A months-long federal fraud trial has resulted in the conviction of Elizabeth Holmes.
David Odisho is pictured.
The founder of Theranos was found guilty of three counts of wire fraud and one count of conspiracy to commit wire fraud on Monday. She was found not guilty on four other counts, but jurors were unable to reach a unanimous verdict on the remaining three counts.
One of the counts for which he was convicted was conspiracy to defraud investors, and three of the counts were wire fraud related to investments made by the DeVos family.
The patients who took the Theranos tests were acquitted of all charges.
There is a sponsored content.
There are 4 steps to scaling up your office tech fast.
ElizabethHolmes admitted to inaccuracies in her first major cover story.
The jury could not agree on three counts of wire fraud in connection with investments made by Chris Lucas, Alan Eisenman, and Bryan Tolbert.
The jury was told to keep deliberations going after they told the court they were hopelessly deadlocked on 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 carried 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 took 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. Former senators, US secretaries of defense, and billionaire CEOs were among its investors and board members.
In 2015, a Wall Street Journal investigation found that Theranos couldn't perform nearly as many tests as advertised and relied heavily on third-party devices. The startup stopped working in the year of18.
Silicon Valley's "fake it till you make it" culture, as well as holes in the traditional due diligence process, have been exposed by the Theranos saga.
The trial will begin in February.
