In 2018, the United States charged Elizabeth Holmes and her enterprise accomplice, Ramesh “Sunny” Balwani, with 9 counts of wire fraud and two counts of conspiracy to commit wire fraud.

The indictment accuses the pair of partaking in a “scheme, plan and artifice to defraud investors as to a material matter.”

In different phrases, they’re accused of mendacity about Theranos’s enterprise and know-how to get cash. The lies outlined within the indictment embrace claims Theranos made about its relationship with the navy and the standing of its partnership with Walgreens. Prosecutors additionally say that Theranos faked demonstrations of its know-how and falsified validation studies from pharmaceutical corporations and the monetary well being of its enterprise.

Wire fraud is a felony that carries a most penalty of 20 years and potential fines. Theranos additionally paid a $500,000 advantageous to settle civil securities fraud prices with the Securities and Exchange Commission in 2018. It additionally settled a number of lawsuits with traders and companions earlier than dissolving that yr.

Since the legal indictment, the instances of Ms. Holmes and Mr. Balwani have been separated. Mr. Balwani faces trial subsequent yr. Further, a few of the prices towards Ms. Holmes have been dropped and others added. As of at this time, Ms. Holmes faces 11 counts of fraud and conspiracy to commit fraud.

She has pleaded not responsible.

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