Mid-Year Review 2022

Boardroom Governance Newsletter #30 | July 11, 2022

“Six months after the guilty verdicts in the Elizabeth Holmes trial, this jury has concluded that Holmes’s business partner, Ramesh Balwani, also bears responsibility for defrauding investors in Theranos.” “The jury concluded that Balwani also perpetrated fraud on unsuspecting patients.” United States Attorney Stephanie M. Hinds. July 7, 2022.

Ramesh Balwani was found guilty of 12 counts of fraud last Thursday. A jury of five men and seven women took 32 hours to produce a verdict, convicting Mr. Balwani, known as Sunny, of all 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. Holmes' sentencing is scheduled for Sept. 26, and Balwani's is set for Nov. 15.

This puts an end to the Theranos saga (pending appeals), one of the most high profile Silicon Valley private company fraud cases, which also included an SEC settlement in 2018. I wrote about the Elizabeth Holmes verdict in January of this year, and many predict a harsher sentence for Ramesh Balwani, who was conv…