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Theranos founder charged in wire fraud scheme

Jaclyn Jaeger | June 19, 2018

A federal grand jury on June 14 indicted the former founder and chief operating officer of private healthcare and life sciences company, Theranos, arising from allegations that they engaged in a multimillion-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients. 

The stated mission of Theranos, which CEO Elizabeth Holmes founded in 2003, was to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data.

Theranos’ health took a turn for the worse in 2015, however, after a Wall Street Journal exposé called its claims into question, alleging that the company was not using its proprietary technology for most of the tests it offers. After the story broke, the Securities and Exchange Commission, the Department...

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