Theranos and CEO Elizabeth Holmes Charged With Massive Fraud

It hasn’t been a good week for Theranos CEO Elizabeth Holmes as well as Ramesh “Sunny” Balwani, who was the company’s former president.

Theranos and the two are being charged by the SEC with fraud relating to the startup company’s fundraising activities.

The SEC says that Holmes, Balwani, and the company, have raised more than $700 million from investors through “an elaborate, years-long fraud.” The company has made “false statements about the company’s technology, business and financial performance.”

According to the SEC, the company and these executives have misled their investors about the capability of its blood testing technology.

Theranos and Holmes have both already agreed to resolve the charges. For Holmes it means paying a penalty and giving up effective control of the company that she founded.