In March 2018 the
US Securities and Exchange Commission charged Theranos, its CEO
Elizabeth Holmes and former president
Ramesh "Sunny" Balwani, claiming they had engaged in an "elaborate, years-long fraud" wherein they "deceived investors into believing that its key product – a portable blood analyzer – could conduct comprehensive blood tests from finger drops of blood".
[99][100] Holmes reached a settlement with the SEC which required her to pay $500,000, forfeit 19 million shares of company stock, and be barred from having a leadership position in any public company for ten years.
[101] Balwani did not settle with the SEC.
[102]
On June 15, 2018, Holmes and Balwani were
indicted on multiple counts of
wire fraud and conspiracy to commit wire fraud. According to the indictment, investors, doctors and patients were defrauded. It is alleged the defendants were aware of the unreliability and inaccuracy of their products, but concealed that information.