Arrayit Corporation (EM) (ARYC)

Legal Update

The U.S. Supreme Court on Monday declined to review the conviction of a former California biotech president sentenced to eight years in prison for lying about the efficacy of his company's COVID-19 and allergy testing and conducting a $70 million Medicare fraud scheme.
The high court denied a petition filed by former Arrayit Corp. President Mark Schena, who was found guilty in 2022 of nine counts of healthcare fraud, securities fraud and illegal kickbacks. As is customary, the justices did not give an explanation for rejecting the case.

The SEC Case against Dr Schena continues as he serves out his prison term:

Joint Trial Setting Conference Statement April 30, 2026
Fact Discovery Cutoff April 30, 2026
Trial Setting Conference May 6, 2026
Deadline for Filing Fact Discovery Motions May 8, 2026
Designation of Opening Experts with Reports May 27, 2026
Designation of Rebuttal Experts with Reports June 29, 2026
Expert Discovery Cutoff July 29, 2026
Deadline for Filing Expert Discovery Motions August 3, 2026
Deadline for Filing Dispositive Motions August 28, 2026

As of April 2026, Arrayit Corporation (ARYC) operates as a Sunnyvale-based life sciences company focusing on microarray technology, providing tools for protein and DNA analysis to research, clinical, and pharmaceutical laboratories. The company, founded in 1993, is currently traded in the restricted Expert Market with a stock price listed at $0.0001 as of late April 2026.

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Saw that too, odd that the article comes out this long after. In German as well. Kinda weird. You have any thoughts or just take it for what it is 

31. März 2026, 21:35 Uhr
Arrayit Corporation: A Cautionary Tale of Fraud and Investor Wreckage

The story of Arrayit Corporation serves as a stark warning in the biotech investment landscape. Once a promising entity in the life sciences sector, the company is now a shell, its equity value obliterated and its operations paralyzed by the fallout from a massive criminal fraud scheme centered on falsified COVID-19 testing. Shareholders face a near-total loss as legal proceedings dominate the company's final chapter.

The U.S. Securities and Exchange Commission (SEC) took decisive action against the firm. In April 2020, trading in Arrayit securities was suspended due to profound concerns regarding the accuracy of its financial reporting and the quality of its promoted blood tests. The company had also failed to submit legally required financial disclosures. In a related settlement, CEO Rene Schena agreed to terms that included a three-year ban from serving as an officer and a financial penalty.

The core of the scandal was a $77 million scheme involving fraudulent billing for both COVID-19 and allergy tests. Former President Mark Schena was convicted of conspiracy to commit healthcare and securities fraud. Evidence presented during the trial revealed that he actively concealed warnings from the U.S. Food and Drug Administration (FDA) about the tests' lack of accuracy. Instead, he issued misleading press releases touting lucrative partnerships that were either non-existent or worthless, all while the company teetered on the brink of bankruptcy. In October 2023, he was sentenced to eight years in prison and ordered to pay $24 million in restitution.

No Path to Recovery for Shareholders

The prospects for remaining equity holders are exceptionally bleak. With no current operational updates and financial reporting at a standstill, the company's narrative is confined to the judicial resolution of its fraud cases. The share price, quoted at $0.000 on over-the-counter markets, reflects a complete evaporation of investor confidence. Given the extensive debts and ongoing criminal liabilities, a corporate restart or any meaningful compensation for shareholders is viewed as highly improbable.

The Arrayit saga underscores the catastrophic consequences when corporate leadership prioritizes deception over science and fiduciary duty, leaving investors to bear the ultimate cost.

quiet here?

question to chatgpt and answer below, why no movement in price very long time?

how do arrayit makes revenue
ChatGPT said:
Arrayit Corporation was a biotechnology company that specialized in microarray technology for genetic and protein analysis. The company primarily generated revenue through:

Microarray Products – Selling DNA, RNA, and protein microarrays for research, diagnostics, and drug development.
Laboratory Equipment & Reagents – Providing tools like microarray scanners, printers, and reagents for sample processing.
Diagnostic Tests – Developing and selling diagnostic tests, such as allergy testing kits.
Custom Services – Offering microarray-based research and development services to biotech firms and academic institutions.
Licensing & Partnerships – Licensing its technology to other companies and forming collaborations in genomics research.

However, the company faced legal and financial troubles, including fraud charges against its executives. Let me know if you're looking for specifics about a certain aspect of their business.

So do I? Anybody else?

Elon Musk wants a trillion?

Funny! Why would he even entertain looking at a company like this?

The board of directors poisoned the well for any serious investors by lying and committing felonies. Or if they did not commit the crimes themselves they looked the other way. This is a company with a black mark on it. Not one that would draw the attention of someone that had 428.6 billion dollars.

That's as funny as when they had the building next to Apple and kept tooting the horn that Steve Jobs should be taking an interest too. Or would issue press releases comparing their twitter followers to Proctor & Gamble, etc.

No, if everything was so rosey with the products and technology they would not have had to resort to puffery and felonies to keep things afloat.

I'm afraid their actions squashed any hope of drawing any attention from the small investment community, let alone the person who has the largest net worth in the world.

Elon Musk is looking for something to do, he could make it work?

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You are probably stuck with them, since I don't know how you would be able to get rid of them.

First, there is basically 0 volume on the stock.

Second, the ask price is 0.000001 and I am guessing that the bid price is no bid. There is now way for the general public to enter in that low of a price. The lowest price that the general public can enter is 0.0001.

lol...I didn't miss out, quite the opposite. To think this was the only stock one would own is quite naive. I'm not here to argue (one love man). And yes, I know I was one of the lucky ones with this ticker.. that's the reason I kept a few throw away shares. 

Free shares? If you owned this scam for any length of time you surely missed out on the greatest bull market in US stock market history. Next time buy quality, audited div-paying issues.

It's been a few years since I've posted, but I still own a few hundred thousand shares and was wondering if I should keep them or get rid of them. I was probably one of the lucky ones who was riding free shares. TIA

They wouldn't reply if we did. Their communication is kinda what got them into some of the trouble they are in. With no obligation to report. They surely won't respond to emails or calls.

know

Anyone mow a contact for Arrayit ?

Schena is still battling the SEC

But it looks like the rest of the legal processes are completed now. I guess dealing with his current prison sentence and the 24M restitution he's got all the time and nothing to else lose when it comes to fighting the SEC. My guess would be they ban him from being a company officer for life and throw him a large fine. Also, Rene took the SEC deal and admitted no wrongdoing and paid 50K, so I'm sure Schena will now take the position it was all Rene when it came to audits and SEC paperwork and he knew absolutely nothing as President of the company. IMHO Just like everything else he tried, I think that approach will fall flat as well.

Never heard what happened in the Dollinger case. Also, not real sure what the current status of the company is at this point either. I read an earlier post that said they were finished but I thought that they were still doing business over the website. If anyone knows please post the status.

All is quiet on the western front?

Restitution

You might want to reach out the contact below

Victim Rights and Contacts: If you believe you are a victim who has invested in Arrayit, or you have taken a COVID-19 test prepared or marketed by Arrayit, please contact: The Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or email us at victimassistance.fraud@usdoj.gov.

How do you restitution from Paul Hajie?

Yes, it has been for quite a while

Is ARYC dead?

Paul Haje caught a break

The Judge showed mercy for Paul:
The Court GRANTS a variance.
The Court sentenced Defendant as follows:
Defendant is sentenced to TIME SERVED as to Counts One and Two of the Information (ECFNo. 1, filed May 25, 2021).
Defendant shall serve a term of three years supervised release as to Counts One and Two of theInformation, to be served concurrently. The Court adopts the Probation Officer’s recommendations as to the standard and special conditions of supervised release.
The Court Orders, as a further condition of supervised release, that Defendant serve 90 days of home confinement; other than attendance for medical, religious and any emergency situation for himself or for his sister – with notice to and permission from Probation, Defendant is confined to his residence for a period of 90 days.
The Court Further Orders, as a further condition of supervised release, Defendant to serve 200 hours of community service; an appropriate community service shall be determined by Probation. A special assessment fee of $ 200.00 is imposed. The Court imposes no fine.
The Court Orders Restitution in the amount of $ 2,472,746.00.
The Court further orders Defendant’s interest in $602,504.00, previously seized, forfeited to the United States. Order to Issue.

Schena got 96 months in prison and the court ordered him to pay $24 million in restitution

So yes, he's on the hook to the tune of 24 Million. How he pays that is another story

Maybe Schena can pay a bunch of restitution too.... and then maybe us bagholders can get a little bit of recompense

I think the shareholders get paid out of the restitution

Here's a decent article: https://thefoxxfirm.com/what-is-the-difference-between-forfeiture-and-restitution/

Who gets the restitution? The stock holders?

Thanks for keeping us informed

Paul Haje Judgement coming Monday

Looks like Haje will be receiving 27-33 months (Recommended at the low end of the sentence for his cooperation). As part of his plea agreement, Haje agreed to pay full restitution in the amount of $2,472,746 and forfeiture in the amount of $602,504.

Final judgement comes on Monday

Trump wins. Mark sits in jail. Aryc is amazing

Appeal Dismissed: This is not a shock to anyone

Now everything turns to the SEC fight. Which of course will go the way of the criminal trial and appeal.

0.000001

Just got this……..The appeal in the case of defendant(s), Mark Schena, was decided on October 22, 2024. The appeal was Dismissed Appellant.

Schena SEC Response

Looks like Schena responded to the SEC complaint, and wait for it............He denied responsibility for everything. Even things that he's been criminally convicted for and is currently sitting in prison. Pretty much saying as President of the company and on the board of directors, everything was done without his knowledge. So looks like the next step is another trial and another defeat. I guess he has nothing to lose at this point. I wonder if the SEC was holding back laughter as they read the response.

Schena thought he was never going to jail. One more needs to join him

And I believe Schena

has to answer to the SEC complaint this week (Oct 19th). Maybe he will drag it out and not accept the settlement. That approach has not worked well for him and I don't see it working well with the SEC.

Here is the SEC suspension:

https://www.sec.gov/files/litigation/suspensions/2020/34-88623.pdf

"The Commission temporarily suspended trading in the securities of ARYC because of questions regarding the accuracy and adequacy of publicly-available information concerning ARYC, including: (1) its financial condition and its operations, if any, in light of the absence of any public disclosures by the company since 2015, and (2) information in the marketplace since at least March 2, 2020, claiming that ARYC developed an approved COVID-19 blood test."

I think you are right

The SEC sure took their sweet time to get around to things. I'm sure when Covid hit, the DOJ had their antlers up and the SEC was already snooping around.

I think that ARYC's fatal mistake was to try to sell stuff for COVID. That brought the wrath of the Fed down on them. This is similar to Al Capone being brought down because of tax evasion. If it wasn't for that, we might still be debating this nonsense on the board today.

Good video

Lots of shades that could be applied to ARYC stock. In general if you are investing in a MEME or penny stocks you are swinging for the fences hoping one hits. And there was certainly a "cult" feeling that was here for years that was out of control once everything started to unwind. Once you start to throw out the basics of investing it becomes more a personal quest. "I invested in this company because I believe in what they are doing. Since they are trying to do good, they must be good and I believe everything they tell me. I don't listen to rational discussion points because I'm sure I'm right and this company is doing what they need to do." And then when things really start to go off the rails "Well, this is just a little set back, even though things are falling to the floor, this is an even better time to buy as I believe in them. Even though there are lawsuits, complaints from employees and business partners, I'm confident they are doing what they need to do to get us all to the promise land."

In full disclosure, I was not one that thought this was a pre-meditated scam. They had a solid business for years and then decided to go public. Dr. Schena went from visiting scholar to President and member of the board. They then had a string of lawsuits over the years/problems with the labor board etc. Seems like every partnership went to the toilet. These were the public events. Who knows what other issues were going on. I'm guessing they quickly started to burn cash and started to embellish where they really were. Embarrassing PR's and Tweets became the norm (and were later found to be criminally fraud). The SEC reporting stopped cold and never resumed. "Private" shareholder meetings & social media releases were given in place of actual SEC reporting. As the pressure mounted, the "Father of Microarray" did a series of missteps which ultimately landed him and others in prison. IMHO these missteps happened because as the company was failing, and instead of just facing the music, his ego would not let him tell the public what was actually going on. Or they just did not have the money to pay the auditors. Maybe it was a mix of both. Since the board was family I'm sure they just looked the other way as the some in the investment community cried foul. The the others in investing community here did not care one bit even though everything was actually burning to the ground. People actually bringing up rational comments were branded "negative" and dismissed. Even when the criminal charges were brought there were many posts here that this was a witch hunt and how dare they do this. Many similarities to the Bed Bath and Beyond investors in the video. Reading the court reports there were people that put hundreds of thousands of dollars in this company (life savings for some) solely on the word of what the Dr. Schena social media told them. We have seen how it has all shaken out in the past couple of years. Criminal convictions with a heavy sentence and restitution for Dr Schena. Heavy losses for some.

So in the end "Buyer Beware" is a saying that everyone should adopt. Everyone has the right to do what they want with their money. If the actions of the board of directors here has not giving you a reason to move along then it's your right to do what you feel is best.

For me, they betrayed the public trust and made a shambles of things all in the name of keeping up with the Silicon Valley Jonses. I don't believe they will ever to be able to raise money again, and even if they do that restitution looms large. If they could not do things the right way when they were public the first time around, what confidence do I have now that there's convicted felons in the mix and their backs are even more against the wall. If there was some magic product or technology sitting around, why was it not successful before everything crashed to the ground? To me that reeks of false promises (this was prove to be true in a court of law), terrible management by the board or both.

Given all of this, if you still believe in the products/company and the management team that's your right. I just hope and pray you don't end up like some of those Bed Bath and Beyond folks who got fleeced and are now wondering what the hell happened.

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No.

See here:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=153533735

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=153535187

They still have patents?

What are your thoughts Neo?

Can’t see it either

The video gives me an error

What was it?

I said good day ;)

You really need to watch the video....