A federal jury in San Jose, Calif. has convicted 10 felony medical technology executives in the first criminal securities fraud case related to the COVID-19 pandemic.
Mark SienaThe 59-year-old, president of Arrayit Corp., a publicly traded Silicon Valley company, claimed to have invented a technology that could use a few drops of blood to test for diseases, including COVID-19. He calls himself the “father of microarray technology,” a revolutionary mass DNA detection tool and key to his newfound testing method, according to court documents. , defrauded investors while executing a rebate plan with false redemptions of $77 million. Claims to private insurance companies and federal programs, including Medicare.
Through a press release and a Twitter post, Schena “assured” worried investors that “despite the fact that no such deal actually exists or is of minimal value,” Arrayit’s Posted false information about lucrative partnerships with respectable rights that agreed to use technology. US Attorney’s Office for the Northern District of California.
Scena also lied that he was on the Nobel Prize shortlist and that Arrayit was worth $4.5 billion with annual sales of $80 million, prosecutors said. says. In the process, he failed to release the company’s financial disclosures required by the Securities and Exchange Commission, hiding the fact that it was “on the brink of bankruptcy.”
In the process, he failed to release the company’s financial disclosures required by the Securities and Exchange Commission, hiding the fact that it was “on the brink of bankruptcy.” As an obvious source of income, Shayna filed fraudulent claims with Medicare and private insurance companies for unnecessary allergy tests, paid kickbacks to marketers, and accused the Aleit test of being highly accurate in diagnosing allergies. Helped falsely advertise.
According to a press release on Friday, “Aleit bills Medicare on a per-patient basis for blood-based allergy tests more than any other lab in the United States, evidence in court shows, and some private insurers. charged more than $10,000 per test.
The scam started in 2015, but didn’t seem to come to federal attention until early 2020. At this time, Shena announced that Arrayit tested her for COVID-19 early in the pandemic. With demand for allergy tests dwindling, Shaena attempted to capitalize on the pandemic by falsely claiming Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, and other prominent officials “mandated testing for COVID-19 and allergies at the same time, requiring that patients undergoing Arrayit COVID-19 testing also be tested for allergies.” said. press release.
In fact, according to the indictment, the U.S. Food and Drug Administration deemed the company’s tests unlicensable.
Schena was indicted on a complaint in June 2020 and was indicted five months later. A qualified doctor who participated in the kickback scheme cooperated with prosecutors after agreeing to plead guilty to conspiracy to commit health care fraud. Prosecutors added more charges in a superseding indictment in May 2021.
On Thursday afternoon, the second day of deliberation, the jury found one count of conspiracy to commit health care fraud, one count of conspiracy to commit wire fraud, two counts of health care fraud, one count of conspiracy to make kickback payments, and one count of conspiracy to commit kickback payments. He was convicted of two counts of paying expenses. He counted three for kickbacks, and securities fraud.
He is scheduled for sentencing on January 30 and remains free on bail.
Siena’s case Elizabeth HolmesTheranos, the founder of blood testing startup Theranos, was convicted in January of three counts of wire fraud and one count of conspiracy to defraud key investors through false claims about the company’s success.
Arrayit was a publicly traded company during Shayna’s crimes, but Theranos never went public. However, Holmes received far more media attention than Shayna while promoting Theranos.Both cases were heard before a U.S. District Judge Edward Davila In San Jose, Holmes lasted about four months and Sheena three weeks.
Siena is todd pickles When Alexandra Bullock of Greenberg Traurig LLP, which was not reached for comment on Friday.
Please read the original billing complaint against the schema below.
(Image: Screenshot from KTVU TV)
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