My layman's interpretation is that she willingly defrauded investors but did in fact deliver test results to the patients, albeit at a lower quality level than you would expect in the industry.

I think in the HBO documentary they say the unravelling started because of FDA complaints on the bloodwork being sub par. But I think you can't jail someone for 120 years because they did a shoddy product. Maybe the prosecutors simply went for the biggest bang for their buck?