Elizabeth Holmes, once a Silicon Valley star, guilty of fraud

Elizabeth Holmes, founder of the failed blood testing startup Theranos, was found guilty of four of 11 charges of fraud on Monday.

- San Jose: Elizabeth Holmes

San Jose: Elizabeth Holmes, founder of the failed blood testing startup Theranos, was found guilty of four of 11 charges of fraud on Monday, in a case that came to symbolise the pitfalls of Silicon Valley’s culture of hustle, hype and greed. Holmes, who had once promised to revolutionise healthcare, was the most prominent executive to field fraud accusations in a generation of high-flying, money-losing startups. A jury of eight men and four women took 50 hours over seven days of deliberations to reach a verdict, convicting her of three counts of wire fraud and one count of conspiracy to commit wire fraud by lying to investors to raise money for her company.

Holmes was found not guilty on four other counts related to defrauding patients who had used Theranos’ blood tests. The jury was unable to reach a verdict on three counts of deceiving investors, for which Judge Edward Davila of California’s Northern District said he planned to declare a mistrial. Each count carries a maximum sentence of 20 years in prison, terms that are likely to be served concurrently. Holmes, 37, is expected to appeal.