Indian-origin Ramesh 'Sunny' Balwani faces trial in mega health fraud
IANS 04 January 2022
With youngest billionaire Elizabeth Holmes being found guilty of defrauding investors as founder and CEO of healthcare company Theranos in the US, her partner and the company's COO, Ramesh 'Sunny' Balwani, now faces his own fraud trial for the same charges, which is set to begin in February.
 
Indian-origin Balwani was Holmes' "boyfriend in secret".
 
"They met when Holmes was 18 and Balwani was 37 -- she moved in with him the year after she dropped out of Stanford. She also said during the trial that she was raped as a Stanford student, which is part of why she didn't finish her degree," TechCrunch reported.
 
During the four months of court proceedings, Holmes has detailed Balwani's controlling behaviour, including a written document that dictated her daily schedule, including what she ate, when she slept and how she dressed.
 
She said, "He was so disappointed in my mediocrity and he was trying to teach me how to be better."
 
Holmes founded Theranos in 2003 and the company was once valued at more than $9 billion. In 2015, an expose in The Wall Street Journal revealed major problems with Theranos' technology. In 2018, Holmes and Balwani were charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud.
 
According to the indictment, the charges stem from allegations that Holmes and Balwani engaged in a multi-million-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients.
 
Both schemes involved efforts to promote Theranos, a company founded by Holmes and based in Palo Alto, California. Theranos was a private health care and life sciences company with the stated mission to revolutionise medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data.
 
According to a Department of Justice press release, Holmes and Balwani used advertisements and solicitations to encourage and induce doctors and patients to use Theranos's blood testing laboratory services, even though, according to the government, the defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests.
 
"It is further alleged that the tests performed on Theranos technology were likely to contain inaccurate and unreliable results," the statement read.
 
Holmes and Balwani defrauded doctors and patients by making false claims concerning Theranos's ability to provide accurate, fast, reliable, and cheap blood tests and test results, and by omitting information concerning the limits of and problems with Theranos' technologies.
 
The defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests, including the tests for calcium, chloride, potassium, bicarbonate, HIV, Hba1C, hCG, and sodium.
 
However, they explicitly represented to individuals via advertisements that Theranos's blood tests were cheaper than blood tests at conventional laboratories to induce individuals to purchase their blood tests.
 
The indictment alleges that the defendants used a combination of direct communications, marketing materials, statements to the media, financial statements, models, and other information to defraud potential investors.
 
In a big twist for the high-profile trial, Holmes took the stand herself to argue that her failure as a startup founder doesn't mean she committed fraud.
 
"In a key moment, Holmes alleged that Theranos COO Ramesh 'Sunny' Balwani abused her," the TechCrunch report said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Mandar
2 weeks ago
Pakistani. Not Indian.
Ramesh Balwani was born in Pakistan to a Sindhi family. 
The family eventually moved to India \"because being a Hindu in a mostly all-Muslim country of Pakistan was very difficult\" according to Balwani\'s personal lawyer. Later they immigrated to the United States.
In 1986, Balwani began undergraduate studies at the University of Texas at Austin where he was a member of the Pakistani Students Association.
Theranos Founder Elizabeth Holmes Convicted of Fraud: Reports
Moneylife Digital Team 04 January 2022
Elizabeth Holmes, founder and chief executive of Theranos, has been found guilty on four of 11 charges of fraud, concluding a high-profile trial that captivated Silicon Valley and chronicled the missteps of the now-defunct...
World's 10 richest men add $402 billion to their net worth in 2021
IANS 31 December 2021
Led by Tesla CEO Elon Musk, the world's 10 richest people added nearly $402.17 billion (India has a forex reserve of about $635 billion) in 2021.
 
According to the Bloomberg Billionaires Index, Musk added $121 billion to...
The Dirty Secret of America’s Clean Dishes
Max Blau  and  Lylla Younes (ProPublica) 21 December 2021
This story was originally published by ProPublica.
 
The world’s largest chemical maker, BASF, produces ingredients for America’s most popular products, from soaps to surface cleaners to dishwasher detergent. Emissions from...
How Three Families in the US Shielded Their Fortunes from Taxes for Generations
Patricia Callahan, James Bandler, Justin Elliott, Doris Burke  and  Jeff Ernsthausen (ProPublica) 16 December 2021
This story was originally published by ProPublica.
 
In the early 1900s some of the wealthiest Americans claimed their fortunes would never last through the generations. A century of tax avoidance later, the dynasties are...
Free Helpline
Legal Credit
Feedback