Former Theranos CEO Holmes guilty of fraud and conspiracy

SAN JOSE, Calif. – Former Theranos CEO Elizabeth Holmes was convicted connected 4 counts of fraud and conspiracy Monday, ending a lengthy proceedings that has captivated Silicon Valley.

The assemblage recovered her not blameworthy of 4 different felony charges. On the 3 remaining charges, the assemblage was deadlocked.

Holmes could present look up to 20 years successful situation for each count.

The erstwhile entrepreneur, who had bowed her caput respective times earlier the assemblage was polled by the judge, remained seated and expressed nary disposable emotion arsenic the verdicts were read. Her partner, Billy Evans, showed agitation successful earlier moments but appeared calm during the verdict reading.

After the justice near the courtroom to conscionable with jurors individually, Holmes got up to hug Evans and her parents earlier leaving with her lawyers. Evans aboriginal emerged successful the hallway extracurricular the courtroom, looking visibly shaken and emotional.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier communicative follows below.

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SAN JOSE, Calif. (AP) — The assemblage weighing fraud charges against erstwhile Theranos CEO Elizabeth Holmes connected Monday confirmed that it is hopelessly deadlocked connected 3 of the 11 felony counts against the erstwhile entrepreneur. That signals that the extremity whitethorn beryllium adjacent for a ineligible play that’s captivated Silicon Valley.

U.S. District Judge Edward Davila called the assemblage backmost to the courtroom wherever the lengthy proceedings has taken spot successful bid to canvass jurors connected those felony charges. The jurors affirmed their inability to scope a verdict. Davila past sent them backmost to the assemblage country to capable retired their verdict form.

It's not wide whether the assemblage volition render its remaining verdicts connected Monday. The assemblage had signaled its deadlock connected immoderate charges earlier successful the day, but returned to deliberations erstwhile urged to bash truthful by the judge.

Holmes, a once-celebrated entrepreneur, is accused of duping investors and patients astir a flawed blood-testing exertion that she hailed arsenic a aesculapian breakthrough.

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Nine of the 11 counts are fraud charges and 2 revolve astir a conspiracy to perpetrate fraud from 2010 to 2015. During that time, Holmes became a Silicon Valley sensation, 1 worthy $4.5 cardinal connected insubstantial based connected her committedness that Theranos' exertion would revolutionize wellness care.

If convicted of immoderate of the charges, Holmes, 37, could look up to 20 years successful national prison.

“For each intents and purposes, the authorities lone needs a blameworthy verdict connected 1 count,” said Keri Curtis Axel, a erstwhile national authoritative present moving arsenic a proceedings lawyer astatine the Los Angeles instrumentality steadfast Waymaker. She said the hang-up connected 3 counts makes it much apt that jurors person reached blameworthy verdicts connected astatine slightest immoderate of the different counts.

David Ring, a lawyer who has been pursuing the Holmes lawsuit closely, besides interpreted Monday’s enactment arsenic an denotation that Holmes is apt to beryllium convicted connected immoderate counts. He expects a solution this week.

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“It could spell different time oregon truthful earlier the assemblage either comes backmost with a verdict connected each counts oregon sends different enactment telling the justice they’re inactive stuck,” Ring said.

Holmes was contiguous astatine Monday's proceeding to reappraisal some notes from the jury. Following jurors' day exit from the courtroom, she appeared to beryllium bowing her head.

After starting Theranos successful 2003 arsenic a 19-year-old assemblage dropout, Holmes began moving connected a exertion that she repeatedly promised would beryllium capable to scan for hundreds of wellness issues with conscionable a fewer drops of humor taken with a digit prick. Conventional methods requires a needle inserted into a person's vein to gully a vial of humor for each test, which indispensable past beryllium carried retired astatine ample laboratories.

Holmes believed she could supply much humane, convenient and cheaper humor tests with “mini-labs” successful Walgreens and Safeway stores crossed the U.S., utilizing a tiny investigating instrumentality dubbed “Edison” successful homage to the celebrated inventor.

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The conception proved to beryllium compelling. Theranos raised much than $900 cardinal from a agelong database of elite investors, including savvy billionaires specified arsenic media mogul Rupert Murdoch and bundle magnate Larry Ellison.

But astir radical didn’t cognize that the Theranos blood-testing exertion kept producing misleading results that led the institution to secretly trust connected accepted humor testing. Evidence presented astatine the proceedings besides showed Holmes lied astir purported deals that Theranos had reached with large cause companies specified arsenic Pfizer and the U.S. military.

In 2015, a bid of explosive articles successful The Wall Street Journal and a regulatory audit of Theranos’ laboratory uncovered perchance unsafe flaws successful the company’s technology, starring to the company's eventual collapse.

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Associated Press Business Writer Marcy Gordon contributed to this communicative from Washington.

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