Silicon Valley tech CEO charged in coronavirus test fraud case - Business Insider

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A Silicon Valley tech exec was charged in a coronavirus test fraud case after billing Medicare $69 million for finger-stick test kits and misleading investors

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.The CEO of a Silicon Valley medical company was charged for misleading investors and falsely claiming its blood test for the novel coronavirus was government-approved.

This is the first instance of such a charge related to the COVID-19 pandemic, according to officials.The president of a Silicon Valley medical technology company was charged Tuesday with misleading investors by falsely claiming the company had developed a government-approved blood test for the new coronavirus — the first criminal securities fraud prosecution related to the COVID-19 pandemic, federal officials said.

As the coronavirus pandemic began to escalate, Schena, of Los Altos, instructed patient recruiters and clinics to add its test for the coronavirus, prosecutors said. Arrayit never disclosed that the Food and Drug Administration informed it on April 17 that its COVID-19 test was not at an acceptable level of performance, federal prosecutors said.

 

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