The former boyfriend and business partner of Elizabeth Holmes has been found guilty of multiple counts of wire fraud in connection with Theranos, the failed blood testing company she founded.
Ramesh “Sunny” Bałwani was convicted by a federal jury hearing the case of all 12 counts he faced, according to multiple published reports.
Holmes founded Theranos in 2003 while she was a Stanford student. The company grew to be a Silicon Valley favorite before questions emerged over its blood testing technology and other business practices.
What Happened to Elizabeth Holmes?
Holmes was convicted in January on four counts of fraud related to the operation. The jury found Holmes guilty on one count of conspiracy to commit wire fraud against Theranos investors and three counts of wire fraud against an investor.
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The prosecution has alleged that Holmes misled both patients and investors about whether the company’s technology could detect various medical diseases from just a few drops of blood.
In 2018, the company, which just four years earlier has an estimated value of $10 billion, collapsed. A Wall Street Journal investigation led by then-reporter John Carreyrou found that Theranos’ claims of a breakthrough blood testing device were false and it instead had used third-party machines.
Sunny Balwani and Elizabeth Holmes’ Relationship
Balwani and Holmes met in 2002, when he was 37, Insider reported. Holmes dropped out of Stanford to pursue Theranos about the same time she and Balwani became involved. He joined Theranos as president and COO in 2009, according to the report.
He faces a sentence of up to 20 years in prison, as well as a potential fine of up to $250,000 and requirements to make restitution to his victims, Insider reported.