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Theranos executives charged by SEC for 'massive fraud'

Joe Mont | March 14, 2018

The Securities and Exchange Commission, on Wednesday, charged Silicon Valley-based private company Theranos, its founder and CEO Elizabeth Holmes, and its former President Ramesh “Sunny” Balwani with raising more than $700 million from investors “through an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance.”

Theranos and Holmes have agreed to resolve the charges against them.  In addition to a penalty, Holmes has agreed to give up majority voting control over the company, as well as to a reduction of her equity which, combined with shares she previously returned, materially reduces her equity stake.

The complaints allege that Theranos, Holmes, and Balwani made numerous false and misleading statements in investor presentations, product demonstrations, and media articles by which...

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