Former Theranos exec Ramesh Balwani convicted of fraud

Business

FILE – Ramesh “Sunny” Balwani, right, the former lover and business partner of Theranos CEO Elizabeth Holmes, walks into federal court in San Jose, Calif., Friday, June 24, 2022. Balwani was found guilty in Theranos blood-testing fraud case, Thursday, July 7. .(AP Photo/Michael Liedtke, File)

SAN JOSE, Calif. (AP) — A jury on Thursday convicted former Theranos executive Ramesh “Sunny” Balwani of collaborating with disgraced Theranos CEO Elizabeth Holmes in a massive fraud involving the blood-testing company that once enthralled Silicon Valley.

The 12 jurors found Balwani guilty on all 12 felony counts of defrauding both Theranos investors and the patients who relied on wildly unreliable blood tests that could have jeopardized their health.

Balwani sat expressionless as the verdicts were read.

The outcome puts Balwani and Holmes in similar situations. Holmes was convicted on four counts of investor fraud and conspiracy earlier this year. During that trial, Holmes tearfully accused Balwani of sexually and emotionally abusing her while they were lovers. An attorney for Balwani has vehemently denied those charges.

Both Holmes, 38, and Balwani, 57, face up to 20 years in prison.

Holmes is scheduled to be sentenced in late September. The date of Balwani’s sentencing is expected to be set in the coming days.

The dual convictions represent a resounding victory for federal prosecutors, who seized on the Theranos case as a rare opportunity to hold ambitious entrepreneurs accountable for engaging in technological hyperbole while pursuing fame and fortune. In the process, they hoped to discourage the practice of making bold and unproven promises about still-nascent products — a startup strategy known as “fake it until you make it.”

Copyright 2022 Associated Press. All rights reserved.

© 1998 - 2022 Nexstar Media Inc. | All Rights Reserved.

Trending on NewsNation

Elections 2022

More Elections 2022