Elizabeth Holmes trial verdict live update – Ex-Theranos CEO GUILTY of fraud after duping investors

THE jury in the trial against former Theranos CEO Elizabeth Holmes reached a verdict on Monday, January 3, 2022.

The ex-CEO was found guilty on four counts and not guilty on three counts, while the jury remained deadlocked on three more charges. A further count was canceled.

The 37-year-old was found guilty of conspiracy to defraud investors; wire fraud of Brian Grossman worth $38million; wire fraud of the DeVos family worth $100million; and wire fraud of former Cravath attorney Dan Mosley worth $6million.

Holmes — who was previously charged with fraud by taking more than $700million from investors while advertising a false product — faces up to 20 years in federal prison, in addition to a $250,000 fine and restitution for each wire fraud and conspiracy count.

Theranos, a Silicon Valley biotech company, had claimed to have created groundbreaking medical testing equipment, but after years of hype and billions of dollars later the diagnostics company's miracle machines allegedly did not work.

Prosecutors alleged Holmes knew it, yet continued to lie to investors so she could raise more than $700million.

Read our Elizabeth Holmes live blog for the very latest news and updates...

3RD JAN 2022, 20:05
Toxic workplace claims

According to about 100 employee reviews, the work environment at Theranos was allegedly toxic.

The company has also been described as a revolving door when it came to hiring and firing employees.

Former employee, Justin Maxwell, said on the first episode of ‘The Dropout’ podcast:

“Elizabeth did do a great job of recruiting amazing people. I would watch those people that I trusted disappear,” said Maxwell.

“Our office was right next to the general counsel and the head of business development, both of whom were people I had tremendous admiration for. They were extremely sharp and knew the industry very well and they just vanished.”

3RD JAN 2022, 20:00
What is Theranos? continued

Theranos – a notoriously secretive company – shared very little about its blood-testing machine with the public or medical community.

But that did not put off investors.

In fact, they bought what Holmes was selling and put hundreds of millions of dollars into the company.

At one time, Theranos was worth more than $10 billion and Holmes the nation’s youngest self-made female billionaire.

Former Secretaries of State Henry Kissinger and George Shultz were on its board.

3RD JAN 2022, 19:50
What is Theranos?

Elizabeth Holmes had founded the blood-testing company in 2003 at the age of just 19, pitching its technology as a cheaper way to run dozens of blood tests with just a prick of a finger and a few droplets of blood.

Holmes said she was inspired to start the company in response to her fear of needles.

Seen as a rising star in Silicon Valley, that led to comparisons to Apple’s Steve Job and Holmes fueled that idea by dressing almost entirely in black turtleneck sweaters.

3RD JAN 2022, 19:46
Homes faces 20 years in prison

The Theranos founder now faces up to 20 years in prison and a $250,000 fine, plus restitution for each count, after being found guilty of defrauding Theranos investors.

She was found guilty of four out of 11 federal charges.

3RD JAN 2022, 19:42
Holmes' family's reaction

A court sketch shows Holmes' father kissing on the forehead after she was found guilty of defrauding Theranos investors on Monday.

At one time, Theranos was worth more than $10 billion and Holmes the nation’s youngest self-made female billionaire.

3RD JAN 2022, 19:40
Carreyrou keeps reporting

The Wall Street Journal journalist whose reporting shone a light on Theranos reacted to the verdict in Elizabeth Holmes' trial on Monday.

3RD JAN 2022, 19:36
Wall Street Journal rang the alarm

When a Wall Street Journal article lifted the lid of Therano’s alleged shortcomings in 2015, the company was forced to close in 2018.

Walgreens ended its blood-testing partnership with the company, and the Department of Health and Human Services effectively banned Theranos in 2016 from doing any blood testing work at all.

Holmes and former Theranos President Balwani are now accused of scamming $700million out of investors.

They are also accused of using the money from investors to subsidize their luxury lifestyles.
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