Zishan Alvi, the proprietor of LabElite, a medical testing laboratory based in Chicago, has admitted to one count of wire fraud, according to a recent announcement by the U.S. Department of Justice. Alvi’s laboratory was issuing negative COVID-19 test results to patients without conducting the tests or when results were inconclusive. This fraudulent activity came to light when patients reported receiving positive test results elsewhere while awaiting results from LabElite, causing confusion over the inconsistent outcomes.
A 2023 court filing by prosecutors detailed that Alvi submitted approximately $83 million in false claims to the Health Resources and Services Administration (HRSA), a sub-agency of the Department of Health and Human Services, from February 2021 to February 2022. LabElite began offering PCR and rapid COVID-19 tests in late 2020, during the initial months of the pandemic.
The FBI raided LabElite in February 2022. Alvi, aged 45, has confessed this week to committing $14 million worth of fraud, admitting he knowingly submitted fraudulent claims to HRSA, the Department of Justice stated.
Reports from Ars Technica indicated that Alvi used the illicit profits to purchase several vehicles and deposited the remainder into traditional bank accounts and a Coinbase account. The vehicles named in the indictment include a 2021 Mercedes-Benz GLB 250, a 2021 Land Rover Range Rover HSE, a 2021 Lamborghini Urus, a 2021 Bentley, and a 2022 Tesla X.
Robert W. Wheeler, Jr., Special Agent-in-Charge of the FBI’s Chicago Office, commented in a 2023 statement that the indictment underscores the FBI’s continued efforts to safeguard Americans and uphold constitutional principles, particularly during vulnerable times such as the COVID-19 pandemic.
Alvi could face a prison sentence of up to 20 years and is scheduled for sentencing on February 7, 2025. The COVID-19 pandemic has resulted in approximately 1.2 million deaths in the United States, with the virus still in circulation. Beyond the financial repercussions, issuing false test results during a health crisis is deemed highly unethical.
Attorney General Kwame Raoul expressed strong condemnation, stating that exploiting a public health emergency to defraud taxpayers and jeopardize public health by providing false COVID-19 test results is unequivocally reprehensible. He extended his gratitude to the United States Attorney for the Northern District of Illinois, the Chicago FBI Office, the U.S. Department of Health and Human Services Office of the Inspector General, and other law enforcement partners who played a role in bringing those responsible for this scheme to justice.
