Covid-19 Category Archives — Securities Fraud Lawyers Blog Published by Securities Fraud Attorneys

Organizer of $77 Million COVID-19 and Allergy Testing Scheme Convicted on Securities Fraud Charges

Published on: September 12, 2022 | by Savage Villoch Law, PLLC

On September 2^nd, 2022, the United States Department of Justice (DOJ) announced that Mark Schena, the president of a Silicon-Valley medical technology company, was convicted by federal jury for his role in a $77 million fraudulent Covid-19 and allergy testing scheme. [1]

The jury convicted Schena of three counts of securities fraud, two counts of payment of kickbacks, one count of conspiracy to pay kickbacks, two counts of health care fraud, and one count of conspiracy to commit health care fraud and conspiracy to commit wire fraud. [1] While he won’t be sentenced until early 2023, Schena faces a maximum of 20 years for each count of securities fraud alone. [1]

While this case draws quite a few parallels to the early-2022 trial and eventual conviction of Elizabeth Holmes, the founder of Theranos, it has thus far drawn far less media attention. [2] Still, Schena’s conviction provides another important glimpse into the dangers investors may face when dealing with alleged cutting edge or “revolutionary” technologies.

Tracing the Economic Impacts of the Pandemic: A Rise in Margin Investing

Published on: December 20, 2021 | by Savage Villoch Law, PLLC

As the world buckles in and adjusts itself to the newest wave of COVID-19, global economies appear to be looking to do just the same. In fact, central banks across the globe are now pivoting away from economy-stimulating monetary policies implemented at the start of the pandemic and toward tighter policies with higher interest rates. [1]

At the heart of the decision to pivot in this manner has been a focus on steadily rising inflation, which some policymakers fear the pandemic’s longevity will only amplify. [1] This fear stems from the fact that in large part, populations are learning to coexist with the virus.

As time passes and each new wave appears, is studied, and spreads toward dominance, people become generally better equipped to deal with the pandemic’s impacts – economic and otherwise. Whether because of rising vaccination rates or better overall caution and awareness, many now agree that the largest current threat to the economy is inflation rather than COVID-19. [1]

Beware of Stock Fraud Related to Alleged Cures and Treatments in the Covid-19 Era

Published on: August 5, 2020 | by Savage Villoch Law, PLLC

Stock fraud is awful, but it should not surprise you that it happens. There are bad people out there who think nothing of stealing money from anyone they can. Stock fraud, I bet, has been happening since corporations became a thing.

Stock fraud may occur when a company defrauds investors when convincing them to buy shares in their company. The investment fraud may be a market manipulation scheme. It may be an unethical brokerage firm forcing their brokers to sell the ‘stock of the day’ knowing full-well the stock is not worth a fraction of what the price the sell to you.

But, perhaps the worst form of stock fraud, to my mind, is the stock fraud that takes advantage of people’s fear about current events. Understandably, potential investors or victims of fraud are today extremely concerned and frightened about catching Covid-19. This is especially true for that frequent target of fraudsters, older people. Not only is this segment of the population more vulnerable to Covid 19, but their fears are likely at a higher level. This set of circumstances just creates a more fertile ground for investment fraud that takes advantage of loneliness and fear such as we have today with the pandemic. So, it is vital to get the word out to older people and their children or caretakers to be especially vigilant about investment fraud phone calls.