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  • By The Financial District

Ex-Theranos COO Convicted Of Federal Fraud

Theranos founder Elizabeth Holmes' ex-boyfriend Ramesh "Sunny" Balwani, the former COO of bankrupt blood testing startup, was found guilty of cheating investors and clients, Sara Ashley O'Brien and Rishi Iyengar reported for CNN Business.

Photo Insert: A Theranos sample processing unit, which could allegedly screen for a variety of illnesses, including cancer and diabetes, using only a few drops of blood

Four full days of jury deliberations followed a protracted trial that began in March with opening arguments. A jury of five men and seven women found Balwani guilty of all 12 charges he was up against, including 10 counts of federal wire fraud and two counts of conspiracy to conduct wire fraud and concluded that he had misled investors and patients alike.

During Holmes' trial, a second jury acquitted her on charges of misleading patients but could not reach a unanimous result on three charges of defrauding investors. She was found guilty on four counts involving investors.

Theranos claimed to have created technology that could screen for a variety of illnesses, including cancer and diabetes, using only a few drops of blood.

Investors ultimately contributed $945 million to Theranos. Then it all fell apart, beginning with a Wall Street Journal investigation into the startup in 2015, which showed flaws in its testing processes and technological skills.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

Balwani, 57, faces up to 20 years in prison, a $250,000 fine, and restitution for each count of wire fraud and conspiracy. Holmes, 38, is scheduled for sentencing in late September. Balwani's sentencing is set for November.

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