Replies to post #200814 on Arrayit Corporation (ARYC)

[All_In4DNAX]

Plenty of time because the investigation is still ongoing.

[Sloan89RH]

You may be correct in your assessment. I would have thought there would have been more concern about Rene relative to the Dec 31, 2018 CEO letter to shareholders; however, in the complaint they were more focused on the press release about the letter.

[Neotide]

SEC & DOJ Leverage

Alyssa, you might be correct. I'm speculating but both the SEC & DOJ have many options when they try to leverage a conviction. It's starts out with the charges that are on the table today, and then they have a few ways to turn up the heat if there's not cooperation. Looking over the SEC complaint:

The CEO was the primary contact at Arrayit for the audit engagements with the Auditing Firm. However, Mark Schena was often copied on e-mail correspondence between the Auditing Firm and the CEO regarding the status of the audits.

Being the primary contact might be an issue here as they are going to use the "Letter to shareholders" as the basis for fraud as Dr Schena repeatedly said that the financials would out in Q1 but they both knew that they cut communications with the auditor and there was no way that was going to happen. Sending over state lines is why the Postal Inspector is involved.

So, first they will be coming after Mark personally with up to 80K per each act of the fraud. Every email they sent to each shareholder could be considered a separate act so you can see they can really dial up the heat in fines let along jail time.

Given the "CEO" was listed many times in the SEC complaint and outlined in the DOJ complaint as putting together sham contracts for bribes and kickbacks leads me to believe they might be more charges to come. Again, I'm speculating but it's certainly not unheard of.

As for ARYC as a going concern they have some huge monetary hurdles to jump. Fighting both the SEC and DOJ will be expensive not to mention the other outstanding lawsuits. Given that the audit firm was owed 100K lends more credibility to the DOJ saying ARYC is "broke" or at the very least strained financially.

So I don't believe they will just remove Dr Schena and go about their way. Even if I'm way off base the existing hurdles are pretty large even in the best case scenario.

Let's see how it goes.

[123crazyjerry]

Alyssa, in your opinion, do you think us longs have a chance here again, with some kind of out-of-the grey area, run up the latter, a wee bit, like maybe .004 or .005?