Here’s how the jury found on the 11 charges against Elizabeth Holmes – Silicon Valley

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In a split verdict, Theranos founder Elizabeth Holmes was found guilty of four of the 11 criminal charges she faced related to the crash of her failed blood-testing start-up Theranos, and not guilty of four additional counts. A mistrial was declared on three other counts.

Holmes and her former business and romantic partner, Sunny Balwani, were charged with nine counts of wire fraud and two counts of conspiracy to commit wire fraud — felony charges that essentially accuse them of knowingly lying about Theranos’ technology to defraud investors and patients, including by making false statements and promises about the capabilities of company’s blood testing machines, and about its partnerships with companies like Walgreens, major pharmaceutical firms, and the Department of Defense. Balwani will face trial on the same charges next year.

Each fraud charge carries up to 20 years in prison.  Here’s how the jury found on each of the counts against Holmes:

1. GUILTY of conspiracy to commit wire fraud against Theranos investors. This charge accused Holmes and Balwani of “knowingly and intentionally” soliciting payments from investors with false statements about Theranos’ technology, its business partnerships, and its financial model.

2. NOT GUILTY of conspiracy to commit wire fraud against Theranos’ paying patients. This charge relates to the allegedly false representations Holmes and Balwani made to Theranos’ patients about the accuracy and reliability of the company’s blood tests.

3. NO VERDICT on count of wire fraud against Theranos investors, in connection with a wire transfer of $99,990 made by Theranos investor Alan Eisenman. Eisenman — a retired Texas money manager who put $1.1 million into Theranos, including the $99,990 investment in December 2013 — bitterly testified against Holmes during the trial, saying she led him to believe that “this was a company that had proven itself, was successful,” but that he grew frustrated by Holmes’ unwillingness to provide information about her company.

4. NO VERDICT on count of wire fraud against Theranos investors in connection with a $5,349,900 wire transfer from Black Diamond Ventures, a Los Angeles-based venture capital firm. Managing director Christopher Lucas testified that Holmes told him her startup’s blood analyzers were being used to treat soldiers in the battlefield — a claim that turned out to be false.

5. NO VERDICT on count of wire fraud against Theranos investors in connection with a 2013 wire transfer of $4,875,000 from the Hall Group, a Texas investment firm. John Tolbert, vice-president of finance at the firm, testified that Holmes’ statements to investors in a 2013 conference call convinced him that Theranos was doing work in Afghanistan. Her claims that Theranos technology could “run any combination of lab tests” from “tiny” blood samples persuaded the Hall Group — which had invested $2 million in the startup in 2006 — to make another investment. Jurors heard that Theranos often relied on vein-drawn blood, rather than its touted finger-stick-drawn blood, and that its own machines could run only a dozen tests while suffering from serious accuracy problems.

6. GUILTY of wire fraud against Theranos investors in connection with a 2014 wire transfer of $38,336,632 made by the San Francisco investment firm PFM Health Sciences. Brian Grossman, PFM’s chief investment officer, testified that Holmes had been “very clear” that her company could “match every test” performed by competitors Labcorp and Quest, although prosecutors allege Theranos’ own machines could only perform a dozen tests. Grossman also said his team was told the startup had brought in more than $200 million in revenue, “mostly from the Department of Defense;” Theranos’ former head of accounting testified earlier that 2011 revenue came in at $518,000 and that the company had no revenue in 2012 or 2013.

7. GUILTY of wire fraud against Theranos investors in connection with an October 2014 wire transfer of $99,999,984 made by an investment firm associated with the family office of former Education Secretary Betsy DeVos. Investment manager Lisa Peterson testified that Holmes, while courting the DeVos family as potential investors, claimed Theranos’ technology was in use “on military helicopters,” and sent a report with a Pfizer logo touting the “superior performance” and accuracy of Theranos’ machines. The logo, Peterson said, led her to conclude that the report was prepared by Pfizer. “We asked questions and we got answers that we were satisfied with, that were different than what came out later,” Peterson testified.

8. GUILTY of wire fraud against Theranos investors in connection with an October 2014 wire transfer of $5,999,997 from a company of Daniel Mosely, the long-time lawyer for former U.S. Secretary of State Henry Kissinger. Mosely testified that he also believed that Theranos’ report with the stolen Pfizer logo indicated the pharmaceutical firm had approved Theranos’ technology. In a letter to Kissinger, he said, he called the report “the most extensive evidence supplied regarding the reliability of the Theranos technology and its applications.”

9. NOT GUILTY of wire fraud against Theranos patients. This count relates to the wire transfer of lab test results from Erin Tompkins, a patient in Phoenix who testified that she received false results from a Theranos blood test indicating she may have HIV.

11. NOT GUILTY of wire fraud against Theranos patients. This count relates to the wire transfer of results from two Theranos lab tests for an Arizona patient which falsely indicated possible prostate cancer.

12. NOT GUILTY of the charge of wire fraud against Theranos patients in connection with a wire transfer of $1,126,661 that Theranos made to Horizon Media in August 2015. Former Theranos financial chief So Han Spivey testified that the transfer was payment for marketing and advertising for the launch of Theranos’ services at Walgreens drug stores.



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