Theranos and CEO Elizabeth Holmes charged by the SEC with defrauding investors

In the latest moment in a disastrous chain of events for the company, blood-testing startup Theranos and its CEO, Elizabeth Holmes, have been charged by the SEC with defrauding investors, the agency announced today.

To resolve the charges, the SEC said, Holmes has agreed to pay a $500,000 penalty, will give up majority voting control of the company, and will be barred from serving as an officer at a public company for a decade. The SEC has also charged the company’s former president, Ramesh “Sunny” Balwani, who has not resolved the charges.

According to the SEC, Theranos raised more than $700 million from investors through fraudulent claims, notably by saying its portable…

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