Theranos founder Elizabeth Holmes is stepping down as CEO as she faces charges of wire fraud

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June 15, 2018 10:22 PM

Elizabeth Holmes is no longer the CEO of Theranos. Holmes, who founded the company in 2003, will be replaced by David Taylor, the company's general counsel, the board said in a statement Friday.

Theranos founder Elizabeth Holmes is stepping down as CEO as she faces criminal charges.
The Department of Justice on Friday charged Holmes and former Theranos president Sunny Balwani with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.
Holmes
Theranos general counsel David Taylor has been named CEO.

Elizabeth Holmes is no longer the CEO of Theranos as she faces charges of wire fraud.

Holmes, who founded the blood-testing company in 2003, will be replaced by David Taylor, the company's general counsel, the board said in a statement Friday. She remains chair of the board.

Holmes, as well as former Theranos president Sunny Balwani are being charged with nine counts of wire fraud and two counts of conspiracy to commit wire fraud, stemming from allegations that the two engaged in a scheme to defraud investors and a separate scheme to defraud doctors and patients, the US Attorney's Office of the Northern District of California said Friday.

t one point, it was valued at $9 billion, but in recent months it has laid off most of its employees and is pleading with investors for more cash as it faces setbacks in the lab on its Zika test.

In March, the SEC charged Holmes, and Theranos with "massive fraud." As part of the settlement of those charges, Holmes paid a fine and cannot be a director or officer of a publicly traded company for 10 years.

The DOJ said Friday that Holmes and Balwani could face 20 years in prison and a $250,000 if convicted.

This story is developing.

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