Pharma startup President convicted in $77 million fake Covid, allergy test scheme

Former Arrayit President Mark Schena has been convicted in a phony Covid testing scheme that reportedly caused $80 million worth of fraudulent claims. Schena, who was convicted on five separate counts, is facing decades in prison, according to the Department of Justice.

Schena was convicted of one count of conspiracy to commit health care fraud and conspiracy to commit wire fraud, two counts of health care fraud, one count of conspiracy to pay kickbacks, two counts of payment of kickbacks, and three counts of securities fraud

The DOJ have alleged Schena misled investors with false claims of a “revolutionary” new technology which would be able to test for virtually any disease, with only a small sample of blood required.

Schena reportedly told investors that his company was valued at around $4.5 billion. The DOJ have said that the reality is much different and that documents which were withheld by Schena showed that he was on the brink of bankruptcy. Schena was also alleged to have said that he was on the “shortlist” for a Nobel Peace Prize.

Prosecutors targeted Schena in 2020 when he reportedly tried to convince his allergy testing kit could detect Covid-19 at the peak of the pandemic.

A criminal complaint was then filed with the U.S. District Court of the Northern District of California claiming that Schena would reach out to potential investors, touting his new product which had developed a test based on, “advanced Silicon Valley technology and finger stick blood collection.”

Prosecutors also alleged that Schena told investors that medical professionals such as White House Advisor Dr Anthony Fauci had mandated both testing and allergy testing for Covid-19. During a time when there was a shortage of testing kits, Schena was reported to have conned patients into paying extra for allergy testing.

Schena’s conviction comes on the back of Theranos founder Elizabeth Holmes being found guilty of defrauding investors over her company’s similar claim about a finger-pricking blood test device.