Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Needmore seats to Win
Needmore seats to Win
3-min read

Indian-American Indicted for Multi-Million Dollar Fraud Scheme in US

Ramesh “Sunny” Balwani, 53, and Elizabeth Holmes, 34, were charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud.


Updated:June 16, 2018, 10:28 AM IST
Indian-American Indicted for Multi-Million Dollar Fraud Scheme in US
Image for representation.
New York: An Indian-American former president of a blood-testing company along with its founder has been charged in the US for allegedly engaging in a multi-million dollar scheme to defraud investors, doctors and patients by making false claims about the accuracy of their much-hyped testing devices.

Ramesh “Sunny” Balwani, 53, and Elizabeth Holmes, 34, were charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud and appeared on Friday before US Magistrate Judge Susan van Keulen in San Jose for their initial appearances, Acting United States Attorney Alex Tse said.

According to the indictment unsealed, the charges stem from allegations that Holmes and Balwani engaged in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients. Both schemes involved efforts to promote Palo Alto-based company Theranos.

Holmes founded Theranos in 2003 as a private health care and life sciences company aimed at revolutionising medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data.

Balwani, a former boyfriend of Holmes, was employed at Theranos from September of 2009 through 2016.
At times during that period, Balwani worked in several capacities including as a member of the company’s board of directors, as its president, and as its chief operating officer.

According to the indictment, Holmes and Balwani used advertisements and solicitations to encourage and induce doctors and patients to use Theranos’s blood testing laboratory services, even though they knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests.

The tests performed on Theranos technology, in addition, were likely to contain inaccurate and unreliable results.

The indictment alleges that the two used a combination of direct communications, marketing materials, statements to the media, financial statements, models, and other information to defraud potential investors.

Specifically, they claimed that Theranos developed a revolutionary and proprietary analyser, which could perform a full range of clinical tests using small blood samples drawn from a finger stick.

Holmes and Balwani represented that the analyser could produce results that were more accurate and reliable than those yielded by conventional methodsall at a faster speed than previously possible.

Holmes and Balwani knew that many of their representations about the analyser were false and that the analyser had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines.

Authorities said Holmes and Balwani not only defrauded investors, but also consumers who trusted and relied upon their allegedly-revolutionary blood-testing technology.

“This indictment alleges a corporate conspiracy to defraud financial investors,” Federal Bureau of Investigation (FBI) Special Agent in Charge John Bennett said.

“This conspiracy misled doctors and patients about the reliability of medical tests that endangered health and lives.”

The indictment further alleges that Holmes and Balwani defrauded doctors and patients by making false claims concerning Theranos’s ability to provide accurate, fast, reliable, and cheap blood tests and test results, and through omissions concerning the limits of and problems with Theranos's technologies.

The defendants knew that Theranos was not capable of consistently producing accurate and reliable results for certain blood tests, including the tests for calcium, chloride, potassium, bicarbonate, HIV and sodium.

The duo also allegedly made numerous misrepresentations to potential investors about Theranos’s financial condition and its future prospects.

They represented to investors that Theranos conducted its patients’ tests using Theranos-manufactured analysers; when, in truth, Holmes and Balwani knew that Theranos purchased and used for patient testing third party, commercially-available analysers.

The defendants also represented to investors that Theranos would generate over USD 100 million in revenues and break even in 2014 and that Theranos expected to generate approximately USD 1 billion in revenues in 2015 when, in truth, the defendants knew Theranos would generate only negligible or modest revenues in 2014 and 2015.

(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
Read full article
Next Story
Next Story

Also Watch


Live TV

Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results