Elizabeth Holmes Found Guilty of Four Charges of Fraud – The New York Times

Elizabeth Holmes Found Guilty of Four Charges of Fraud – The New York Times

ImageCredit…Jim Wilson/The New York Times

SAN JOSE, Calif. — Elizabeth Holmes, the founder of the failed blood testing start-up Theranos, was found guilty of four of 11 charges of fraud on Monday, in a case that came to symbolize the pitfalls of Silicon Valley’s culture of hustle, hype and greed.

Ms. Holmes, who had once promised to revolutionize health care, was the most prominent executive to field fraud accusations in a generation of high-flying, money-losing start-ups. A jury of eight men and four women took 50 hours over seven days of deliberations to reach a verdict, convicting her of three counts of wire fraud and one count of conspiracy to commit wire fraud by lying to investors to raise money for her company.

Ms. Holmes was found not guilty on four other counts related to defrauding patients who had used Theranos’s blood tests. The jury was unable to reach a verdict on three counts of deceiving investors, for which Judge Edward J. Davila of California’s Northern District said he planned to declare a mistrial.

Each count carries a maximum sentence of 20 years in prison, terms that are likely to be served concurrently. Ms. Holmes, 37, is expected to appeal. A sentencing date is expected to be set at a hearing on the three hung charges next week.

While the verdict was read, Ms. Holmes — who had falsely claimed that Theranos’s blood tests could detect a variety of ailments with just a few drops of blood — sat motionless. Then she gathered her belongings and whispered to her lawyer. She went down the row of family and friends in the court gallery behind her, hugging each one before leaving through a side door.

“It’s been a long case,” Judge Davila told the jury. “We collectively have been through many things.”

Stephanie Hinds, a U.S. attorney, said in a statement that the guilty verdicts reflected Ms. Holmes’s “culpability in this large-scale investor fraud.”

The verdict stands out for its rarity. Few technology executives are charged with fraud and even fewer are convicted. If sentenced to prison, Ms. Holmes would be the most notable female executive to serve time since Martha Stewart did in 2004 after lying to investigators about a stock sale. And Theranos, which dissolved in 2018, is likely to stand as a warning to other Silicon Valley start-ups that stretch the truth to score funding and business deals.

The mixed verdict suggested that jurors believed the evidence presented by prosecutors that showed Ms. Holmes lied to …….

Source: https://www.nytimes.com/live/2022/01/03/technology/elizabeth-holmes-trial-verdict

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