![]() September 2009: Ramesh “Sunny” Balwani joins Theranosīalwani guarantees a $10 million loan to Theranos and soon after takes on a formal role at the startup. The name is a combination of the words “therapy” and “diagnosis.” Holmes, a Stanford University sophomore studying chemical engineering, drops out of school to pursue her startup, Theranos, which she founded in 2003 at age 19. March 2004: Holmes drops out of Stanford to pursue Theranos ![]() Here are the highlights of the rise and fall of Theranos. (Balwani’s legal team has strongly denied the allegations in court filings.) Their trials were separated after Holmes indicated she would pursue a defense that included alleging she was the victim of a decade-long abusive relationship with Balwani that impacted every part of her life. In 2018, Holmes and Balwani were each charged with a dozen counts of wire fraud and conspiracy to commit wire fraud. Then came a Wall Street Journal investigation into the company, which called into question the company’s testing methods and the capabilities of its technology. With that promise, it attracted $945 million in financing, a board of well-known political figures and prominent retail partners. Theranos claimed its technology could accurately and efficiently test for conditions like cancer and diabetes with just a few drops of blood. Their trials marked the final chapter for Theranos, a startup once valued at $9 billion and lauded for its promise to upend the healthcare industry. Balwani, Theranos’ former president and COO who was also Holmes’ live-in boyfriend at the time, was found guilty on Thursday of ten counts of federal wire fraud and two counts of conspiracy to commit wire fraud. Holmes, the founder and former CEO of Theranos, was found guilty on four out of 11 federal fraud and conspiracy charges in January after a months-long trial. The judge is expected to make rulings on which evidence jurors can hear this week.Four years after the top two Theranos executives, Elizabeth Holmes and Ramesh “Sunny” Balwani, were first indicted together on a dozen federal fraud charges stemming from their time heading up the failed blood testing startup, both have been convicted by juries. Reality came crashing down in 2018 when the shortcomings and inaccuracies of Theranos were exposed by a Wall Street Journal investigation. Part of it was her own doing but when people put you on stage with VIPs it validates your brands." "Elizabeth was touted as the next Steve Jobs and was suddenly invited to sit on stage with Bill Clinton. "She became an immediate darling for a product that wasn't even on the market," the former executive said. Holmes' meteoric rise was captured in countless high-profile media appearances with world leaders, creating her image as a business celebrity. "It goes to her judgement and decision-making knowing the financial state the company was in." "Having, at one point, three assistants was not fiscally sound," says the former Theranos executive who asked not to be named. "She met dignitaries, politicians and other business leaders as a result, these things truly were benefits, intangible but benefits nonetheless and part of the fraudulent scheme."Īs she walked into the courthouse, Holmes refused to answer questions from CNBC's Scott Cohn on whether she's concerned to have her wealth on display.Ī former Theranos executive who was close to Holmes told CNBC the embattled CEO didn't see anything wrong with her spending while running the company on life support. Holmes "became a celebrity in Silicon Valley," said Bostic. Prosecutors say her spending more than kept pace and she was overtaken by her fame. Holmes' ownership stake in Theranos was valued at up to $4.5 billion. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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