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COVID-19 Related Criminal Fraud Charges

| Jun 18, 2020 | Firm News

On June 8, 2020, the District Court for the Northern District of California unsealed a criminal complaint against Arrayit Corporation’s CEO, Mark Schena, charging Mr. Schena with multiple counts, including a count of conspiracy to committ healthcare fraud.  The alleged fraud centered around Arrayit’s claims that the corporation could perform testing for COVID-19 based on a pin prick blood sample.  Arrayit had no COVID-19 test at the time.  After obtaining the patients’ Medicare information, defendant would submit claims for reimbursement from Medicare for 120 allergens, a much more lucrative scope of testing.  Those tests, however, were neither medically reasonable nor necessary.  The Department of Justice has alleged that since March 2020, the Arrayit sought reimbursement for $69 Million worth of medically unnecessary allergy tests.  To read about the case and link to the unsealed criminal complaint and affidavit in support, go to https://www.medtechdive.com/news/doj-charges-arrayit-exec-coronavirus-test-fraud-theranos-parallel/579530/