holmes and balwani are now out on $500,000 each. as part of the release conditions they were forced to turn in passports. live in san jose, chris wynn, abc 7 news. >> chris, thanks. now holmes founded theranos in twoe over the next ten years it grew becoming one of the hottest tech companies in the country in 2014. >> that year elizabeth holmes was one of the featured features at a ted talk in san francisco. >> technology can and is transforming our world. and many policy issues along with it. >> holmes was featured in several national publications that year with one of them even calling her the next steph jobs. things quickly unraveled in the fall of 2015 after a "wall street journal" investigation questioned the legislate macy of the blood testing technology. >>> months later holmes was banned from running the lab and theranos had the license reflect. the securities and exchange commission sued holmes and the company process petition she settled in march of this year. stay with abc 7 news at abc7news.com for the latest development

both holmes and balwani have pled not guilty to the charges. theranos founder elizabeth holmes was once considered a rising star. but friday afternoon her fall interest from grace continued as she appeared in district court to face charges of wire fraud alongside former company president. holmes founded theranos in 2003 pitching the company's technology as a cheaper more efficient way of doing blood tests. this meeting shows her meeting with joe biden we he visited the companies newark lab in 2015. however federal prosecutors say holmes and balwani engaged in a multimillion dollar scheme to defraud investors and a separate scheme to defraud doctors and patients. alleging the two of themlied about the accuracy and rile ability of products. in a statement u.s. attorney for the northern district of california said investors large and small from around the world are attracted to silicon valley by its track record, talent and promise. they are also attracted by the fact that behind the innovation and entrepreneurship are rules of law that require ho

ex-president sunny balwani, indicted on defrauding hundreds of millions of dollars. settled by those wealthy investors including betsy devos, media mogul rupert murdoch, and walmart's walton family. she is stepping down after years of promising the technology could detect hundreds of diseases with just a few pricks of blood. >> when she saw the costs of her tests would be a little more than the cost of a meal, the gratitude on her face struck my heart. >> reporter: federal prosecutors say holmes and balwani engaged in a scheme to defraud doctors and patients, lying about the accuracy and the liability about some of their products. back in march, there was a massive fraud suit of $700 million against theranos, claiming balwani and holmes misled investors, and falsely claimed the company didn't need regulatory approval for its technology. we sat down with a former employee who testified about the secrecy inside the company. >> i have not experienced anything like working there. >> reporter: on friday, both holmes and balwani pleaded not guilty to the charges of wire fr

. >> reporter: homes -- holmes and ramesh balwani were charged with defrauding investors hundreds oflions of dollars as well as misleading doctors and patients. holmes's -- holmes promised to shake up the medical imaging with a device that could screen for dozens of diseases with a drop of blood. we posed the question tonight, to russell hancock of joint venture silicon valley, whether this was a piece of a larger puzzle, a potential silicon valley startup snake oil. >> the hope is that this is an exceptional case and there is not a contingent across silicon valley. my sense is that this is limited. venture capitals are very smart people. i cannot explain how this particular board of directors and the investors were so completely taken in and why they weren't executing their own due diligence. i can't explain that. there is something about the draw and charisma of elizabeth holmes. >> reporter: holmes went from being ceo of the company valued at $9 billion to posting a $500,000 bond and surrendering her passport today. >> i cannot imagine that either one of them have any kind of a fu

out side of the courtroom, jeff cooper smith speaking on behalf balwani. prosecutors say they were behind a multimillion dollar scheme to defraud investors and another to dupe doctors and patients. they say they knowingly lied about the accuracy of their products. technology that was said to be a cheaper and more efficient be way of doing blood tests. >> put his heart and soul into this, he had his own family tested. >> reporter: and a lab joe biden visited back in 2015. this video shows biden and holmes touring the facility. only sign theranos even exists in the building was this one posted on its front door giving contact information for theranos. amanda del castillo, abc 7 news. >>> holmes dropped out of stanford and started theranos in 2003. in 2014 holmes, she was featured in several national publications. its value soared to $9 billion that year. holmes was one of the main speakers at a ted talk in san francisco back in 2014. >> the right to protect the health and well-being of every person of those we love is a basic human right. >> but things start

outside of the courtroom, jeff cooper smith speaking on behalf balwani. prosecutors say they were behind a multimillion dollar scheme to defraud investors and another to dupe doctors and patients. they say they knowingly lied products. accuracy of their technology tt was said to be chear and more efficient way of doing blood tests. >> put his heart and soul into this, he had his own family tested. >> reporter: and a lab joe biden visited back in 2015. this video shows biden and holmes touring the facility. only sign theranos even exists in the building was this one posted on its front door giving contact information for theranos. abc 7 news. >>> holmes dropped out of stanford and started theranos in 2003. in holmes, she was featured in several national publications. its value soared to $9 billion that year. holmes was one of the main speakers at a ted talk in san francisco back in 2014. >> the right to protect the health and well-being of every person of those we love is a basic human right. >> but things started to unravel in october of 2015 when a "wall

she and balwani could spend up to 20 years in prison if convicted. >>> bragging about being sexually deviant. tonight two best friends in the south bay are accused of having santa clara county sheriff detectives say talia sisco and tina pourani, both 24 years old, became a target of their investigation back in april. they were tipped off about the alleged relationships between the women and several 15 and 16-year-old boys. investigators say the two women bragged and joked about their alleged sex acts. >> it's absolutely outrageous that they think this is funny. this is a crime, and they're predators. >> sisco is a student teacher at bernal middle school in san jose. detectives say theye not found any connection to any students there. both women now face multiple felonies. >>> in a small north bay city, more victims of a vandalism spree are coming forward tonight. their car windows were blown out with a bb gun. cheryl hurd is live with the very latest for us in american canyon. >> reporter: well, the police chief putting in some late hours tonight. he tells me that they were going ove

out side of the courtroom, jeff cooper smith speaking on behalf balwani. prosecutors say they were behind a multimillion dollar scheme to defraud investors and another to dupe doctors and patients. they say they knowingly lied about the accuracy of their products. technology that was said to be a cheaper and more efficient be way of doing blood tests. >> put his heart and soul into this, he had his own family tested. >> reporter: and lab joe biden visited back i this video shows biden and holmes touring the facility. only sign theranos even exists in the building was this one posted on its front door giving contact information for theranos. abc 7 news. >>> holmes dropped out of stanford and started their knows o theranos in 2003. in holmes, she was featured in several nags publtional publicl. its value soared to $9 billion that year. holmes was one of the main speakers at a ted talk in san francisco back in 2014. >> the right to protect the health and well-being of every person of those we love is a basic human right. >> but things started to unravel in oc

both holmes and balwani have pled not guilty to the charges.ranos founder elizabeth holmes was once considered a rising star.

misinformation claiming with just a few drops of blood their technology could detect diseases but milw balwani is claiming he victim, too. >> he believed in the company's technology and over the 100 ph.ds and mds that worked there and were a top-notch team. he did everything he could, put his heart and soul in this. yesterday holmes resigned as ceo. they could spend up to 20 years in prison if convicted. >> a warning for people in the south bay, mosquitoes in parts of santa clara and sunny veil ha have tested positive for west nile virus. a truck will be spraying treatment late tuesday. the area is centered around reed avenue. the fogging is set for 11 p.m. tuesday night. >> police in the north bay need your help. they want to catch whoever is destroying car windows with what appears to be a bebe gun. officers responded to the first call yesterday around 4 a.m. calls started pouring in after that. they now believe there are more than 30 victims. one of those victims told us it was very disturbing to see her window shattered this way. >> i'm so disappointed. i don't feel safe anymore in this ar

. -- balwani is continuing to fight the charges.the criminal charges, it is most likely they will enter into a plea agreement, but we will not know that probably until the fall. emily: how quickly could we expect things to proceed? >> it will take time. i think in the fall things -- we will really start to hear more about what is happening. we know that she stepped down as the ceo of the company, now the company is really being run by their legal counsel. emily: what is theranos at this point? i saw the headlines about elizabeth holmes stepping down, so what is the company today? what was she the ceo of? >> you know, i think they have a lot of legal work to do, so the company exists to help with her that. i am sure that they have all sorts of pending lawsuits from people who received these blood tests, and who want to pursue legal action further against the company. emily: ok. olivia zaleski, i know you will keep us posted. still ahead, the president's space aspirations take off, calling for robotic explorers on the moon as soon as