Elizabeth Holmes, Founder of Theranos, Charged by SEC with Massive Fraud

Elizabeth Holmes, the funder of Theranos, has been called a number of things over the years such aswunderkind but never fraudster -- until today. The SEC charged her and Ramesh"Sunny" Balwani, president of Theranos, with massive fraud (see: Theranos CEO Holmes and former president Balwani charged with massive fraud). Below is an excerpt from the article:Elizabeth Holmes, founder of embattled blood testing start-up Theranos, has been charged with"massive fraud," the Securities and Exchange Commission ....The SEC alleged in a complaint that Theranos raised more than $700 million from late 2013 to 2015 while"deceiving investors by making it appear as if Theranos had successfully developed a commercially-ready portable blood analyzer that could perform a full range of laboratory tests from a small sample of blood." The SEC also said Theranos deceived investors by"hosting misleading technology demonstrations, and overstating the extent of Theranos' relationships with commercial partners," noting that at times Theranos' technology performed could only do about 12 tests of the over 200 tests advertised. The SEC also named former Theranos president Ramesh"Sunny" Balwani in its allegations, saying that Holmes and Balwani lied about the extent of Thernos' involvement with the military.Theranos was once considered a high-flying start-up, and Holmes graced major magazine covers, touted as the personification of inn...
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