US Files Criminal Charges Against Theranos's Elizabeth Holmes, Ramesh Balwani (wsj.com)

John Carreyrou, reporting for WSJ: Federal prosecutors filed criminal charges against Theranos founder Elizabeth Holmes and the blood-testing company's former No. 2 executive, alleging that they defrauded investors out of hundreds of millions of dollars and also defrauded doctors and patients. The indictments of Ms. Holmes and Ramesh "Sunny" Balwani, Theranos's former president and chief operating officer who was also Ms. Holmes's boyfriend, are the culmination of a two-and-a-half-year investigation by the U.S. attorney's office in San Francisco, sparked by articles in The Wall Street Journal that raised questions about the company's technology and practices. Ms. Holmes, 34 years old, and Mr. Balwani, 53, were charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud in an indictment handed up Thursday and unsealed Friday.

Comments

Re:Holmes a criminal? Who knew!

[moehoward]

I do tend to agree.... to an extent.

Yes, the stupid investors and idiots like Kissinger, Schultz, Boies, and Foege were complicit by lack of due diligence. For god's sake... Foege???? CDC director could not do basic science in his head to see this was a fraud???? Un-freak-ing believable. Boies??? Really? So, I don't see why these dudes are not indicted as well. They are not THAT stupid, but that seems to be exactly their stance. "I was too dumb to know it was a scam." Really....

On the investor's part. Yeah. Due diligence is part of the process. For them to get even a dollar from me as an investor, they would have to take a drop of blood from me and run 25 tests right in front of me on their Mystery Machine(tm). Any investor who didn't do so deserves to provide me with every dime they own. Suckers.