Theranos founder Elizabeth Holmes is facing jail after being convicted of defrauding investors in a trial relating to the US company’s flawed blood test technology.
The 37-year old, who founded Theranos when she was just 19, was found guilty on two counts of wire fraud and two counts of conspiracy to commit fraud after seven days of jury deliberation following a three-month trial.
Prosecutors said Holmes knowingly lied about technology she said could detect diseases from a tiny amount of blood taken with a finger prick test.
Holmes denied the charges, which carry a maximum prison term of 20 years each.
She had faced 11 charges in total and was found not guilty of four charges relating to defrauding the public.
Theranos, at one point valued at US$9bn, had promised to revolutionise the healthcare industry with a test that could detect diseases such as cancer and diabetes with only a few drops of blood.
The company raised more than US$900mln from billionaires such as media mogul Rupert Murdoch and software magnate Larry Ellison.
But in 2015, the Wall Street Journal published an article that claimed Theranos’ blood-testing technology was so flawed the company was using equipment made by other businesses to carry out tests in its laboratories.
Theranos collapsed in 2016 and in 2018, Holmes was charged with fraud.
At trial, lab directors testified to telling Holmes about the flaws in Theranos' technology but being instructed to downplay their concerns. At the same time, they said Holmes told investors the technology was operating as planned.
Holmes "chose fraud over business failure. She chose to be dishonest with investors and patients", said prosecutor Jeff Schenk in closing arguments.
"That choice was not only callous, it was criminal."
Testifying in her own defence, Holmes acknowledged mistakes in Theranos' operation, but denied knowingly defrauding patients or investors.
The defence also laid blame on Ramesh "Sunny" Balwani, Holmes’ former business partner and ex-boyfriend.
At trial, Holmes accused Balwani, 19 years her senior, of emotional and sexual abuse - allegations he denies.
Holmes will remain free on bond while awaiting sentencing, which will be determined by the judge.