Sunny Balwani Convicted of Fraud in Theranos Case
Sunny Balwani, former president and chief operating officer of Theranos, was convicted on 12 counts of wire fraud and conspiracy to commit wire fraud on Thursday, NBC News confirmed.
Balwani, who was Elizabeth Holmes's ex-boyfriend and former right-hand man, was one of the subjects of Hulu's recent "The Dropout" documentary series. Starring Amanda Seyfried, the series follows Holmes's journey to becoming the youngest self-made woman billionaire after she introduced revolutionary technology that could replace traditional blood tests through her company, Theranos. Only one problem: it all turned out to be one huge lie.
Details about Balwani's past are still pretty scarce, but we do know that he was previously married to Japanese artist Keiko Fujimoto. They divorced in 2002. As for his career, Balwani previously worked in software. He was a sales manager for Microsoft in Northern California before he eventually joined a start-up called CommerceBid in 1999.
Balwani served as president of the company, which created platforms that enabled businesses to pit suppliers against each other to lower costs. According to The New York Times, CommerceBid ended up getting sold for $225 million to another company called Commerce One less than a year after it was created. A few weeks after the two companies merged, Commerce One was worth $20 billion. However, its success was short-lived. After the recession in 2004, Commerce One was worth nothing. Still, Balwani ended up making an estimated $40 million.
After his endeavors with CommerceBid and Commerce One, Balwani moved on to Theranos, where he served as the chief operating officer and Holmes's close confidante. In 2018, Balwani and Holmes were both indicted for criminal fraud. Holmes was convicted on three charges of wire fraud and one count of conspiracy to commit wire fraud by lying to investors. Holmes has also accused Balwani of physical and psychological abuse, which he has denied.