A wrongful trial has been officially countered for three cases of wire transfer fraud. explained Elizabeth Holmes, the founder of the failed blood test startup Theranos, according to a federal court Submission approved on Tuesday.
Mrs. Holmes, 37, was found guilty on monday from three counts remittance fraud charges and a remittance fraud conspiracy charge for lying to investors in order to raise money for their business. She was found not guilty on four counts for betraying Theranos’ patient.
The three counts posted were related to investments made by three Theranos investors who said Ms. Holmes had misled them. The jury said on Monday that they could not agree on judgments on these points. A hearing takes place next week to discuss those charges which prosecutors may decide to try again.
Mrs. Holmes – a Stanford University dropout and one-time start-up darling turned Silicon Valley outcast – is also expected to receive a sentencing date at next week’s hearing for the charges on which she was convicted. Any transfer fraud count is punishable by a maximum penalty of 20 years in prison. Ms. Holmes may appeal her conviction, the conviction, or both.
The hung counts came after a Jury made up of eight men and four women spent 50 hours in seven days deliberating a judgment. On Monday, they twice notified Judge Edward J. Davila of the United States District Court for the Northern District of California, who was chairing the case, that they stuck on the three counts against Mrs. Holmes. Instead, judgments were made on the other eight counts.
The three counts hung related to investors Alan Eisenman, Chris Lucas of Black Diamond Ventures, and Bryan Tolbert of Hall Group. Everyone had invested in Theranos, with some of their transactions forming the basis of three wire transfer fraud cases.
Mr. Eisenman testified that he believed Ms. Holmes was hiding information from him. Mr. Lucas testified that Ms. Holmes was his main source of information about Theranos. Mr Tolbert said in court that he supported Theranos in believing that their technology was ready for use.
In total, Theranos raised $ 945 million from investors during its term. Those investments were wiped out after the company’s blood tests – which should be able to detect various conditions by looking at a few drops of a patient’s blood – were found to have failed.