A months-long federal fraud trial has resulted in the conviction of Elizabeth Holmes.
The founder of Theranos was found guilty of four counts of wire fraud on Monday. She was found not guilty of four other counts, but jurors were unable to reach a unanimous verdict on the remaining three counts.
There were nine counts of wire fraud and two counts of conspiracy to commit wire fraud against him. The Justice Department alleged that the former president and COO of Theranos schemed to defraud investors, doctors, and patients by making false claims about the company's technological abilities and finances, and by hiding information about issues with the company's blood. Each count carries a maximum 20-year prison sentence, a $250,000 fine, and a requirement to pay restitution.
In recent weeks, investors, patients, doctors, and ex-Theranos employees have taken the stand against the one-time Silicon Valley superstar.
29 witnesses were called to testify in the case. Among them were ex-Theranos employees who said they sounded the alarm on testing issues to no avail, former investors and board members who were wooed by false claims, and Theranos patients who recounted inaccurate test results.
The defense relied on testimony from the last of their three witnesses to make their case, and they called few witnesses. During her testimony, she said that she relied on Balwani, lab staff, and others for information about Theranos and that she had no reason to doubt them when they reported good news about the company.
Several key admissions were made by Holmes. She admitted to adding logos from Pfizer, Glaxosmithkline, and Schering-Plough to company reports without permission but said no one from the pharmaceutical firms objected or told her to remove the logos. She admitted to hiding the use of modified third-party devices because she wanted to protect the trade secrets.
She leaned on her trade secret defense to try to kill the Wall Street Journal's expose on the company. Theranos' handling of the claims of a whistle blower and her approach to a Fortune article that helped catapult him to fame are both regrets.
At 19 he dropped out of college to start Theranos. The company was worth $9 billion at its peak, and became the world's youngest self-made female billionaire. An investigation by the Wall Street Journal found that Theranos couldn't perform nearly as many tests as advertised and relied heavily on third-party devices.
Silicon Valley's "fake it till you make it" culture has been exposed, as well as holes in the traditional due diligence process, and an indictment of the girlboss feminism for whichHolmes was a poster child. The cult of celebrity surrounding startup founders and CEOs helped the charismatic Holmes rake in cash for Theranos while revealing so little about the company.
The trial will begin in February.
