Skip to Main Content
Services Talent Knowledge
Site Search
Menu

News

March 19, 2018

Gabe Nugent Offers Insight on Theranos Fraud in Stat Article

Barclay Damon White Collar Practice Area co-chair Gabriel M. Nugent was recently quoted in online life sciences newspaper Stat's article "Investigators Say His Fingerprints Are All Over Financial Crimes at Theranos. Why Is He a Virtual Ghost?" Nugent gave his opinion about the possible legal defense that Ramesh "Sunny" Balwani, the former president and chief operating officer of health tech company Theranos, may take in light of massive fraud allegations against him.

According to the article, the Securities and Exchange Commission claims that Balwani and his then-girlfriend Elizabeth Holmes, the founder of Theranos, repeatedly lied about the capabilities of the company's blood-testing technology, "bilking investors out of more than $700 million."

While Theranos and Holmes have settled with the SEC, Balwani has not, with Nugent suggesting that he may attempt to push the crimes entirely on his ex-girlfriend.

"He's going to have to be able to point to someone, and it seems like it will be her," he said. "He could say that this is a person he invested his emotions in and trusted, and he put himself in a vulnerable place to be misled. On the other hand, it's harder for him to deny it with the 'I was not at the scene of the crime' defense."

Read Nugent's full comments in the article here.

Subscribe

Click here to sign up for alerts, blog posts, and firm news.

Subscribe

Sign up to receive our latest news

Practice Areas

Featured Industries

New & Emerging Industry Practice Areas

Other

Featured Media

Alerts

A Rule of Reason Dictated for OMIG "System Match" Desk Audits

Alerts

NYS's Landmark Climate Legislation Aims to Cut Greenhouse Gases, Increase Renewable Energy

Alerts

Start Delayed for Required Massachusetts Paid Family and Medical Leave Contributions

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out