Ramesh Former Theranos COO and CEO Sunny Balwani were found guilty on all twelve counts of fraud. According to news reports, a California Federal Court jury found Balwani guilty of wire fraud and conspiracy to commit wire fraud.
Sunny Balwani is the ex-boyfriend of Elizabeth Holmes, the founder of Theranos. He is also the former COO and president of the company. Balwani and Holmes founded the now-famous Theranos in 2003.
Balwani Fraud
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Authorities alleged that Holmes and Balwani lied about their company, stating that its equipment could run hundreds of medical tests with just a few droplets of patient blood. This attracted the financial interest of retail titans such as Walgreens and Safeway.
In March 2018, however, their lie was uncovered. Balwani and Holmes have been charged with major fraud and are suspected of stealing over $700 million from investors over a lengthy period of time.
The SEC accused them of making exaggerated and deceptive claims about the technological, business, and financial success of the company.
Despite the fact that Balwani has not yet been sentenced since he faces 12 separate accusations, he may receive a term comparable to or even longer than Holmes’.
Jeffrey Coopersmith, Sunny Balwani’s attorney, argued until the trial that his client had not committed fraud. He declared:
“Mr. Balwani committed no violations.” He did not deceive investors in Theranos, who were among the most sophisticated in the world”
Instead of deceiving clients, he worked tirelessly to ensure that they have access to their own health information. “Mr. Balwani is innocent and wants to defend his good name in court.”
He held Holmes accountable for Balwani’s capture:
“There’s no reason he wouldn’t have observed the same qualities: charisma, enthusiasm, vision, and a drive to improve diagnostic tests. And he had faith in this vision.”
Criminal defense attorney Andrey Spektor, who is not involved in the case, stated:
“Balwani led the laboratory for a time and shared Holmes’ interest in management. The government’s case against him was strengthened to some degree.”
Regarding Sunny Balwani
Balwani was Theranos’s second-highest-ranking employee. Holmes started the company. He was responsible for the daily activities.
In 2003, he met Holmes in Beijing when they were both Stanford undergraduates. Holmes was 19 years old, while he was 37 years old. They were also rumored to be in a romantic relationship.
During the beginning of the trial, Prosecutor Robert Leach stated:
“Ms. Holmes and Mr. Balwani worked together on nearly everything.”
Holmes was the public face of Theranos, but Balwani managed all operations. He made every choice and attended every meeting with investors. Early on, he was one of the company’s earliest investors, contributing $15 million.
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