Former Silicon Valley CEO Sentenced to Eight Years in Prison for COVID-19 Testing Fraud

Former Silicon Valley CEO Sentenced to Eight Years in Prison for COVID-19 Testing Fraud

Former CEO of the Arrayit Corporation, Mark Schena, has been sentenced to eight years in prison for defrauding investors and making false claims about his company’s ability to test for COVID-19. Schena, 60, misled investors by falsely claiming to have developed a “revolutionary technology” that could diagnose various diseases with a single drop of blood. He also made fraudulent statements about his company’s value and his own achievements, including being on the shortlist for a Nobel Prize.

Prosecutors revealed that Schena attempted to develop a COVID-19 test during the pandemic but was unsuccessful. Despite this, he continued to market his test as effective to avoid bankruptcy. Schena falsely announced in early 2020 that his company had created a COVID-19 test, concealing the fact that it did not meet the accuracy requirements set by the Food and Drug Administration (FDA).

Furthermore, Schena misled investors and the public throughout the pandemic, failing to disclose that Arrayit was on the brink of bankruptcy. He engaged in deceptive marketing campaigns, falsely claiming partnerships with other companies, government entities, and healthcare providers. Prosecutors also uncovered a healthcare scheme where Schena ordered unnecessary allergy tests for patients and submitted fraudulent claims to Medicare and private health insurance companies.

As part of his sentencing, Schena has been ordered to pay $24 million in restitution. The case against him echoes the fraudulent claims made by former Theranos CEO Elizabeth Holmes, who was also sentenced to prison. Acting Assistant Attorney General Nicole M. Argentieri described Schena’s actions as exploiting the pandemic for profit and endangering patients with unproven COVID-19 tests.

Director Kelly P. Mayo of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, stated that Schena’s sentencing holds him accountable for a multimillion-dollar fraudulent scheme driven by greed and devoid of fiscal responsibility or concern for patient safety.


Author: CrimeDoor

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