Theranos founder Elizabeth Holmes convicted of fraud
The founder of the blood-testing startup company Theranos has been convicted of defrauding investors. Prosecutors said Holmes knowingly lied about technology.
Elizabeth Holmes, the founder of the blood-testing startup company Theranos, has been convicted of defrauding investors after a months-long landmark trial in California. Prosecutors said Holmes knowingly lied about technology she said could detect diseases with a few drops of blood.
Jurors found Holmes guilty of conspiracy to commit fraud against investors and three charges of wire fraud. She denied the charges, which carry a maximum prison term of 20 years each.
Nitasha Tiku, technology reporter of the Washington Post, has been following the case. She said it was a "landmark conviction" as there are so few prosecutions of tech executives. She says that Holmes crossed a line for "misrepresenting contracts she had with the military and misrepresenting the deals she had with pharmaceutical companies, and the blood-testing capabilities of her product".
"It's an aberration to see a tech executive that once graced the cover of magazines facing potential jail time".
Photo: Theranos founder Elizabeth Holmes and her family leave the federal court in San Jose, California Credit: Reuters
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