Separate from the SEC action, Theranos continues to face a criminal investigation led by the U.S. attorney’s office in San Francisco.
The SEC also alleges that Theranos, Holmes and Balwani falsely claimed that their products were being used by the Department of Defense on the battlefield in Afghanistan and on medevac helicopters. That technology was never used by the Department of Defense, even though Gen. Jim Mattis, who then led the U.S. Central Command, personally pushed for it to be used in the field. Regulatory officials in the military flagged problems with Theranos's blood-testing process. Mattis later joined Theranos's board. He resigned from that position when he became U.S. defense secretary.
Wednesday, March 14, 2018
"Theranos Inc. founder and chief executive Elizabeth Holmes surrendered voting control of her blood-testing company, paid a $500,000 penalty and agreed to a 10-year ban from being an officer or director in a public company in settling civil-fraud charges Wednesday with the" SEC