Man Pleads Guilty to Falsifying and Not Performing Covid-19 Tests
Zishan Alvi has pleaded guilty to his role in a COVID-19 scam testing scheme. He pleaded guilty and faces up to two decades in prison. Photo Credit: LabElite promotional material.
Alvi owned and operated LabElite, a laboratory in Chicago that performed testing for COVID-19. From February 2021 through February 2022, LabElite submitted claims to the U.S. government for COVID-19 tests that were not performed as billed, prosecutors say.
Inclusive Tests and Tests That Weren’t Performed
LabElite sent negative COVID-19 test results to patients, even when they knew the results were inconclusive. In some cases, LabElite didn’t even perform the tests. Then LabElite billed the Department of Health and Human Services (HHS) for the tests. Alvi also charged extra for expedited testing, even if the results were inconclusive, according to the March 2023 indictment.
As the owner of LabElite, Alvi not only knew about the fraud but also caused it to happen, prosecutors argued. HHS paid LabElite more than $14 million in fraudulent claims.
It all came to light when the FBI raided LabElite in February 2022, confirming that they were “conducting court-authorized law enforcement activity in that vicinity” later that day, according to CBS News.
Statement by Illinois Attorney General
The Illinois Attorney General’s office also issued the following statement:
“Attorney General Raoul is absolutely committed to protecting residents from those who attempt to profit off of the deadly COVID-19 pandemic. We are in regular contact with Illinois residents who reach out to our office with complaints related to COVID testing locations around the state. As a result, today investigators from the Attorney General’s office and other law enforcement partners are taking action. We will not comment on active investigations as we work to hold accountable individuals who engage in unlawful conduct.”
Alvi pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on Feb. 7, 2025, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Other Chicago Labs Investigated for COVID-19 Fraud
This lab wasn’t the only one involved in the investigation. According to USA Today, during the same time, a lab called Doctors Clinical Lab and its subsidiary, The Center for COVID Control, were under investigation for “providing inaccurate and deceptive” test results, while in Chicago, two more labs were under investigation by the Illinois Department of Public Health – O’Hare Clinical Lab and Northshore Clinical Labs.
Feds Recovered $1.4 Billion in Fraudulent Pandemic Claims, More to Come
This is just the tip of the iceberg, as thousands of people stole from COVID-19 benefits programs during the pandemic.
According to a Justice Department report, multi-agency task forces have recovered about $1.4 billion in stolen funds via COVID-19 relief programs.
Daryl Richmond of California was convicted of stealing $1.4 million in COVID-19 funds while he was in prison.
Another case happened in October 2023, when 17 employees of the Broward County Sheriff’s Department were indicted, accused of fraudulent COVID-19 relief funds claims. Deputy Stephanie Smith was sentenced to 7 months in prison.
Dennis W. Haggerty, a 48-year-old man from Burr Ridge, Ill., was sentenced to spend six years and five months in federal prison for misappropriating over $1.85 million in COVID-19 test kit fraud.
U.S. Chief Army Warrant Officer Two Dara Buck received a four-year sentence in January for scamming PPP and other COVID-19 relief funds.
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