Theranos Founder Elizabeth Holmes' Fraud Convictions Upheld

'Elizabeth Holmes' fraud conviction has been upheld by a federal appellate panel,' writes Slashdot reader ClickOnThis. MSNBC reports: A three-judge panel of the 9th U.S. Circuit Court of Appeals on Monday affirmed the convictions, sentences and nine-figure restitution ordered against both Holmes and Theranos president, Ramesh 'Sunny' Balwani. Theranos was supposedly going to revolutionize medical laboratory testing with the ability to run fast, accurate and affordable tests with just a drop of blood from a finger prick. 'But the vision sold by Holmes and Balwani was nothing more than a mirage,' 9th Circuit Judge Jacqueline H. Nguyen wrote (PDF) for the panel, adding that the 'grandiose achievements touted by Holmes and Balwani were half-truths and outright lies.'

Holmes was convicted of crimes related to fraud against investors while the jury acquitted her or hung on other counts. Balwani was convicted on all counts at his trial. The federal panel rejected a slew of arguments from both defendants, including that their trials featured improper testimony from Theranos employees. While the ruling is a major setback for the defendants, they can further appeal to a fuller panel of 9th Circuit judges and the Supreme Court, which generally has broad discretion over whether to accept cases for review.

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