Elizabeth Holmes trial verdict live – What next for Ex-Theranos CEO found GUILTY of duping investors in fraud case
ELIZABETH Holmes was found guilty of defrauding Theranos investors on Monday, January 3, 2022.
The ex-CEO was found guilty on four counts and not guilty on four counts, while the jury remained deadlocked on three more charges.
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; wire fraud of former Cravath attorney Dan Mosley worth $6million; and wire fraud of the of $99million from Lakeshore Capital Management LP.
However, she was found not guilty of one count of conspiracy to commit wire fraud against Theranos paying patients, and three counts of wire fraud against Theranos paying patients.
Holmes was not taken into custody on Monday and now awaits a sentencing date, which will be set at a hearing next week on the three deadlocked charges.
The former businesswoman can appeal the conviction, her sentence, or both, according to . And the U.S. Probation Office will interview her.
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.
Read our Elizabeth Holmes live blog for the very latest news and updates...
Holmes 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.
Who is Elizabeth Holmes’ husband?
William “Billy” Evans, reportedly grew up near San Diego, California. He’s one of three children born to his parents, Susan and William L. Evans.
Evans attended the Massachusetts Institute of Technology, where he graduated in 2015 with a bachelor’s degree in economics.
During summers between school, Evans worked at various financial and consulting companies in California, according to his LinkedIn. He was also a student brand manager at Red Bull while at MIT.
The Evans family has lived in the San Diego area for generations. Billy Evans’ grandparents, Anne and William D. Evans, founded a hotel management group in 1953 called Evans Hotels.
The group manages three properties in the San Diego area.
Did Elizabeth Holmes fake her voice?
Elizabeth Holmes’ voice was been called into question, with former acquaintances suggesting its noticeable deep tone is not real.
One said out of the public eye it “lapsed into a more natural-sounding young woman’s voice."
It has been alleged she faked her tone to impress male business associates.
An ex-employee claimed she would occasionally slip into a higher-pitched voice at vocal events.
And Dr Phyllis Gardner, a professor from Stanford University where Holmes studied, told ABC Radio’s podcast : “When she came to me she didn’t have a low voice.”
But Holmes’ family claim her deep voice is natural and “not fake.”
‘A loss for Holmes’
The split verdicts are “a mixed bag for the prosecution, but it’s a loss for Elizabeth Holmes because she is going away to prison for at least a few years,” said David Ring, a lawyer who has been following the Holmes case closely.
Holmes’ defense
Defense attorney Lance Wade told the jury that Holmes was convinced at the time that she had recruited the "best businessman she knew" when she brought Balwani into the company, according to the Mail.
But that she regrets the decision years later and after the indictments.
“You will learn that Mr. Balwani did not take well to people who disagreed with him,” Wade said and blamed Balwani’s erratic behavior as the reason so many Theranos employees headed for the exit.
It was Balwani, Wade claimed, who was directly responsible for overseeing the Theranos lab that federal prosecutors claim spun misleading results of blood tests that put people’s lives in harm’s way.
How long did the jury deliberate?
The 37-year-old Holmes was found guilty on two counts of wire fraud and two counts of conspiracy to commit fraud on Monday after seven days of deliberation.
The jury's decision came after a three-month trial featuring dozens of witnesses — including Holmes herself — and numerous exhibits.
She now faces up to 20 years in prison for each guilty count, although legal experts say she is unlikely to receive anything close to the maximum sentence.
NOT guilty of four counts
The jury found Holmes not guilty of one count of conspiracy to commit wire fraud against Theranos paying patients, and three counts of wire fraud against Theranos paying patients
Holmes’ husband ‘shaken’
After the judge left the courtroom to meet with jurors individually, Holmes got up to hug Billy Evans and her parents before leaving with her lawyers.
Evans later emerged in the hallway outside the courtroom, looking visibly shaken and emotional.
Mistrial on three counts
The judge in Elizabeth Holmes’ trial declared a mistrial on the three counts the jury could not reach a unanimous verdict on.
Holmes showed no emotion
The former entrepreneur, who had bowed her head several times before the jury was polled by the judge, remained seated and expressed no visible emotion as the verdicts were read.
Her partner, Billy Evans, showed agitation in earlier moments but appeared calm during the verdict reading on Monday, January 3, 2022.
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 :
“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.”
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.
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.
How long did the trial take?
The trial began in September.
And took a total of four months, with 32 witnesses taking the stand.
Does Theranos still operate?
The company ceased operations in 2018, after its founder, Elizabeth Holmes, was indicted for wire fraud and conspiracy.
Theranos was founded in 2003, and its peak value was $10billion.
The company’s slogan was: “One tiny drop changes everything.”
Holmes’ defense
Defense attorney Lance Wade told the jury that Holmes was convinced at the time that she had recruited the “best businessman she knew” when she brought Balwani into the company, according to the Mail.
But that she regrets the decision years later and after the indictments.
“You will learn that Mr. Balwani did not take well to people who disagreed with him,” Wade said and blamed Balwani’s erratic behavior as the reason so many Theranos employees headed for the exit.
It was Balwani, Wade claimed, who was directly responsible for overseeing the Theranos lab that federal prosecutors claim spun misleading results of blood tests that put people’s lives in harm’s way.
Who is Sunny Balwani, continued
Balwani met Holmes while at Berkeley. She was 18 years old and a senior year in high school.
They reportedly started a romantic relationship the following year, after Holmes dropped out of Stanford University in March 2004 to start Theranos.
Balwani joined the company in 2009 and quickly rose up the ranks from vice president to chief operating officer.
Who is Sunny Balwani?
Ramesh “Sunny” Balwani is the former boyfriend of Elizabeth Holmes and the former chief of the blood-testing startup Theranos, Inc.
The 56-year-old American businessman is charged alongside Holmes with fraud and conspiracy for allegedly tricking investors and doctors to help fund the company, and providing false medical results to patients.
Balwani was born in 1965 in Pakistan to a Sindhi Hindu family who emigrated to the United States.
He studied information systems at the University of Texas at Austin.
Deadlocked on three charges
The jury could not agree on on a verdict for three of the 11 charges against Holmes.
The three counts were:
- Wire fraud against Theranos investors: wire transfer of $99,990 from Alan Jay Eisenman
- Wire fraud against Theranos investors: wire transfer of $5,349,900 from Black Diamond Ventures
- Wire fraud against Theranos investors: wire transfer of $4,875,000 from Hall Phoenix Inwood Ltd.
How long has Elizabeth Holmes been married?
Sources that Elizabeth Holmes and Billy Evans had a secret wedding in 2019.
News of the secret wedding came months after Bilton reported Holmes, 35, was engaged and living in San Francisco.
It was later revealed that Holmes’ fiancé was Evans. The couple , according to Elle, and were spotted attending Burning Man together in August 2018, days before Theranos shut down fully.
Holmes wears Evans’ signet ring from his alma mater MIT on a chain around her neck, according to the .
Who is Elizabeth Holmes’ husband?
William “Billy” Evans, reportedly grew up near San Diego, California. He’s one of three children born to his parents, Susan and William L. Evans.
Evans attended the Massachusetts Institute of Technology, where he graduated in 2015 with a bachelor’s degree in economics.
During summers between school, Evans worked at various financial and consulting companies in California, according to his LinkedIn. He was also a student brand manager at Red Bull while at MIT.
The Evans family has lived in the San Diego area for generations. Billy Evans’ grandparents, Anne and William D. Evans, founded a hotel management group in 1953 called Evans Hotels.
The group manages three properties in the San Diego area.
Did Elizabeth Holmes fake her voice, continued
An ex-employee claimed she would occasionally slip into a higher-pitched voice at vocal events.
And Dr Phyllis Gardner, a professor from Stanford University where Holmes studied, told ABC Radio’s podcast : “When she came to me she didn’t have a low voice.”
But Holmes’ family claim her deep voice is natural and “not fake.”
Did Elizabeth Holmes fake her voice?
Elizabeth Holmes’ voice has been called into question, with former acquaintances suggesting its noticeable deep tone is not real.
One said out of the public eye it “lapsed into a more natural-sounding young woman’s voice”.
It has been alleged she faked her tone to impress male business associates.
Who is Elizabeth Holmes?
Holmes is an American ex-businesswoman convicted of defrauding investors of Theranos, a blood-testing company she founded.
She was born in 1984 in Washington, D.C. but grew up in Houston, Texas.
Later she attended Stanford University where she studied chemical engineering.
Holmes had founded the blood-testing company in 2003 at the age of just 19.
She pitched 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.
In 2014, she was dubbed the world's youngest self-made female billionaire, boasting an estimated net worth of $4.5billion.
In 2016, after accusations of fraud came to light, Forbes revised its estimate of Holmes's net worth to zero.
Epic downfall
Holmes' downfall has been dissected in documentaries, books, podcasts and soon will be rehashed in a Hulu TV series called “The Dropout” starring Amanda Seyfried in the lead role.