Theranos claimed to have devised a revolutionary blood test that used very small amounts of blood such as that which can be extracted from a fingerstick. Starting in 2015,
Theranos came under criticism in the media due to its questionable claims and practices. The company was eventually liquidated. Balwani and Holmes were criminally charged by federal authorities for operating the business as a multi-million-dollar scheme to defraud investors and patients.
Balwani (57) has been found guilty of all 12 charges of federal wire fraud and conspiracy to commit wire fraud by a jury after four days of deliberations, and now faces up to 20 years in prison plus fines and restitution. The jury concluded he was guilty of defrauding both investors and patients.
She claimed Balwani exerted control over her, restricting her daily activities and even forcing her into sex – allegations that are strenuously denied – and maintained that he actually wielded more power than her in the running of the company.
Balwani’s lawyers said in a statement after the verdict that they were examining all options, including a possible appeal. They argued that Balwani had acted in good faith whilst serving as Theranos’ COO and genuinely believed in the company’s technology.