Holmes faced fraud charges from "summary" of Bad Blood by JOHN. CARREYROU
Holmes faced fraud charges after it became clear that she had misled investors, patients, and business partners about the capabilities of Theranos's technology. The Securities and Exchange Commission (SEC) accused her of orchestrating an elaborate, years-long fraud. According to the SEC, Holmes and former Theranos president Ramesh "Sunny" Balwani deceived investors about the company's technology, business, and financial performance. They claimed that their blood-testing devices were able to conduct a full range of tests using just a few drops of blood when, in reality, the technology was unreliable and inaccurate. Holmes and Balwani allegedly raised more than $700 million from investors by making false claims about the company's technology and revenue. They also misled patients by promoting their blood tests as accurate and reliable, despite knowing that the results were often incorrect. Additionally, they deceived business partners by falsely claiming that their technology had been validated by the U. S. Food and Drug Administration (FDA) and was being used by the Department of Defense. The SEC's complaint detailed how Holmes and Balwani misled investors, patients, and business partners through a combination of false statements, exaggerated claims, and manipulated data. They were accused of engaging in a multi-million dollar scheme to defraud investors, patients, and doctors. The SEC alleged that they knew the technology was not capable of producing accurate and reliable results, yet they continued to promote it as such. Holmes and Balwani faced serious consequences for their actions. In addition to the SEC charges, they were also indicted on criminal charges of wire fraud and conspiracy to commit wire fraud. The criminal charges carried the potential for significant jail time and fines. The charges against Holmes and Balwani marked a dramatic downfall for the once-promising biotech company and its charismatic founder.
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