Elizabeth Holmes verdict: Guilty of four counts of defrauding investors through failed blood-testing company | January 7, 2022 | Palo Alto Weekly | Palo Alto Online |

Palo Alto Weekly

News - January 7, 2022

Elizabeth Holmes verdict: Guilty of four counts of defrauding investors through failed blood-testing company

Decision comes after a 14-week trial that captivated nation, put Silicon Valley's no-holds-barred entrepreneurial culture on trial

by Lloyd Lee, Jocelyn Dong and Jamey Padojino

After more than four months on trial, former Silicon Valley CEO Elizabeth Holmes has been found guilty of four counts of defrauding investors of nearly $145 million through her failed Palo Alto blood-testing startup, Theranos.

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Bay City News Service contributed to this report. Email Editorial Assistant Lloyd Lee at llee@paweekly.com.


Posted by Heckity
a resident of Barron Park
on Jan 4, 2022 at 3:29 pm

Heckity is a registered user.

Couldn't be happier, unless she was convicted of more of the counts against her. Any person who uses another person as the reason they defrauded investors, and falsified medical results, deserves serious jail time. I don't know Sunny Balwani or Elizabeth Holmes, but I think both of them need a good number of years in the slammer. Bye Felicia!

Posted by Mama
a resident of Crescent Park
on Jan 4, 2022 at 4:20 pm

Mama is a registered user.

Fantastic story…if you’re interested, be sure to read Bad Blood by terrific WSJ writer John Carreyrou.

Posted by JR
a resident of Palo Verde
on Jan 4, 2022 at 4:44 pm

JR is a registered user.

This verdict was not justified and will be overturned on appeal. Elizabeth is an amazing person and will have more success in her life than 100x muckraking journalists out to destroy startup companies like Theranos. You could easily write a hit piece on any startup and point out some flaws. The original Apple I didn't always work, the original Google sometimes crashed, etc. That doesn't mean they are terrible companies that deserve to be destroyed.

All this will result in is more startups staying in stealth mode and not talking to ANYONE. All it takes is one journalist with an agenda and your startup is toast. This is about old money Wall Street Journal coming to trash, destroy, and imprison those that actually build things in America.

Posted by Lynne Henderson
a resident of Mountain View
on Jan 4, 2022 at 5:47 pm

Lynne Henderson is a registered user.

I just wanted to thank the Palo Alto Weekly for having a better account about the substance of charges where the jury was unable to reach a verdict than the NYT, SF Chron, or AP. Without having the charges in front of me, it was difficult to know where the jury "hung" . . . not sure who the victims were or why they didn't find intent commit mail fraud, but at least I understand the prosecution's case may have been weaker for some charges and that the jury tried very hard to untangle months of knots.
Thank you again.

Posted by Menlo Mom
a resident of Menlo Park
on Jan 4, 2022 at 5:52 pm

Menlo Mom is a registered user.

JR: Muckraking journalists pursued the Epstein case until convictions were brought against Epstein and now Ghislane. It was journalist Julie K. Brown who stayed with that story until it was reopened (she also reported on horrific conditions for mentally ill prisoners in FL).

Also: if my phone glitches or my Google search turns up imperfect results, that doesn't affect my life. If a blood test causes me to make medical decisions based on the results, that's a different level of seriousness - and that's why Holmes and Balwani need to be help accountable.

Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Jan 4, 2022 at 6:28 pm

Online Name is a registered user.

@Menlo Mom, I totally agree with you. The fact that she wasn't found guilty of consumer fraud makes me wonder if the people who were told they had cancer, HIV, had a dangerous pregnancy etc. could sue for damages for emotional distress, trauma etc.

They had to have been traumatized by the wrong diagnoses and deserve something.

Posted by It.is.what.it.is
a resident of Another Palo Alto neighborhood
on Jan 5, 2022 at 12:36 am

It.is.what.it.is is a registered user.

My goodness, if she gets only 25 months, it's going to be a result of her white privilege. She was affecting peoples lives. Watch HBO's documentary: "The Inventor: Out for Blood in Silicon Valley" Web Link It's very well done, is not boring, and shows that there were mobsters harassing and threatening the employees who wanted to blow the whistle on the company. She is an evil woman and should not be allowed to serve the three 20 year terms concurrently. 60 years would be perfect.

Sure, Bernie Madoff stole people's money, but she stole people's health. Unforgivable.

Posted by jhskrh
a resident of Community Center
on Jan 5, 2022 at 7:07 am

jhskrh is a registered user.

Disgusted to think Holmes will get off with a slap on the wrist. She is a manipulative con artist. No bail, just her signature? I guess judge fell under her spell too. One bright spot. Betsy DeVos must be furious, scammed out of $100 million LOL. And what s legacy for Schultz.

Posted by Bystander
a resident of Another Palo Alto neighborhood
on Jan 5, 2022 at 10:27 am

Bystander is a registered user.

Without commenting particularly on this case, the news must send a chill to anyone starting up in Silicon Valley.

I wonder how many unethical practices have become standard when looking for funding and such funding is competitive. Cut throat business practices have often resulted in successful enterprises that quite often tidy up their act as they understand their responsibilities as role models. Facebook started as a means to rate women on college campus. Virgin started as an impetuous means to get stranded passengers to their Virgin Islands vacation destination. Fun to look back on, but none of these big names will be squeaky clean when looked at through a microscope.

Posted by Peter
a resident of Charleston Gardens
on Jan 5, 2022 at 3:25 pm

Peter is a registered user.

The whole "fake it 'til you make it" approach might work for vaperware, but not Healthcare.

Posted by TimR
a resident of Downtown North
on Jan 6, 2022 at 2:56 pm

TimR is a registered user.

I am a little surprised that the jury cared enough about rich people problems to convict her. But I believe there were two unique factors. One, this was a medical device, and the public, as well as the government, hold those to a much higher standard than some app that nobody actually cares about. And two, she abused the her heralded status of a young female entrepreneur. People gave her money because they wanted to help a woman, regardless of the project. And it seems she knew that, and used it as part of the scam. But absent those two factors, I don't think we'd even be reading about this case.

Posted by All Along the Watchtower
a resident of Old Palo Alto
on Jan 8, 2022 at 11:42 am

All Along the Watchtower is a registered user.

Regardless of what transpires following sentencing, Elizabeth Holmes' credibility as a scientist devoted to humanity is gone for good.

She will still be viewed by some as an intrepid entrepreneur as dollar signs speak volumes for those who lack a soul.

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