ISTOCK, BET_NOIRE
The Securities and Exchange Commission (SEC) charged diagnostics company Theranos, its founder and CEO Elizabeth Holmes, and its former president Ramesh Balwani with engaging in “an elaborate, years-long fraud” to raise more than $700 million from investors, according to statement released today (March 14).
The SEC accuses Theranos, Holmes, and Balwani of making “numerous false and misleading statements” to investors and media. It alleges that in addition to falsely asserting that its portable blood analyzer could perform comprehensive tests from single blood drops, the company presented results from other manufacturers’ analyzers as its own and made a number of untruthful claims about users and revenues. For example, Theranos stated that the US Department of Defense (DoD) used its products in Afghanistan, although the DoD never ...
