Share this @internewscast.com

The trial of Elizabeth Holmes, the once-lionized biotech founder whose fall from grace captured worldwide attention, is expected to finally commence Tuesday, more than three years after her blood-testing company Theranos was accused of massive fraud.

Holmes, 37, and her business partner Ramesh “Sunny” Balwani each face 10 counts of wire fraud and two counts of conspiracy to commit wire fraud, stemming from accusations that they willfully misled consumers and investors with a revolutionary blood testing technology that simply did not exist. The scheme skyrocketed Theranos’ valuation to a staggering $9 billion while allegedly defrauding investors and providing consumers with false medical reports.

Holmes and Balwani pleaded not guilty to all charges in 2018 after a federal grand jury elected to indict them. Holmes stepped down as Theranos’ CEO, but remained on the company’s board until its dissolution later that year.

The trial was slated to kick off in August 2020, but was delayed due to the COVID-19 pandemic, and then delayed again due to Holmes’ pregnancy. She gave birth to a baby boy last month.

The trial is expected to finally begin Tuesday with jury selection ― which could prove complicated, given how highly publicized the claims against Theranos have been for the past several years.

Following next week’s jury selection, Holmes is scheduled to stand trial on Sept. 8 in federal court in the Northern District of California. If convicted, she could be sentenced to up to 20 years in prison and face a fine of up to $3 million.

In 2015, questions began arising about the validity of Theranos’ machines, which claimed to be able to quickly test dozens of health metrics based on a single drop of blood ― something that typically takes several vials and a lot more time. The Wall Street Journal’s John Carreyrou led the charge, finding through his investigations that Theranos was allegedly running its blood tests on standard machines produced by other companies, and that nearly everything for which Holmes had earned so much acclaim was nothing but an elaborate scam.

That investigation, which would spawn a litany of documentaries, scripted movies, television series, podcasts and books, was the beginning of Holmes’ downfall. The companies that had partnered with Theranos to test their customers on the machines  ― Walgreens, Safeway and others ― eventually severed their partnerships with her, and some sued. A settlement she reached with the U.S. Securities and Exchange Commission over additional fraud allegations in 2018 barred her from serving as a director or officer of any public company for a decade.

The ordeal marked a stunning reverse of fortune for Holmes, who launched Theranos when she was 19 after dropping out of Stanford University. The story of a young, female entrepreneur who styled herself as the next Steve Jobs drew fawning media attention and high-profile investors, including Walmart founders the Walton family, media magnate Rupert Murdoch and former Education Secretary Betsy DeVos.

Many ex-government officials joined Theranos’ board, including former U.S. secretaries of state George Shultz and Henry Kissinger. Shultz’s grandson Tyler Shultz, once an employee at Theranos, was one of the whistleblowers who helped expose the company’s alleged fraud.

Holmes and Balwani, with whom she was once in a romantic relationship while running the company, agreed to stand trial separately. His proceedings are expected to start in January.

Source: huffpost

Share this @internewscast.com
You May Also Like

Shocking Crime in Kentucky: Couple Allegedly Throws Man from Balcony Leading to Tragic Death

A couple from Kentucky faces murder charges after allegedly causing the death…

Authorities Report Woman’s Attempt to Hire Hitman Targeting Mother and Stepfather

Background: The Outagamie County Government Center in Appleton, Wisconsin (Google Maps). Inset:…

Verdict Announced for Woman Accused of Fatal Encounter with Boyfriend

Left: Samantha Krebs (Outagamie County Jail). Right: Joseph “Joey” John Carnot (Obituary).…

Tragic Collision: Unmedicated Seizure Leads to Fatal Head-On Crash

Share A woman from New York has been sentenced over a year…

Pregnant Emma Baum Disappears: Family Urgently Seeks Help to Find Her

In the final stretch of her pregnancy, Emma Baum received surprising news…

Man Fatally Shoots Former Partner Shortly After She Reports Him for Stalking, Police Say

Inset, left to right: David E. Wright (Hennepin County Jail) and Mariah…

Lindsey Halligan Continues to Appear as Counsel on Multiple Cases

Inset: Lindsey Halligan, special assistant to the president, speaks with a reporter…

Shocking Child Neglect Case: Police Report Woman Starved Child for Five Days

Inset: Breashia J. Grant (Boone County Jail). Background: The area in Missouri…

Three Arrested for Brutal Flashlight Assault Resulting in Severe Head Injury, Police Report

From left: Weston Owen, Sara Bess and Kellar Weisgerber (Fruita Police Department).…

Chris Watts Deflects Blame Onto Wife Shannan Amid Revelations of Latest Affair

Shanann Rzucek never imagined that a random friend request would lead her…

Aide to State Senator Arrested for Allegedly Starting House Fire with Two People Inside

This week, a legislative aide to a North Carolina state senator found…

Virginia High School Football Coach Disappears Amidst Playoff-Bound Season, Prompting Arrest Warrant

Authorities in Virginia are actively searching for a high school football coach…