not make excuses for the disappointing scoreline. "He will not go through any specific treatment, we are not anxious ".

'Gaming Disorder' Now Officialy Recognized as a Mental illness
Welcoming WHO's decision, he said it would bring more acceptance even among the victims that they have a disease and help is available.

Brooks Koepka defends U.S. Open title
It was the first time since 2013 at Merion that no one broke par in the US Open . "Everyone said Erin Hills was set up for me". I enjoy being pushed to the limit. "I knew if you hit the fairway and hit the green you were going to have some good looks".

S Korea, US to announce suspension of military drills
The Pentagon has formally suspended a major military exercise that was planned with South Korea in August. No exercises in the Pacific outside of the Korean peninsula will be affected, White said.

Trump escalates China trade spat with extra tariffs threat
And the China trade offensive is only one side of Trump's multi-front battle with all major United States economic partners. Earlier on Monday, stock markets fell amid fears of further deterioration of US-China trade relations .

Heat Advisory In Effect For Kosciusko County
The National Weather Service issued a "code orange" alert for air quality on Sunday for the Triad and the Charlotte metro area. A heat wave hitting the Chicago area this weekend is expected to bring near-record heat Saturday, with heat indices of 100.