Disgraced blood-testing startup Theranos charged with ‘massive’ fraud by SEC
Elizabeth Holmes and Ramesh Balwani, the former CEO and president of blood-testing startup Theranos, have been charged with what the Securities and Exchange Commission is calling a "massive fraud." The agency states that Holmes and Balwani engaged in "an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance," ultimately raising more than $700 million from investors.
Holmes and Balwani have agreed to a number of measures to settle the charges against them. In Holmes's case, that includes paying a $500,000 penalty, not serving as an officer or director of a public company for 10 years, relinquishing her equity in Theranos, and liquidating the shares that give her voting control over the company.
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Disgraced blood-testing startup Theranos charged with ‘massive’ fraud by SEC originally appeared on BGR.com on Wed, 14 Mar 2018 at 13:22:23 EDT. Please see our terms for use of feeds.