SAN JOSE, California – Ramesh Balwani, the former chief executive of Theranos, was convicted Thursday of 12 counts of fraud, a verdict that was more serious than his co-conspirator, Elizabeth Holmes, and consolidated failed blood. – Start-up testing as the ultimate Silicon Valley warning story.
Mr. Balwani and Mrs. Holmes, who together pushed Theranos to new heights with a promise to revolutionize healthcare, are the most prominent technology executives in a generation accused of fraud and convicted. A jury of five men and seven women took 32 hours to give a verdict, convicting Mr. Balwani, also known as Sunny, of 10 counts of wire fraud and two counts of conspiracy to commit wire fraud.
Mrs Holmes was convicted of four counts of fraud in January and four were acquitted; The other three charges were dismissed after the jury failed to reach a consensus. He has appealed against the verdict and Mr Balwani is expected to do the same.
In both cases there is a complete digestive tract to see if they have exaggerated the power of the Theranos blood-testing machine to appeal to investors and consumers, when the products did not actually work.
Each count carries a maximum sentence of 20 years in prison. Mr Balwani and Miss Holmes are expected to be sentenced together in September.
This is a developing story. Check back for updates.
Callie Huang Contributing Reporting.