Money & Power

Theranos Scandal: Founder Faces Criminal Charges, But She Insists She's Not Guilty

Here's an update on what the disgraced Theranos founder has been up to-from the ongoing legal proceedings to her new fiancé.
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  • Theranos founder Elizabeth Holmes is once again facing public scrutiny, thanks to a podcast from ABC News, and a much-hyped HBO documentary premiering tonight.
  • Holmes is currently awaiting a criminal trial—here are the details on what she's up against, and how she's been spending her days in the meantime.

    Elizabeth Holmes was once touted as a trailblazing CEO, with a Forbes-estimated net worth of $4.5 billion. Her company, Theranos, was hailed as revolutionary for the health industry.

    Thanks to some dogged reporting by the Wall Street Journal's John Carreyrou, and subsequent investigations by the FBI, DOJ, and SEC, that's all gone up in smoke.

    For better or worse, Holmes's story is far from over—and due to ABC News's podcast The Dropout and HBO's documentary The Inventor: Out for Blood in Silicon Valley, there's a renewed interest in just what the once-beloved Theranos founder is up to these days. Below, everything we know about Holmes, from her ongoing legal proceedings to her new fiancé.

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    HOLMES HAS BEEN CHARGED BY BOTH THE DEPARTMENT OF JUSTICE AND THE SECURITIES AND EXCHANGE COMMISSION.

    In June of 2018, the DOJ charged Holmes and Theranos's former COO, Ramesh "Sunny" Balwani, with 11 criminal felony counts—and there could be more coming. Assistant U.S. Attorney John C. Bostic told Vanity Fair that the "story is bigger than what’s captured in the [original] indictment," and it "doesn’t capture all the criminal conduct."

    The SEC also charged Holmes and Balwani with "raising more than $700 million from investors through an elaborate, years-long fraud." Holmes chose to settle for $500,000, and agreed not to serve as an officer or director of a public company for 10 years. Balwani opted to fight the charges in court; the trial has yet to take place.


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    Elizabeth Holmes speaks at the Fortune Global Forum in November 2015.

    THE TRIAL HAS YET TO TAKE PLACE.

    A date has not yet been set for Holmes and Balwani's trial. Neither have publicly admitted to any wrongdoing, and both have pleaded not guilty. If convicted, they each face up to 20 years in prison.

    Per ABC News, Holmes and Balwani are both expected to appear in a San Francisco court for a status hearing on April 22.


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    Ramesh Balwani leaves a federal court in San Jose on January 14, 2019.

    WHAT ELSE SHE'S UP TO

    According to Vanity Fair, Holmes is living in a luxury apartment in San Francisco. She's engaged—to a "hospitality heir"—and is reportedly "chirpy" and "chipper," despite it all.

    And job-wise? It seems that Holmes is keen on founding a new company. "Last I heard about Elizabeth Holmes is that she is currently in Silicon Valley trying to start a new company and seeking funding for it," a source told ABC News.

    *This article originally appeared on Townandcountrymag.com

    *Minor edits have been made by the Townandcountry.ph editors

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