Theranos CEO faces criminal charges

Elizabeth Holmes, once the center of an amazing business success story, is now facing allegations of fraud.
2:20 | 06/16/18

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Transcript for Theranos CEO faces criminal charges
We're talking this morning about Elizabeth home she was once said the center of an amazing business success story. Now facing criminal charges as she stepped down from her role as CEO of a company called fairness. San ADB chief business technology and economics correspondent Rebecca Jarvis has the very latest. A high tech company that prosecutors say was up fried. She was once celebrated as the youngest self made female billionaire a rising star in Silicon Valley. Look this morning the founder and former CEO of spirit ups Elizabeth Holmes and her ex president promised fell money indicted on criminal charges for allegedly defrauding investors. Out of hundreds of millions of dollars settled those wealthy investors including education secretary Betsy your boss media mogul Rupert Murdoch. At wal mart's Walton family. Homes stepping down his company CEO Friday after years of promising the company's technology. Could detect hundreds of diseases with just a few pricks of blood. When she saw up. The constant protests. Would be a little lower than the cost of the meal the gratitude. On her faith. Struck my heart. Federal prosecutors say homes involved wanna engaged in a scheme to defraud doctors and patients alleging the two of them knowingly lied about the accuracy and reliability of some of their products back in March the SEC announced massive fraud charges of 700 million dollars against Aaron that was. Clayton homes involved Lonnie missed led partners and investors and it falsely claimed the company didn't need regulatory approval for its technology. We sat down with the former employee who went on to testify in a separate lawsuit against there and oust. About the unprecedented. Levels of secrecy inside the company. I have not experienced anything anything like working parents on Friday both homes involved Lonnie pleaded not guilty to the charges of wire prop Hawaii's attorney releasing a statement I have never seen a case like this what. Where the government brings a criminal prosecution. Against the defendant who obtained no financial benefit and lost millions of dollars of his own money. Rebecca Jarvis ABC news New York. Quite a dramatic fall from grace for heard her company and we should mention ABC news reached out to Elizabeth Holmes for a comment. But we have not heard back.

This transcript has been automatically generated and may not be 100% accurate.

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