A jury found Ramesh “Sunny” Balwani guilty of 12 counts of fraud brought by federal prosecutors, a Silicon Valley city court spokesman for San Jose told AFP. The verdict is scheduled for the end of the year, and the convict faces several years in prison.
Balwani was tried separately from former American biotech star Elizabeth Holmes, whose trial ended in the same premises in January. The verdict found her guilty of four counts of defrauding investors into investing in what she claimed was a revolutionary blood test system.
Despite this, the jury, which had been hearing difficult evidence for weeks, also acquitted her on four counts and failed to reach a verdict on three other counts. Holmes is expected to be sentenced in September.
During the trial, Holmes stated that Balwani had been physically and emotionally abused during their relationship, but he denied the claims.
Holmes and Balwani are a rare example of technology executives responding to allegations of company demise in an environment full of failed start-ups that once promised untold wealth. His trial showed how thin the line is between profit in the industry and criminal dishonesty.
U.S. Attorney Robert Leach told jurors in San Jose federal court that Balwani did business with Holmes and that the two were “partners in everything, including crime.”
Stephen Cazares, Balwani’s attorney, assured that his client did not commit fraud and is convinced of Theranos’ potential. Balwani, who is almost two decades older than Holmes, was hired to run the company she founded in 2003 when she was 19.
Holmes, now 38, promised he would have his own testing machines capable of performing inexpensive analytical range with just a drop of blood, a promise that was shattered when allegations of fraud surfaced.
Prosecutors allege that Holmes and Balwani knew the technology was not working as promised, but continued to promote it as revolutionary for patients and investors.
The likes of Rupert Murdoch and Henry Kissinger took an interest in Theranos when it was on the cutting edge. However, a Wall Street Journal report cast doubt on the company’s claims, which began Theranos’ demise.
