I know they were a bit fraudulent but.....
.....if every overhyped claim by a company resulted in criminal charges most of our stock of executives would be in jail by now.
Piling on the charges like this is typical of the US justice system, especially the Federal system. Its designed to intimidate so that the defendant folds without the US attorney having to go through that tedious business of actually proving a case in court. Its a practice I disagree with because it makes a mockery of the justice system -- yes, those two did pile it on, yes, they took a bunch of investors' money and blew through it without producing a product. There should be a reckoning but, seriously, I've worked for at least two companies that have blown through investor dollars without producing anything tangible. (In my defense I was just one of the poor sods around the back trying to get the thing to work -- there's analagous people in the Theranos story. The money went down a different rat hole, typically 'marketing' and other front office expenses, essentials like nice vehicles and the like.)
BTW -- 'Stock of executives'? In my experience the same names and faces keep cropping up in the executive suite. Its a bit like a self-help society for the well off.