In June 2018, Theranos founder Elizabeth Holmes was indicted on nine counts of fraud and two counts of conspiracy to commit fraud, the Washington Post reported. Founded in 2003, Theranos, previously valued at $9 billion (according to Forbes), claimed to be able to perform a series of medical blood tests using just a small amount of blood from a patient’s finger. That claim, as well as the devices they allegedly used, turned out to be false, Wall Street Journal journalist John Carreyrou revealed.
Holmes trial after months of delay in US v. Holmes, et al. began in 2021 and ended in January 2022, with the jury finding her guilty on just four of 12 counts, according to Mercury News. Still, the outlet reported that Holmes could face up to 20 years in prison. But while it remains uncertain what the ruling means for Holmes’ future, the law has continued to catch up with another party involved – namely her former business partner and lover Sunny Balwani.
Sunny Balwani is guilty on all counts
After a 13-week trial, Sunny Balwani, a former Theranos executive, was found guilty of all 12 counts of fraud against him, according to The Guardian. Although Balwani was more or less an investor/employee of Theranos, prosecutors believe he wielded as much power over the company’s affairs as Holmes. “Mr. Balwani is not a victim,” prosecutor Jeff Schenk said during his closing arguments on ABC News. “He is a perpetrator of fraud.”
This, of course, is a far cry from Elizabeth Holmes’ conviction on four counts of fraud. While Holmes, who is due to be sentenced in September, was only convicted on investor-related charges, Balwani was found guilty of defrauding both investors and customers, according to ABC News.
Per Vanity Fair, the couple first met in 2002, and Balwani and Holmes began a romantic relationship just shortly after. He joined Theranos in 2009 as Chief Operations Officer, working closely with Holmes to reach out to investors and increase the company’s valuation. However, things between the two finally ended in 2016 in the heat of their legal troubles.