On Wednesday, March 14, 2018, the Securities and Exchange Commission... (Associated Press) 
 
 NEW YORK (AP) — Elizabeth Holmes, a Stanford University dropout once billed as the "next Steve Jobs," has forfeited control of Theranos, the blood-testing startup she founded, and will pay $500,000 to settle charges that she oversaw a "massive fraud." Company founder Elizabeth Holmes, widely hailed as Silicon Valley’s first female billionaire startup founder, agreed to a settlement with federal regulators that strips her of voting control of Theranos, bans her from being an officer or director of any public company for 10 years and requires her to pay a $500,000 penalty. The SEC said Wednesday that it will pursue its case against the president of the company, Ramesh "Sunny" Balwani, in federal court. At the center of Theranos' mystique was its "Edison" machine, which the company claimed could test for a variety of diseases through only a few drops of blood from a person's finger. And this machine — which in later versions was called the miniLab — was supposedly faster, cheaper, and more accurate than all the other blood-testing lab equipment out there. But even though Theranos said it could run 200 tests, Holmes and the rest of the company knew that their machine could only do a dozen or so, the SEC alleged. The Journal quoted former employees that suspected the technology was a fraud, and it found that the company was using routine blood-testing equipment for the vast majority of its tests.  FILE- In this Nov. 2, 2015, file photo, Elizabeth Holmes, founder and CEO of Theranos, speaks at the Fortune Global Forum in San Francisco. In 2016 the Centers for Medicare and Medicaid Services, which oversees blood testing labs in the U.S., banned Holmes from operating a lab and revoked Theranos' blood testing license. In late 2016, Theranos began shutting down its clinical labs and wellness centers and laid off more than 40 percent of its full-time employees.
– She was the first female founder of a Silicon Valley startup to become a billionaire before it all came crashing down. Now Elizabeth Holmes' personal fortune is gone, and she has just settled with federal regulators who say her company, Theranos, lied to investors about its supposedly revolutionary blood-testing equipment. Holmes, 34, forfeits control of the company, is barred from serving as an officer or director of any public company for a decade, and must pay $500,000, reports the AP. And her troubles may be just beginning. The Wall Street Journal reports that she still faces a criminal investigation being led by the US attorney's office in San Francisco. Details and developments: The biggest lies: BuzzFeed runs down the seven biggest Theranos lies, and they revolve around one central one: claims that its "special machine could run hundreds of blood tests on just a few drops of blood." A stunt involving Walgreens, a former partner, is illustrative. Theranos collected blood samples from Walgreens execs but processed those samples in outside lab equipment. The wowed Walgreens execs, however, were led to believe the blood was processed on the Theranos equipment in the meeting room, per BuzzFeed.