Just yesterday we heard that the jury in Elizabeth Holmes’ case was deadlocked on three out of the 11 federal charges against her. It seemed like the former Theranos founder, who defrauded investors out of nearly a billion dollars and put patients at risk, was going to skate. The good news is that the jury went back into deliberations and returned with guilty verdicts on four charges, the ones related to defrauding investors. She was not found guilty on the charges of defrauding patients and the jury returned no verdict on three charges. The judge will have to issue a ruling on those. Holmes could get up to 20 years in prison and steep fines. (She is facing 20 years on each charge, but the NY Times reports that the sentences will likely be concurrent.)
Elizabeth Holmes, the former CEO and founder of failed blood testing startup Theranos, was found guilty on four charges of defrauding investors, capping off the stunning downfall of a former tech icon.
She was found not guilty on three additional charges concerning defrauding patients and one charge of conspiracy to defraud patients. The jury returned no verdict on three of the charges concerning defrauding investors, and Judge Edward Davila, who is presiding over the case, is expected to declare a mistrial on those charges.
The charges Holmes was found guilty of include one count of conspiracy to defraud investors, as well as three wire fraud counts tied to specific investors. Holmes faces up to 20 years in prison as well as a fine of $250,000 plus restitution for each count.
Holmes departed the courthouse hand-in-hand with her partner, Billy Evans, her mother and her father. She was met with a sea of cameras and reporters but did not comment in response to questions shouted from reporters.
In a statement, U.S. Attorney Stephanie Hinds applauded the verdict.
“The jurors in this 15-week trial navigated a complex case amid a pandemic and scheduling obstacles,” she said, in a statement that was read aloud by a spokesperson outside the courthouse. “The guilty verdicts in this case reflect Ms. Holmes’ culpability in this large-scale investor fraud, and she must now face sentencing for her crimes.”
Holmes, 37, had a son last July with a 29-year-old hotel heir named Billy Evans whom she reportedly married in 2019, which has not been confirmed. I was hoping that Holmes would be convicted on more counts, but this is more than I expected, especially after she cried on the stand and tried to blame her ex partner, Sunny Balwani, for her crimes. Hopefully she’ll get the maximum sentence. This should serve as a warning for other charismatic would-be entrepreneurs who want to claim that they’ve revolutionized science and technology with little to no experience in either.