Tuesday 31 August 2021

Jury selection begins for trial of Theranos founder Elizabeth Holmes

SAN JOSE, Calif. (KRON) -- Elizabeth Holmes, the founder of a Silicon Valley startup, is on trial starting Tuesday for charges related to an alleged multi-million dollar fraud scheme.

Jury selection is underway on Tuesday in San Jose at the federal courthouse.

She was charged in 2018 for allegedly defrauding investors, doctors and the public using her blood-testing company, Theranos.

Holmes and the company's former Chief Operating Officer, Ramesh “Sunny” Balwani, are both charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud, according to the U.S. Attorney's Office, Northern District of California.

The indictment alleges that Holmes and Balwani "engaged in a multi-million-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients.  Both schemes involved efforts to promote Theranos."

The government alleges that Holmes and Balwani knew Theranos "was not capable of consistently producing accurate and reliable results for certain blood tests," but pushed for funding from investors and advertising anyway, the attorney's office said.

If convicted, Holmes could face a maximum 20-year prison sentence. Balwani's trial starts January 2022.



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