SEC Charges California Trader in COVID-19 Fraud Schemes

The Securities and Exchange Commission (SEC) charged California trader Jason C. Nielsen with fraudulent investors through COVID-19 fraud schemes involving a company called Arrayit Corporation.

10 June, 2020 | AtoZ Markets –  Arrayit Corporation (ARYC) founded in 1993, is a life sciences company providing life science tools and integrated systems for the analysis of genetic variants, biological functions, and diagnostics.

SEC Charges A Trader Engaged in Manipulative Trading Scheme 

SEC said that it charged a stock trader named Jason C. Nielsen for implementing a pump and dump scheme that promotes inaccurate information of coronavirus pandemic about Arrayit’s activities. Jason Nielsen advertised that Arrayit had developed an approved COVID-19 blood test, according to the SEC.

“Nielsen owned about 10% of common stock of Arrayit. He posted numerous false and misleading statements in an internet forum called Investors Hub to drive up prices of shares. Then he sold them at artificially inflated prices,” the SEC said. According to the SEC, Nielsen also used a market-manipulation technique called “spoofing” to create a false demand for common stock of Arrayit. SEC also stated:

“Nielsen made approximately $137,000 in six weeks. But based on questions regarding the accuracy and adequacy of publicly available information concerning Arrayit, the SEC temporarily suspended trading in Arrayit securities on April 13, 2020. Before Nielsen was able to profit further from the scheme.”

The SEC’s complaint also filed in the US District Court accuses Nielsen of violating the fraudulent provisions of the Federal Securities Act. SEC is asking for civil monetary penalties, Stock ban, and disgorgement with prejudgment interest.

A federal attorney in Northern California has also charged Mark Schena, president of Arrayit Corp, involving in a scheme that misleads investors over the COVID-19 test. The complaint alleges that Shena “misrepresented Arrayit’s ability to provide accurate, fast, reliable and cheap COVID-19 tests.”.

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