On Thursday, a jury convicted Ramesh Balwani, a former executive at Theranos, of conspiring with Elizabeth Holmes (disgraced CEO of Theranos) in committing frauds involving Theranos’ blood-testing business that once fascinated Silicon Valley.
The 12 jurors found Balwani guilty of all 12 felonies, including defrauding Theranos investors as well as patients who relied upon wildly inaccurate blood tests that could have endangered their health.
Balwani watched intently as the verdicts were read and blinked frequently.
Balwani’s and Holmes are now in similar circumstances. Holmes was convicted earlier this year on four counts each of investor fraud and conspiracy. Holmes cried during that trial and accused Balwani, of sexually emotional abuse while they were together. Balwani’s attorney has strongly denied these charges.
Holmes, 38, as well as Balwani (57), could face 20 years imprisonment.
Holmes is expected to be sentenced in September. Balwani’s sentencing date is expected to be announced in the next few days.
Federal prosecutors won a major victory with the two convictions. They used Theranos as an opportunity to hold ambitious entrepreneurs responsible for using technology hyperbole in pursuit of fame and fortune. They hoped to discourage bold, unproven promises of still-nascent products aEUR,” a startup strategy called “fake until you make it.”
Balwani, after the verdicts had been read and the jury dismissed, walked over to his brothers who were seated behind him for what seemed to be a solemn conversation. They sat silently, their heads bowing.
