The scandalous case of the biotech company Theranos has taken a new turn. On 15 June the Grand jury brought charges against the former General Director of the company, Elizabeth Holmes. It is considered involved in the organization of the fraudulent scheme to defraud investors.
According to information provided by the Prosecutor’s office of the state of North Carolina, entrepreneur and former COO of Theranos, Balwani, colluded with the intention to fraudulently obtain money from investors. Total charge consists of 11 items, 2 of which concern the organization of the conspiracy, and 9 — direct fraud. Elizabeth Holmes and her ex-employee Balwani, faces 20 years in prison and a fine of $250 thousand.
businesswoman inflated financial performance of the firm, and misled doctors and patients Theranos. Photo: flickr/CC/fortunempw/
The jury are sure that the company deliberately lied to potential investors. The business provided product data Theranos, which was not true. In particular, we are talking about a portable blood analyzers. As argued by Holmes, mini-labs was enough one drop of this liquid to give detailed information about its composition.
In addition, businesswoman inflated financial performance of the firm, and injected misleading doctors, patients and employees Theranos. For example, people who agreed to participate in testing of products, said that the results of the experiments are reliable and approved by the U.S. government. According to representatives of the Prosecutor’s office, it puts under a threat the life of patients , and could harm the reputation of the doctors who collaborated with Theranos.
Elizabeth Holmes and Ramesh Balwani deny his guilt. Businesswoman refused to give any comments, but former operations Director stated that he was innocent and ready to prove it in court.
Recall that in March 2018, the Commission on securities and exchange Commission (SEC) has already pleaded guilty Holmes in the deception of investors. According to the statement of the Commission illegally Theranos has attracted more than $700 million. The woman was fined $500 thousand, was removed from the post of the General Director of the company, and banned from the business for 10 years.
