Authorities said that his company put up the Medicare bill by $69 million for the optional and non-standard testing for allergies and coronavirus, says Fox Business.
On 9 June President of the company medical technologies in Silicon valley have charged that he misled investors by falsely claiming the company has developed, government-approved blood test for the coronavirus. This is the first criminal prosecution for securities fraud associated with the pandemic COVID-19.
Mark Shen, President, Arrayit Corporation, was charged with securities fraud and fraud in the health sector after the authorities said that his company made Medicare a bill for 69 million dollars for unnecessary tests for coronavirus and allergies.
57-year-old Shen touting that the company, based in Sunnyvale, is the only laboratory in the world that offered “a revolutionary technology micrometric”, allowing to test for allergies and a coronavirus using the same set for the collection of blood from a finger.
Starting in 2018 to February 2020, Shen and other employees paid bribes to doctors to they implemented the screening test of 120 allergens from insects to food — every patient.
According to prosecutors, as the pandemic coronavirus was amplified, Shen instructed all “recruited” professionals to add a test for the coronavirus developed by the company.
He was also accused of publishing false statements on social networks and in emails to investors about the ability of Arrayit to provide accurate, fast, reliable and cheap tests for coronavirus in accordance with the rules of the country and the state.
Shen told investigators that, in his opinion, the development of a test for coronavirus on the basis of the test for allergies is simple, “the pastry chef” that proceeds from the sale of “strawberry pies” for sale “rhubarb and strawberry pie.”
In Arrayit never made public the fact that on 17 April, the Office of the food and drug administration evaluated the test company for COVID-19 not corresponding to the acceptable quality level, said Federal prosecutors.
Federal prosecutors also said that the company proclaims its partnerships with companies from Fortune 500, government agencies and institutions of the state, without disclosing the fact that the relationship, or insignificant, or they don’t exist.
According to court documents, the price of the shares of Arrayit by mid-March more than doubled, despite the stock market crash.
“The charm of cheap reliable alternatives to today’s standard panels of blood work has captured the imagination of the healthcare industry, making these alternatives the main subject of speculation scams,” said attorney David Anderson of the Northern judicial district of California.
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