Obama’s Tech Ambassador Charged With Wire Fraud

Former Obama ‘tech ambassador’ Elizabeth Holmes has been under a microscope for months for various charges. Now she has been indicted and is stepping down as CEO of Theranos.

NBC News reports:

Theranos CEO Elizabeth Holmes, indicted on wire fraud charges, to step down

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Blood-testing company Theranos said on Friday that its founder, Elizabeth Holmes, would step down as chief executive officer amid federal fraud charges.

Theranos founder Elizabeth Holmes and the embattled company’s former president were indicted on charges that they engaged in schemes to defraud investors, doctors and patients, the Justice Department announced on Friday.

The charges against Holmes, 34, and Ramesh “Sunny” Balwani, 53, were announced shortly after the privately held company said she was stepping down as its chief executive officer.

Prosecutors said Holmes and Balwani used advertising and solicitations to encourage doctors and patients to use its laboratory services despite knowing that the company could not produce accurate and reliable results consistently.

The indictment also alleges that Holmes and Balwani made numerous misrepresentations about Theranos’ financial condition and future prospects.

Each defendant faces two counts of conspiracy to commit wire fraud and nine counts of wire fraud. Prosecutors said both made initial court appearances on Friday before a federal magistrate judge in San Jose, California.

Read the full indictment here.

It’s fascinating how many media reports are leaving Obama’s name out of the story. That’s no accident.

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