Theranos founder, former president indicted on wire fraud charges

SAN JOSE, Calif. -- The founder and former president of the Bay Area health technology company Theranos have been indicted on two counts of conspiracy to commit wire fraud and nine counts of wire fraud, the Department of Justice says.

Elizabeth Holmes and Ramesh "Sunny" Balwani made their first court appearance in U.S. District Court, where both pleaded not guilty to the charges.

They're alleged to have perpetrated multi-million dollar schemes to defraud investors, doctors and patients.

Theranos, which is headquartered in Palo Alto, Calif., announced Friday that Holmes has stepped down as CEO and David Taylor, the company's general counsel, will take her place.