NEW YORK – The US Department of Justice said last week that the former CEO of Decision Diagnostics was sentenced to seven years in prison for a securities fraud scheme and obstruction of a related investigation by the US Securities and Exchange Commission (SEC).
According to the government, Keith Berman, Decision Diagnostics' CEO and sole director, defrauded investors of roughly $28 million by claiming to have developed a 15-second finger prick blood test for COVID-19.
Additionally, Berman told investors that the US Food and Drug Administration was on the verge of giving the test Emergency Use Authorization, concealing from them that he knew the test was unable to meet the required clinical performance.
As part of his scheme, Berman created a fake persona that he used to make false statements regarding the company on internet message boards as well as a fake persona he used to direct an investor to write false and threatening letters SEC management, attempting to obstruct an investigation into his conduct.
Berman pleaded guilty on Dec. 7, 2023, to securities fraud, wire fraud, and obstruction of an official proceeding.