For those that didn’t see the headline yesterday, former Theranos CEO Elizabeth Holmes was found guilty on 4 counts of fraud and conspiracy after weeks of deliberation and a trial that almost ended with a deadlocked jury.
In a note jurors sent to the judge overseeing the Holmes trial on Monday morning, jurors said that they had been unable to reach a unanimous verdict on 3 of the 11 counts against Holmes, the WSJ reported, raising the specter of a hung jury.
But by the afternoon, the jury was able to return a unanimous decision.
Most surprisingly was that Holmes was found guilty of defrauding investors, but wasn’t found guilty of any charges involving defrauding patients. As the Wall Street Journal reported this morning, that is especially surprising given the nature of the testimony given by patients during the trial.
Among the testimony was stories from numerous patients describing test results that they believed were “simply wrong”, the Journal wrote. One such result told a woman she could be HIV positive; another incorrectly told a pregnant woman that she could be miscarrying.
Scientists from drug companies testified that Theranos’ technology was “unimpressive”, the Journal wrote. One even called Holmes “cagey”.
The trial exposed that the company was using its finger-prick method of testing for just 12 types of patient tests, despite claiming that it could run “more than 200 health tests” using their proprietary device.
Prosecutors during the trial argued that Holmes exposed both investors and patients to harm by peddling technology that didn’t work. In his closing statement, Assistant U.S. Attorney Jeff Schenk said of Holmes: “She chose to be dishonest with her investors and with patients. That choice was not only callous, it was criminal.”
Recall, we reported yesterday that Holmes had been found guilty on 4 charges, including one count of conspiracy and 3 wire fraud charges that can cost Holmes up to 20 years in prison (as well as a fine of $250,000 plus restitution), per count.
The jury found her not guilty of four other felony charges. On the three remaining charges, the jury was deadlocked.
1. Conspiracy to commit wire fraud against Theranos investors: Guilty
2. Conspiracy to commit wire fraud against Theranos paying patients: Not guilty
3. Wire fraud against Theranos investors: wire transfer of $99,990 from Alan Jay Eisenman: No verdict
4. Wire fraud against Theranos investors: wire transfer of $5,349,900 from Black Diamond Ventures: No verdict
5. Wire fraud against Theranos investors: wire transfer of $4,875,000 from Hall Phoenix Inwood Ltd.: No verdict
6. Wire fraud against Theranos investors: wire transfer of $38,336,632 from PFM Healthcare Master Fund: Guilty
7. Wire fraud against Theranos investors: wire transfer of $99,999,984 from Lakeshore Capital Management LP: Guilty
8. Wire fraud against Theranos investors: wire transfer of $5,999,997 from Mosley Family Holdings LLC: Guilty
9. Prosecutors dropped this count in November, after making an error that put the count in peril.
10. Wire fraud against Theranos paying patients: wire transmission of patient E.T.’s blood-test results: Not guilty
11. Wire fraud against Theranos paying patients: wire transmission of patient M.E.’s blood-test results: Not guilty
12. Wire fraud against Theranos paying patients: wire transfer of $1,126,661 used to purchase advertisements for Theranos Wellness Centers: Not guilty
Holmes remained seated and expressed no emotion as the verdicts were read. Her partner Billy Evans likewise remained still.
