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Former Theranos exec Ramesh Balwani convicted of fraud

SAN JOSE,Calif. — A jury on Thursday condemned former Theranos superintendent Ramesh “ Sunny ” Balwani of uniting with disgraced Theranos CEO Elizabeth Holmes in a massive fraud involving the blood– testing company that formerly enthralled Silicon Valley.

The 12 jurors set up Balwani shamefaced on all 12 felony counts of defrauding both Theranos investors and the cases who reckoned on hectically unreliable blood tests that could have jeopardized their health.

Balwani sat impassively as the verdicts were read in a San Jose, California, courtblinking constantly but infrequently looking at the seven women and five men who condemned him.

The outgrowth puts Balwani and Holmes in analogous situations. Holmes was condemned on four counts of investor fraud and conspiracy before this time. During that trial, Holmes tearfully indicted Balwani of sexually and emotionally abusing her while the two were romantically involved. An attorney for Balwani has vehemently denied those charges.
Both Holmes, 38, and Balwani, 57, face up to 20 times in captivity.

After the verdicts,U.S. District Judge Edward Davila raised Balwani’s bail to$,000 from$,000 and setNov. 15 as his sentencing date. Holmes, who’s free on$,000 bail, is listed to be doomedSept. 26.

The binary persuasions represent a resounding palm for civil prosecutors, who seized on the Theranos case as a rare occasion to hold ambitious entrepreneurs responsible for engaging in technological embroidery while pursuing fame and fortune. In the process, they hoped to discourage the practice of making bold and unproven pledges about still incipient products— a incipiency strategy known as “ fake it until you make it. ”

“ We’re gratified by the jury’s hard work and alertness to the substantiation presented. We appreciate the verdict and look forward to the sentencing proceedings, ”U.S. Attorney Stephanie Hinds said outside the courthouse.
Balwani did n’t respond to requests for comment as he left court with his legal platoon.

After the verdicts were read and the jury was dismissed, Balwani walked over to his two sisters who were sitting behind him for what appeared to be a solemn discussion. The three stood stillheads bowed.

While Holmes insinuated during her trial that Balwani manipulated her into making poor choices, Balwani’s attorneys explicitly sought to shift all the blame for any misconduct exactly on Holmes.

As part of Balwani’s defense, the attorneys refocused out that Holmes wasn’t only CEO, but also a Silicon Valley star who converted investors to pour nearly$ 1 billion into Theranos. Holmes boasted that her company had set up a way to overlook for hundreds of implicit conditions with a device called the Edison that could test just a many drops of blood taken with a cutlet burrow similar technology could potentially revise healthcare.
But it turned out that the Edison noway worked dulyfurnishing defective test results that Theranos conducted as part of a deal to set up mini labs in Walgreen’s apothecaries. The excrescencies in Theranos ’ vaunted technology urged Holmes and Balwani to shift their testing to conventional machines made by other merchandisers and while drawing vials of blood from cases ’ modes — a far cry from Holmes ’ promises.

After committing about$ 15 million of his own plutocrat to bolster Theranos and also getting the company’s principal operating officer in 2010, Balwani ultimately oversaw the blood– testing lab that was delivering the inaccurate results and supervised the Walgreen’s deal. That pivotal detail may have told the jury to condemn him of defrauding cases while another jury acquitted Holmes on the same charges.

Balwani also prepared numerous of the protrusions about Theranos ’ unborn profit that helped the company raise plutocrat from investors Those vaticinations proved to be grossly inflated.

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Unlike Holmes, who spent seven days on the substantiation stand during her trial, Balwani did n’t swear in his own defense. After Holmes ’ trial, jurors who were canvassed by the media said they set up her to be likeable if not entirely believable.

“ The reason he did n’t swear is presumably because he knows he does n’t have Elizabeth’s seductiveness, ” said Jill Huntley Taylor, a longtime jury adviser who also assists with trial strategy.

Balwani’s decision not to tell his side of the story left jurors to make their decision grounded solely on the substantiation, which included evidence from substantiations who depicted him as an frequently abrasive superintendent.

“ Just because the jurors did n’t hear from Balwani did n’t mean they could n’t form opinions of him, ” Huntley Taylor said.
Balwani’s defense imaged Holmes’s in one crucial aspect Both depicted the brace as inexhaustible workers who believed so deeply in Theranos ’ technology that they noway vended their separate stakes in the Palo Alto, California, company. At one point in 2014, Holmes ’ fortune was estimated at$4.5 billion while Balwani’s Theranos effects were valued at$ 500 million.

But everything began to unravel in late 2015 after a series of explosive papers in The Wall Street Journal exposed rampant problems with Theranos ’ technology. By May 2016, Holmes had ditched Balwani as her business and romantic mate. Holmes is now the mama 

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