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June 15, 2018

Elizabeth Holmes reportedly steps down at Theranos after criminal indictment

Elizabeth Holmes has left her role as CEO of Theranos and has been charged with wire fraud, CNBC and others report. The company’s former president, Ramesh “Sunny” Balwani, was also indicted today by a grand jury.

These criminal charges are separate from the civil ones filed in March by the SEC and already settled. There are 11 charges; two are conspiracy to commit wire fraud (against investors, and against doctors and patients) and the remaining nine are actual wire fraud, with amounts ranging from the cost of a lab test to $100 million.

Theranos’s general counsel, David Taylor, has been appointed CEO. What duty the position actually entails in the crumbling enterprise is unclear. Holmes, meanwhile, remains chairman of the board.

The FBI Special Agent in Charge of the case against Theranos, John Bennett, said the company engaged in “a corporate conspiracy to defraud financial investors,” and “misled doctors and patients about the reliability of medical tests that endangered health and lives.”

This story is developing. I’ve asked Theranos for comment and will update if I hear back; indeed I’m not even sure anyone is there to respond.


Source: New feed

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