Skip to content

Compliance Building

Doug Cornelius on compliance for private equity real estate

Menu
  • Home
  • About
    • About
    • About Doug
    • About This Website
    • Why I Blog
    • Speaking Engagements
    • Contact
    • Publications
  • Archives
    • Topic Archive
    • Book Reviews
    • Most Popular
  • Subscribe
  • Disclaimers
    • Disclaimers
    • Policies and Procedures
    • Use of Site Content
    • Comments
    • FTC Disclosure
Menu

Another Fake COVID Test Fraud

Posted on February 16, 2021February 12, 2021 by Doug Cornelius
Print Friendly, PDF & Email

COVID vaccinations are continuing to roll out and we can hope to see an end to the pandemic. Regulators are continuing to roll out cases against people and companies that tried to illegally profit from the pandemic.

The latest case is against Arrayit Corporation, a life sciences company in Sunnyvale, California. Although a public company, the Securities and Exchange Commission had put a halt to the trading in its shares on public markets in 2015 because the company had failed to file annual reports with audited financial statements. The company failed to respond to auditors requests for information. That moved its share trading to the OTC pink sheets. 

The CEO of Arrayit, Rene Schena, and her brother Mark Schena, President of Arrayit, began telling investors that the reports were coming out and the company had some new revenue sources. 

In March of 2020 Arrayit began making statements to investors.

“Dear [investor], Confirming that we have a SARS-Cov-2 test and that the test is pending emergency approval.”

At that point Arrayit had no reagents needed for a test. Also, Arrayit had not actually applied for Emergency Use Authorization. 

Arrayit took it a step further and told investors that it had received more than 50,000 requests for its finger stick blood test. This was not true. As a result of the untrue or misleading statements Arrayit’s stock price traded up 50% and its volume increased 100%.

The SEC charged Arrayit, Rene Schena, and Mark Schena with fraud. Arrayit and Rene Schena have settled with the SEC. She will pay a $50,000 fine and is barred from acting as an officer or director. Mark Schena’s case is still pending. 

Sources:

  • SEC Charges California Company and Its CEO with Misleading Investors About Covid-19 Blood Test and Financial Reports: https://www.sec.gov/litigation/litreleases/2021/lr25029.htm
  • SEC Complaint against Arrayit and Rene Schena: https://www.sec.gov/litigation/complaints/2021/comp25029.pdf
  • SEC Complaint against Mark Schena: https://www.sec.gov/litigation/complaints/2020/comp-pr2020-224.pdf

Share this:

  • Click to print (Opens in new window) Print
  • Click to share on Facebook (Opens in new window) Facebook
  • Click to share on LinkedIn (Opens in new window) LinkedIn
  • Click to share on X (Opens in new window) X
  • Click to email a link to a friend (Opens in new window) Email

Leave a ReplyCancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search for Stuff

Recent Stories

  • Model Fees Versus Actual Fees in Marketing
  • Compliance Bricks and Mortar for January 16
  • Staff Report on Capital-Raising Dynamics
  • Compliance Bricks and Mortar for January 9
  • “Small”: I Don’t Think You Know What That Means
  • CFTC is Saying Goodbye to Private Funds
  • New York’s LLC Transparency Act Will Remain Limited
  • SEC and CFTC With Only Republicans
  • Compliance Books from 2025
  • Happy New Year

Fight Cancer

Please support my Pan-Mass Challenge
Make a donation to fight cancer. donate.pmc.org/DC0176
pan-mass challenge badge

I am a lawyer, but I am not your lawyer. Since I’m a lawyer, this website may be considered attorney advertising under the ethical rules of certain jurisdictions. Please read my disclaimers page before taking any action. And then, don't take any action based on what I wrote.

Creative Commons logo with the text 'Some Rights Reserved' and three symbols representing attribution, non-commercial use, and share alike.

Compliance Building - by Doug Cornelius is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.