FRAUD I CORONAVIRUS FRAUD SCHEMES I FINANCIAL FRAUD I INVESTOR FRAUD I COVID-19 SCAMS – Recent Coronavirus Pandemic Financial Fraud Scheme and Securities Investor Fraud
December 2, 2020
Since the onset of the Covid-19 pandemic, the California Department of Financial Protection and Innovation has seen a forty percent increase in consumer fraud complaints and inquires. The majority of these complaints relate to financial fraud. Specifically, the department has seen an inflow of complaints related to mortgage fraud, student loan and personal loan fraud, and questionable investments or other forms of investor fraud. To shed better perspective on this increase from March 2020 to June 2020 the fraud complaints have increased as follows:
As discussed in previous articles the coronavirus pandemic has unleashed unprecedented numbers of fraud scams. Discussed below is one of the most recent financial fraud schemes surfacing following the pandemic.
Securities Fraud: “pump-and-dump” fraud scam promoting inaccurate information as to biotech companies in relation to the coronavirus pandemic.
The Securities and Exchange Commission issued an order of suspension of trading of the securities of Arrayit Corporation earlier this year in favor of the public interest and the protection of investors. Per the order the trading suspension was issued “because of questions regarding the accuracy and adequacy of publicly-available information concerning Arrayit Corporation, including: (a) its financial condition and its operations, if any, in light of the absence of any public disclosure by the Company since 2015, and (b) information in the marketplace since at least March 2, 2020, claiming the Company developed an approved COVID-19 blood test.” In short the company fraudulently claimed that they developed a “Coronavirus blood test”, these misrepresentations were done with the intent to lure investors.
Investigations revealed that these false representations and fraudulent tactics generated over $137,000 of unlawful stock sales leaving investors with nearly worthless stocks. This is a link to the actual “Order of Suspension of Trading”.
For further articles discussing the unprecedented increase in fraud during Covid please see the links below:
For further articles discussing Coronavirus and Employment please see the links below:
Articles discussing Financial Fraud as it relates to breach of Fiduciary Duties please see the articles listed below:
For other articles discussing the various causes of action for Fraud in California, links are included below:
Our articles discussing Fraud verdicts in California are included below:
Our articles discussing Fraud damages in California are included below:
Our articles discussing Recovery from the Victims Of Corporate Fraud Compensation Fund of California are linked below:
If you or someone you know has fallen victim to a Coronavirus fraud scam, Consumer Fraud scheme or investor fraud we encourage you to call our offices today at 619-432-5145 for a free consultation with one of our Fraud Attorneys and Covid-19 Fraud Lawyers.