NEW YORK (AP) — Elizabeth Holmes, a Stanford dropout once called the “next Steve Jobs” is being charged with “massive fraud” by U. S. regulators on her actions while leading the bloodstream testing startup Theranos.
Theranos plus Holmes agreed Wednesday to settle the situation and pay a $500, 500 fine. She is barred from providing as an officer or director of the public company for 10 years. The particular Securities and Exchange Commission stated it will take its case against the chief executive of the company, Ramesh “Sunny” Balwani, to federal court.
The SECURITIES AND EXCHANGE COMMISSION’S says Holmes, 34, Theranos, plus Balwani misled investors for years regarding the performance of its blood testing technologies. Theranos, based in Palo Alto, Ca, misled investors for years, once informing them its machines were used by the Defense Department when they are not.