Theranos chief executive Elizabeth Holmes charged with massive fraud
Elizabeth Holmes, founder and CEO of Theranos, was charged by the Securities and Exchange Commission (SEC) with a massive fraud in which she and former Theranos president Ramesh “Sunny” Balwani allegedly deceived investors into believing that its portable blood analyzer could conduct comprehensive blood tests from finger drops of blood.
Holmes agreed to a $500,000 penalty and a 10-year ban on serving as an officer or director of a public company to settle the charges, but did not admit or deny the allegations. She is relinquishing shares and ceding her voting control of Theranos. She will not profit from her remaining ownership stake until money is recouped by other investors and shareholders.
