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

Porsche Driver Allegedly Shoots Man Over Delay in Parking, Police Say

Background: The Wynwood Boutique building in Wynwood, Florida (Google Maps). Inset: Anthony…

Five Individuals, Including Ex-Guard, Accused in Texas Inmate’s Death

In total, five individuals, consisting of four inmates and a guard, face…

Gamer Accused in Daughter’s Hot Car Death Allowed Family Trip to Hawaii

A man from Arizona, who is accused of first-degree murder in the…

Erika Sandoval Found Guilty of Killing Daniel Green

Erika Sandoval (KFSN). A woman who unlawfully entered her ex-husband’s residence, seized…

Legal Experts Criticize Trump for Halting Habeas Corpus

Inset: Stephen Miller responds to immigration inquiries (C-SPAN). Background: President Donald Trump…

High School Hazing Incident Backfires: District Attorney Urges Involved Students to Surrender

In Syracuse, New York, a group of five younger students on the…

Kahleb Collins: Missing Alabama Toddler’s Remains Discovered in ‘Burn Pile’ at Family Residence

Remains believed to belong to an Alabama toddler who disappeared last year…

Father Accused of Killing Toddler Set for Hawaiian Holiday

Inset: Christopher Scholtes (Pima County Jail). Background: The scene outside the residence…

Diddy Trial Judge Postpones Jury Selection Due to Juror Hesitation

The judge overseeing Sean “Diddy” Combs’ sex-trafficking trial temporarily paused jury selection…

Mushroom Cook Shares Daughter’s Lunch Leftovers

Mushroom cook Erin Patterson ate leftovers from the death-cap mushroom-laced lunch with…

Unlicensed Childcare Provider Receives Sentence for Poisoning Infant

Dixie Denise Villa and Abigail Lobisch (Hawaii News Now). A woman operating…

Arrest Made Following Discovery of Body in Sydney’s Western Suburb Granny Flat

A 31-year-old man has been arrested after the body of a 65-year-old…