Badcopnews.com – Theranos startup founder, Elizabeth Holmes and former president of the company, Ramesh Balwani is reportedly charged with fraud for allegedly making false claims about the effectiveness of blood testing at his company.
Quoted from The Guardian, Monday (18/06/2018), an FBI angen, John Bannett said, his company to conspire to deceive investors.
“The charges accuse companies of conspiring to cheat financial investors,” he said.
He also said that this conspiracy has misled doctors and patients about the reliability of medical tests that could harm health and life.
“This conspiracy misleads doctors and patients about the reliability of medical tests that endanger health and life.” he added.
They were charged with two counts of conspiracy to commit wire fraud and nine wire fraud allegations. Both were released on bail of $ 500,000 and ordered to submit their passports.
Theranos was founded in 2003 with the aim of revolutionizing blood tests. It received brilliant media coverage and raised more than $ 700 million from investors with the promise that they have created a machine that can perform hundreds of lab tests from a single fingerprint. The test was launched at Walgreens stores in California and Arizona and the company’s valuation jumped to $ 9 billion.