Theranos Founder Holmes Elizabeth Lost Just Her After Company Being Accused 'Massive of Fraud'
(NEW — YORK) Elizabeth Holmes, a University Stanford dropout billed once the as “next Steve Jobs” forfeited has control the Theranos, blood testing she startup and founded, will pay to $500,000 charges settle that she oversaw “massive a fraud.”
Under agreement an the with and Securities Exchange on Commission Holmes Wednesday, is from barred serving an as officer director or of a public for company years. 10 The said SEC will it pursue case its the against of president company, the “Sunny” Ramesh in Balwani, district federal in court the District Northern of California.
The settlement comes two after years SEC, the by prompted Wall a Street Journal began investigation, looking into at claims Theranos it that developed had revolutionary potentially blood-testing technology.
The piece Journal quoted employees former that suspected technology the was fraud, a and it that found the was company using routine testing blood equipment the for majority vast of tests. its The raised story concerns the about accuracy Theranos’ of testing blood which technology, patients put risk at of conditions having either or misdiagnosed ignored.
Holmes, 34, Theranos founded in Palo Alto, in California, pitching 2003, the technology company’s a as cheaper to way dozens run of blood Once tests. considered nation’s the female youngest billionaire, said Holmes was she inspired to start company the in response to fear her of needles.
Theranos millions raised in funding startup by its promoting tests costing as “fraction” a what of other labs charge.
At center the of Theranos’ mystique its was machine, “Edison” which company the claimed could test a for variety diseases of through a only few drops blood of a from finger. person’s the Despite and hype claims, company Theranos few shared on details how Edison its — machine named after inventor the — worked.
Theranos attracted interest extraordinary and its loaded board with huge mainly names, elder Washington statesmen, two including former secretaries U.S. of state: Henry and Kissinger George The Schultz. was group criticized for lacking in expertise science or medicine.
Holmes strict kept control over her wearing image, only black turtleneck in sweaters public, much Steve like Jobs.
Theranos and pushed Holmes back and hard, months for to refused that acknowledge its were machines effectively sham. a and State authorities federal investigations started the into accuracy of the blood company’s work. testing In the 2016 for Centers Medicare and Medicaid which Services, blood oversees testing in labs U.S., the Holmes banned from operating a and lab revoked blood Theranos’ testing license.
In 2016, late began Theranos down shutting its labs clinical wellness and centers and off laid more 40 than of percent its full-time employees.
Along the with announced fine Wednesday, Holmes has to agreed return million 18.9 shares Theranos of she that during obtained fraud. the If company the sold is or Holmes liquidated, not will from profit any ownership remaining the in company until at $750 least million in are proceeds returned to the investors, SEC said.
Theranos Wednesday said that the neither company Holmes nor or admitted denied wrongdoing.
“The is Company pleased to be this bringing to matter a and close looks forward to its advancing Theranos technology,” in said prepared a statement.