The ongoing continuances requested by the prosecution indicate to me that they are making progress in hammering out a plea deal.

It is my understanding that very few cases actually go to trial. Trials are hugely expensive and risky.

The case against Schena may not be airtight in all its details, but it still seems overwhelming. At the very least, I have come to the painful conclusion that he did commit securities fraud.

I read through the latest SEC complaint and I am struck by the fact that Rene was not also charged. Mark was cc:'ed on some of the most damning correspondence, and while I don't doubt he was the ringleader, Rene clearly shares culpability. My guess is that they are trying to line up a plea deal by keeping her out.. for now. If she doesn't cooperate they can crush her like a bug.

The other thing that strikes me as is RRBB. The 8-K filing from Arrayit hints at no substantive differences between the two:

"On June 3, 2019, Rosenberg Rich Baker Berman & Company (“RRBB”) ceased services as Arrayit Corporation’s independent registered public accountants. RRBB did not issue any audit reports during the period of engagement with Arrayit Corporation from October 28, 2016 to June 3, 2019.

During the two most recent fiscal years and the subsequent interim period preceding the resignation of RRBB, we had no disagreements with the firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope of procedure.

We provided a copy of the above disclosures to RRBB and requested that RRBB provide a letter addressed to the U.S. Securities and Exchange Commission stating whether or not the firm agrees with the above disclosures. RRBB agrees with the statements concerning RRBB in this Form 8-K. RRBB’s resignation letter and 8-K review letter are included as Exhibits A and B."

The RRBB letter seems to back that up:

We have read the statements made by Arrayit Corporation (“the Company”), which were provided to us and which we understand was filed with the Commission pursuant to Item 4.01 (a) Resignation of Independent Registered Public Accountant in its Form 8-K regarding the change in independent registered public accounting firm. We agree with the statements concerning our firm in such Current Report on Form 8-K.

We hereby consent to the filing of this letter as an exhibit to the foregoing report on Form 8-K.


The SEC complaint indicates that Arrayit failed to cooperate with RRBB from day one. As mad as I am at Arrayit, it seems to me that RRBB helped perpetuate the fraud. They signed off on the SEC filing as if everything was okay and that it was just a parting of the ways. The SEC filing makes clear that RRBB could not provide a valid audit, because Arrayit would not provide the necessary information.

Therefore, it was totally dishonest for RRBB to back up the Arrayit assertion that "we had no disagreements with the firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope of procedure." In fact, there were major and ongoing dispuites between the two.

As much as I'm kicking myself in the ass for believing Mark and Co., he had enablers besides Rene and Jason Nielsen. Hopefully, this is fertile ground for addtioinal civil lawsuits to recover monetary damages.

Amazon is even more ruthless, but the difference is they are in a position to get away with it. Mark was ruthless, but too stupid not to realize it couldn't last. Knowing what I know now, I am surprised that it went on as long as it did, but at some point it was destined to implode.

They had me fooled with the press releases and tweets. I figured there was some exaggeration and that the amounts being billed would be higher than what they would collect. But I didn't think they would dare to lie on the scale they did, because it would eventually come out and they would be prosecuted.

I took all the stuff from PSA with a grain of salt, but I figured Arrayit's own communications had to be basically true or they would wind up where they are now. They will have there day in court, but they are accused of fabricating most of the happy talk and they generated huge criminal and civil liability for themselves by doing so.

What they are accused of seems to have been doomed to failure. I couldn't imagine them being so stupid. Alas, I continually underestimate human stupidity, including my own.

I agree. If they never intended to file and thought raising shareholder expectations to such a high level and then not delivering wouldn't get them in trouble with the SEC, they were idiots.

Even if they intended to, but at the last minute they determined they couldn't, the way they left shareholders hanging would get them in trouble. Even if the numbers weren't audited and contained a reserve for items in dispute with the auditor, they should have found a way to have disclosed some info and gotten ahead of the curve.

It even would have made more sense to have filed for bankruptcy about 3 years ago, instead of embarking on their ruinous course of misleading tweets and questionable sales promotions. The taint of bankruptcy would have been far less than what they face now. Even if Mark isn't convicted, I think the company is ruined.

I am also curious to see all the layers when this onion gets peeled. And like peeling any onion it will bring tears to our eyes.

That's a valid point. If Jason had known in advance that financials wouldn't be published he presumably would have sold during the run-up in price. That the price would drop significantly after the numbers weren't produced was easy to predict.

That whole situation still baffles me. They continued to build up expectations about the financials to the very last minute. Part of me believes that they actually thought that they were going to, but at the last minute ran into a problem with the auditor.

Building up these expectations and failing to deliver was the worst possible strategy.

Because he was released on his own recognizance without having to post a cash bond. The terms of his release probably also forbid travel outside of California. He's not on a tight leash, but he's on a leash.

That would explain things. I knew that something was going on with Taguchi, but I couldn't find out exactly what.
Having Mark as lab director might only be a temporary solution. He may plead out and avoid jail time, but might be barred from that and other activities.

I cannot find them on any of the other lists.
Maybe they got kicked off, because of questions about the validation they supplied to FDA.
Maybe they can resubmit and be re-instated.
Maybe they withdrew voluntarily, because they are so low on cash they can't afford to run the tests.
In any case it is not a good sign.

I have. If Mark was going to be a criminal, he should have converted his place to a meth lab. The shareholders would be better off.

I am truly flabbergasted myself. The scope of the fraud is so large, he had to have know that it couldn't go on forever and that it would end badly. His legacy is in ruins and he has ruined the lives of many others.
He should have gone into bankruptcy a few years ago and tried to have started over. Trying to stay in business through a fraud was the worst possible choice he could have made.

Interesting question. The complaint only refers to Mark - for now - maybe others will be added later.
It is implausible that in a company that small he could run a scam that big all alone without everyone else knowing and being participants.

They are still on the FDA list for serology labs for COVID as of this morning. We'll see how long that lasts.
However, getting an EUA is a different matter. Most of the other labs on this list have been on it quite a while, so meeting the more stringent criteria for EUA is a challenge, even for these other labs.

Indeed, and I still would like an explanation on how this scam works for the Schenas and other insiders.

Last year they worked hard to drive it up to $.20 a share, but they can't afford to sell that many shares without losing control. A high share price in anticipation of a buyout benefits everyone and that strategy makes sense. If you lose ownership via a takeover, make it profitable.

How does a low price benefit them? This grey market debacle, I think, was a grave miscalculation on their part and not their strategy.

Maybe my expectations are a too high, but the daily dollar volume of this stock doesn't excite me for a "pump and dump."

I am not happy with the way things are, but from an absolute dollar and percentage loss standpoint I haven't suffered nearly s much as Mark, Rene, and Todd.

I wonder the same thing.
An update is supposed to take place monthly and this list is from about 7 weeks ago.
I guess it will be updated when they get around to it.

The majority owners are apparently Mark, Rene, and Todd. The had a convoluted scheme that includes 20,000,0000 "C preferred shares" that are convertible to common shares at a ratio of 1:350. They issued about 1,587,000 of these shares to themselves in 2015 in lieu of pay. At that ratio the common share amount they hold is over 555,450,000.

That may be the reason nothing ever gets voted on, because they have a controlling interest. But it is also a strong incentive for them to work towards getting the share price higher.

It is very difficult to understand what is going on behind the scenes.

It looks like that was a typo and they have revised it to IgG


Proprietary Technology
accurate results
Knowing your quantitative levels of immunoglobulin G (IgG) against 12 SARS-Cov-2 biomarkers, we ensure a high degree of accuracy and is forward looking for any possible mutations. Knowing the total IgG value allows the doctor to determine how well your body is responding to the virus in antibody production.
SARS-CoV-2 Test Results
IgG quantitative data
Human Antibody 1 98.2 kU/L
Human Antibody 2 89.7 kU/L
Human Antibody 3 63.2 kU/L
Human Antibody 4 69.0 kU/L
Human Antibody 4 48.6 kU/L


To navigate here you need to go down to the bottom of the normal web page and press the blue button "order your allergy and COVID tests today"

There is no doubt he made himself an easy target by being delinquent for so long.

The reason it could take several days is there might be (could be, should be, is) a review process. Do you think they are going to let any jackass submit paperwork and post it on their website?

From a procedural standpoint they will make sure the form is filled out properly and from a substantive standpoint (without a formal review) they will determine whether it is plausible.

As much as I distrust bureaucracies, I actually believe they are trying to expedite things without making mistakes. But that still probably entails a few days (at best) to do some vetting.

I don't think it is as simple as you make it out to be.

What are you trying to say?
"These SEC is the inevitable consequence of MARK SCHENA"

I find this a bit vague and incoherent.

It appears that the SEC violation is based on the assumption that the test is fictitious. A lot of the companies they suspended had no discernible connection to the products they were selling (and hyping).

A cursory check by the SEC should have shown that Arrayit had submitted a test to the FDA. But that may be easier said than done. Even for equivalent level government officials, getting hold of the right person who could ascertain that for sure might be difficult.

I think our bureaucracy is generally pretty good, but it isn't perfect and mistakes happen.

If the SEC asked the FDA about an approved test they would have been told NO. At that time and until now, none of these serology tests are "approved", but they met the criteria for being allowed.

I don't pretend to fully understand the philosophy of Wittgenstein, But I believe one of his contentions was that philosophical differences boiled done to differences in semantics.
To get the right answer you need to ask the right question and fully understand the meaning that your counterpart places on the words. Word usage is not as universal as some people think. Words mean different things to different people. Precision is important.

Indeed, it was another nail in the coffin. The Jacksonville Clinic did not understand key differences in how the Arrayit allergy tests and COVID test needed to be brought to market.
There are completely different rules of engagement.
To their credit they both acknowledged that this had not been communicated correctly and amended their course of action.
the FDA guidance on COVID testing has been ambiguous and changes rapidly. You could almost come to the conclusion that they don't know what they are doing, but they expect everyone else to anticipate their next move.

Have what? Proof that the SEC was overzealous?
Yes. Thank you for agreeing.

No. Their name was not picked out of a hat.
The SEC received complaints from one and probably more members on this board.
They have the sadz, because ARYC is delinquent. They magnified the complaint because a miscreant Arrayit cheerleader stated that the COVID test that Arrayit has developed is "FDA approved".
The SEC is on high alert for any fraudulent misrepresentation about COVID tests, cures, protective equipment, etc.
It is questionable whether the SEC even checked with the FDA about the status of Arrayit's test.

Where? I looked again and I don't see it.

What fraud?
Please explain.

That theory of fraud is questionable, unless RRBB was a co-conspirator.
The 8-K from Arrayit basically states that during RRBB's tenure as auditor "we had no disagreements with the firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope of procedure."
RRBB supplied a letter affirming this:
"We have read the statements made by Arrayit Corporation (“the Company”), which were provided to us and which we understand was filed with the Commission pursuant to Item 4.01 (a) Resignation of Independent Registered Public Accountant in its Form 8-K regarding the change in independent registered public accounting firm. We agree with the statements concerning our firm in such Current Report on Form 8-K."
The RRBB affirmation is difficult to reconcile with the notion that cooperation ceased in Oct. 2018.
I think the disagreements involved shady financial dealings that preceded RRBB's involvement. Keep in mind they were trying to also provide audited records for the time interval after the last accounting firm quite and they began.
That may not have involved any fraud, but the bookkeeping was so murky they couldn't sign-off on it.

I kinda doubt that line of reasoning.
The FDA is only concerned with whether the test works and can be validated by independent laboratories.
The SEC only cares about whether information was disseminated to influence the stock price and mislead investors.
I suspect both agencies are very protective of their prerogatives. I have trouble envisioning the FDA allowing the SEC to dictate whether they can approve a test, if the determine that the test itself is not fraudulent.

Happy Mothers Day! To all the mothers on the board:
We appreciate your tolerance for all of our indiscretions and idiotic comments.
We thank you for your indulgence in our childishness, but mostly we thank you for bringing us to life as imperfect as we may be.
Mothers, givers of life, we salute you!

Others may have answered your question, but the instructions are the same place now as when they were first discovered - under the menu tab.
It's anyone's guess how long it had been there before it was noticed.
The purpose for posting it seems to be for the clinics they work with. The new website is mainly geared to them and other B2B communication. There is virtually nothing for investor relations, etc.

I get the impression that it was alleged that pumpers like PSA were in cahoots with ARYC. I don't think there was any such collusion, but it appears the SEC may have thought otherwise.
I would think that if they continue investigating they will determine that Arrayit wasn't pumping either overtly or covertly.
A lot of the other suspended companies were issuing very florid PRs touting their COVID response products, but Arrayit was doing none of that and I don't think they were working with anyone behind the scenes to do it on their behalf.
I suspect this isn't over and we'll find out for sure.

The SEC didn't specifically say "pump and dump", but the accusation about an "FDA approved test" means that they suspected an attempt was being made to manipulate the stock price.
The SEC is concerned with false information that will influence investment decisions and that's why they suspended ARYC.
I don't know if the SEC would use the common phrase "pump and dump" in a legal filing, but I'm pretty sure that is what they had in mind.

That's an ironic view of the situation isn't it?
They got suspended for supposedly running a "pump and dump", but the price and volume action undermines that assertion.

Thank you very much for all your DD on this!
I greatly appreciate it.

Is anybody planning to ask Mark if this is a typo or if it is intentional?

Thank you for clearing this up.

True. A potential suitor would want to see fins, but they might be satisfied with less information than required for an SEC filing.
Releasing fins, especially good ones would raise any buyout offer.

Unless of course.... the lack of information tricks shareholders to being satisfied with a lower buyout offer and Mark, Rene, and Todd are offered lucrative retention bonuses and long term contracts that make it attractive to them.

Is that how you were going to finish that sentence?

Yes, but they can't afford to develop and bring new applications for their technology to market. They are under-capitalized and their cash flow severely limits what they can do.
Either a larger pharma of even a venture capitalist with deeper pockets could make Arrayit into a powerhouse.
Unfortunately, current investors will not reap the rewards from that.

I keep thinking the same thing. Unless something changes dramatically in the near future; release of financials and EUA approval - they will languish on their own as an independent company.

A buyout would limit both the upside and downside, which in some respects is unfortunate, because properly run they have huge upside potential.

It might be best for Mark and Rene too. Mark is a better scientist than businessman and he could get back to doing what he does best,if he and Rene were freed from all the administrative duties.

Explain your math please. At what cost per test?

CJ, I wasn't talking about how many blood cards they can analyze in a day. You're right. That probably is a high number.
I was trying to figure out what the $240,000,000 test kit run that they commenced in August, 2019 was actually referring to.