Silicon Valley-based Medical Technology Company President Sentenced to Eight Years in Prison for Fraud” provides a detailed account of the legal consequences faced by Mark Schena, the president of a prominent medical technology company. Schena has been sentenced to eight years in prison and has been ordered to pay a staggering $24 million in restitution. This verdict emerges from his involvement in two fraudulent schemes, one relating to the defrauding of investors and the other connected to health care fraud and illegal kickbacks concerning COVID-19 and allergy testing. In addition to falsely claiming the invention of a revolutionary disease testing technology and misleading investors, Schena’s company, Arrayit Corporation, conducted unnecessary allergy tests and paid significant kickbacks to marketers. Furthermore, Schena took advantage of the nationwide shortage of COVID-19 testing by falsely announcing that Arrayit possessed a test for the virus while simultaneously engaging in deceptive marketing practices. The Department of Justice, along with support from the FBI and Department of Health and Human Services Office of Inspector General, thoroughly investigated this case, highlighting the severity of these fraudulent activities within the medical technology industry.
In recent news, the president of a Silicon Valley-based medical technology company, Mark Schena, has been sentenced to eight years in prison and ordered to pay a staggering $24 million in restitution. This severe punishment comes as a result of Schena’s involvement in multiple illegal activities, including defrauding investors and committing health care fraud.
Falsified Claims and Misleading Investors
One of the key aspects of Schena’s fraudulent activities was his false claim of having invented a revolutionary technology for disease testing. Through this deceitful assertion, Schena managed to deceive investors and create an illusion of immense company value. By misleading investors about the revolutionary nature of his technology, he was able to secure significant funding for his company. However, this claim turned out to be nothing more than a calculated fabrication.
Additionally, Schena engaged in misleading investors about the true value of his company. By presenting inflated figures and misrepresenting the company’s financial standing, Schena manipulated potential investors into pouring their money into his enterprise. This unethical behavior not only defrauded countless individuals but also undermined the integrity of the investment process within the medical technology industry.
It is essential to acknowledge the role played by Arrayit Corporation in Schena’s schemes. Arrayit Corporation, with Schena serving as the president, was actively involved in these fraudulent activities. The company, under Schena’s leadership, further perpetuated the deception by running unnecessary allergy tests and participating in illegal kickbacks.
Unnecessary Allergy Tests and Illegal Kickbacks
Arrayit Corporation, the company led by Mark Schena, was heavily involved in unethical practices related to running unnecessary allergy tests. These tests, ultimately serving no legitimate medical purpose, were utilized as a tool to defraud both patients and insurance companies. By capitalizing on people’s medical concerns and manipulating the system, the company generated significant revenue through these fraudulent practices.
Moreover, Arrayit Corporation engaged in the payment of illegal kickbacks to marketers. This immoral tactic aimed to incentivize marketers to promote and sell the unnecessary allergy tests mentioned earlier. By providing financial incentives to these individuals, Schena and his company sought to expand their fraudulent activities and maximize their ill-gotten gains.
Exploiting COVID-19 Testing Shortage
As the COVID-19 pandemic swept across the globe, testing became a critical component in managing the crisis. Mark Schena saw an opportunity to further his fraudulent schemes by falsely announcing that Arrayit Corporation had developed a COVID-19 test. This deceptive claim preyed upon the nationwide shortage of COVID-19 testing kits, providing Schena and his company with an exploitative advantage.
Exploiting the desperation and anxiety surrounding the pandemic, Arrayit Corporation engaged in a deceptive marketing scheme. This scheme aimed to persuade individuals and institutions to invest in and utilize their fraudulent COVID-19 test. By capitalizing on fears and uncertainties, Schena and his company not only propagated false hope but also profited from the collective vulnerability that gripped the nation.
Investigation and Agencies Involved
The severity and magnitude of Mark Schena’s fraudulent activities prompted an extensive and thorough investigation by various agencies. The Department of Justice, tasked with upholding the integrity of the legal system, played a significant role in unraveling the intricate web of deceit woven by Schena and his company.
Collaborating closely with the Department of Justice, the Federal Bureau of Investigation (FBI) dedicated its resources to the investigation. Drawing upon their expertise and capabilities, the FBI meticulously examined the evidence and delved into the complex network of individuals and entities involved in this case. Their relentless efforts ensured that no stone was left unturned in the pursuit of justice.
Additionally, the Department of Health and Human Services Office of Inspector General played a vital role in shedding light on the healthcare fraud committed by Mark Schena and Arrayit Corporation. Their expertise in the field of healthcare oversight and their commitment to safeguarding the interests of the public proved instrumental in holding Schena accountable for his actions.
In conclusion, Mark Schena’s conviction and the subsequent sentencing of eight years in prison, along with a restitution order of $24 million, serve as a stern warning to those who exploit the trust of investors and engage in fraudulent activities. The severity and scope of Schena’s crimes should serve as a wakeup call for the medical technology industry to strengthen regulations and practices to prevent such reprehensible behavior in the future. Through the collective efforts of the Department of Justice, the FBI, and the Department of Health and Human Services Office of Inspector General, justice has been served, sending a clear message that fraudulent activities will not be tolerated within our society.