SAN JOSE, Calif. — Ramesh Balwani, a former top executive at Theranos, was found guilty on Thursday of 12 counts of fraud, in a verdict that was more severe than that of his co-conspirator, Elizabeth Holmes, and solidifying the failed blood-testing start-up as the ultimate Silicon Valley cautionary tale.
Mr. Balwani and Ms. Holmes, who together pushed Theranos to soaring heights with a promise to revolutionize health care, are the most prominent tech executives to be charged with and convicted of fraud in a generation. A jury of five men and seven women took 32 hours to produce a verdict, convicting Mr. Balwani, known as Sunny, of all 10 counts of wire fraud and two counts of conspiracy to commit wire fraud.
Ms. Holmes was convicted in January on four counts of fraud and acquitted of four; three other charges were dismissed after the jury could not reach a consensus. She has appealed the verdict, and Mr. Balwani is expected to do the same.
Both of their cases hinged on whether they had exaggerated the abilities of Theranos’s blood-testing machines to appeal to investors and customers, when the products did not actually work.
Each count carries a maximum sentence of 20 years in prison. Mr. Balwani and Ms. Holmes are expected to be sentenced together in September.
This is a developing story. Check back for updates.
Kalley Huang contributed reporting.