"The Journal‘s reporting suggests that Theranos had been falsifying lab records to make it look like its own proprietary gear was as reliable as the industry standard.

Documents from health care inspectors also seem to show that this kind of stuff was happening.

If the DOJ concludes that Theranos was charging money for a test it knew was not accurate, that would violate health care laws, and could earn people prison time." http://www.wired.com/2016/04/theranos-investigated-fraud-wei...