Economic and Consumer Policy Subcommittee Investigation Leads SEC to Suspend Trading of Wellness Matrix Group Stock

Apr 9, 2020
Press Release

Washington, D.C. (Apr. 9, 2020)—Today, Rep. Raja Krishnamoorthi, the Chairman of the Subcommittee on Economic and Consumer Policy, and Committee Member Rep. Katie Porter issued the following statement after the Securities and Exchange Commission (SEC) suspended trading of Wellness Matrix Group’s stock as a direct result of information provided by the Subcommittee’s investigation into the company’s fraudulent claims:

“The SEC’s move to suspend trading is a serious sanction.  We are pleased that our investigation brought attention to a company seeking to take advantage of American consumers during the coronavirus pandemic.  We commend the SEC for quickly taking action on the information and protecting the American people.”

On March 30, 2020, Chairman Krishnamoorthi and Congresswoman Porter sent a letter to Wellness Matrix Group about its sales of unapproved, in-home, coronavirus blood tests and its sales of other suspect coronavirus-related products. 

During the course of the investigation, the Subcommittee discovered that Wellness Matrix Group allegedly provided inaccurate information to the SEC in an official filing.  The Subcommittee pointed the individual making that allegation to the SEC.  Federal securities laws permit suspending trading only when the SEC determines that it is required in the public interest and for the protection of investors. 

Since the Subcommittee launched the investigation into unapproved, in-home, coronavirus test kits on March 24, 2020, four companies have committed to no longer selling at-home test kits, refunded all money collected from consumers, and destroyed all consumer samples collected.

Issues: 
116th Congress