Search

California tech CEO charged in coronavirus test fraud case - Fox Business

bulukuci.blogspot.com

The president of a Silicon Valley medical technology company was charged Tuesday with misleading investors by falsely claiming the company had developed a government-approved blood test for the new coronavirus — the first criminal securities fraud prosecution related to the COVID-19 pandemic, federal officials said.

Continue Reading Below

Mark Schena, the president of Arrayit Corporation, was charged with one count of securities fraud and one count of conspiracy to commit health care fraud after authorities said his company billed Medicare $69 million for coronavirus and unnecessary allergy tests.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Schena did not immediately return a message seeking comment.

Schena, 57, touted that the company based in Sunnyvale had the only laboratory in the world that offered “revolutionary microarray technology” that allowed it to test for allergies and the coronavirus with the same finger-stick test kit, prosecutors said.

Beginning in 2018 and through February 2020, Schena and other employees paid bribes to recruiters and doctors to run an allergy screening test for 120 allergens ranging from stinging insects to food allergens on every patient, authorities said.

As the coronavirus pandemic began to escalate, Schena, of Los Altos, instructed patient recruiters and clinics to add its test for the coronavirus, prosecutors said.

THESE BUSINESS TAX CREDITS ARE AVAILABLE FOR CORONAVIRUS-RELATED FINANCIAL RELIEF

He also is accused of publishing false claims on social media and in company emails to investors about Arrayit’s ability to provide accurate, fast, reliable and cheap coronavirus tests in compliance with state and federal regulations.

Schena told investigators he thought developing a test for the coronavirus based on his allergy test would be simple, “like a pastry chef” who switches from selling “strawberry pies” to selling “rhubarb and strawberry pies.”

SECOND CORONAVIRUS OUTBREAK POSES BIGGEST RISK TO US ECONOMY, EXPERTS SAY

Arrayit never disclosed that the Food and Drug Administration informed it on April 17 that its COVID-19 test was not at an acceptable level of performance, federal prosecutors said.

The company also claimed partnerships with Fortune 500 companies, government agencies and public institutions, without disclosing they were either trivial or did not exist, federal prosecutors said.

CLICK HERE TO READ MORE ON FOX BUSINESS

Arrayit’s stock price more than doubled by mid-March, even as the stock market was crashing, according to court documents.

“The allure of cheap reliable alternatives to today’s standard blood tests panels has captured the imagination of the health care industry, making such alternatives a prime subject for fraudsters,” said U.S. Attorney David L. Anderson of the Northern District of California.

Let's block ads! (Why?)



"case" - Google News
June 10, 2020 at 10:48AM
https://ift.tt/30ozaZj

California tech CEO charged in coronavirus test fraud case - Fox Business
"case" - Google News
https://ift.tt/37dicO5
https://ift.tt/2VTi5Ee

Bagikan Berita Ini

0 Response to "California tech CEO charged in coronavirus test fraud case - Fox Business"

Post a Comment

Powered by Blogger.