A big-name company is under fire after claims arose that they have been defrauding investors out of millions. Elizabeth Holmes, who serves as the CEO and founder of Theranos, is one of the people at that center of the charges. Standing by her side is the company’s former president, Ramesh Balwani. The two have been accused of securing investments under false pretenses for the purposes of growing their blood testing technology.
Here’s a look at the accusations and the strategies they plan on using to combat the charges.
The Justice Department’s allegations against Holmes And Balwani
In March, the Securities and Exchange Commission indicted Holmes and Balwani on federal fraud charges. The indictment was issued after allegations arose surrounding Theranos’ tactics to secure over $700 million in investments. The Justice Department alleges that the company lied to investors regarding the company’s performance related to their financial status, business ventures and the technology being used. However, before convictions can be obtained, the Department will first need to prove that the two are guilty of fraud beyond a reasonable doubt.
Holmes and Balwani defend against the charges
The defendants’ attorneys assert that their clients acted in good faith and that the Department cannot meet their burden of proof. They state that the defendants did not knowingly create false advertisements and did not intend to deceive investors.
Instead, they contend that others within the business have been feeding them false information from the beginning. In addition, they state that potential investors did not rely on these false assertions when making the decision to invest in Theranos. To demonstrate otherwise, federal prosecutors will need to back up their claims with material evidence. It remains to be seen if prosecutors will be able to secure a conviction.
An attorney can help you to win your case.
Federal charges are nothing to be taken lightly and can jeopardize your future. It may not be wise to allow a public defender to represent you when facing such serious charges. An experienced attorney can inform you of your rights and create a strategy to avoid a conviction.
Your innocence is worth fighting for. You do not have to go without help when navigating the judicial system. Consider consulting with an attorney to better the odds of securing a not-guilty verdict if you are facing federal fraud charges.