COVID lab sent fake negative test results to people in height of pandemic, feds say
A COVID testing lab in Chicago delivered negative results to people before their tests had even been run, federal officials said.
The owner and operator, 45-year-old Zishan Alvi, pleaded guilty to wire fraud on Oct. 1 for a scheme where he claimed $14 million in government funds, according to the U.S. Attorney’s Office in the Northern District of Illinois.
Alvi’s attorney did not immediately respond to McClatchy News’ request for comment.
From Feb. 2021 to Feb. 2022, the Chicago lab offered a paid service to expedite PCR testing, according to the indictment. The lab would deliver fake negative results before running the tests, according to prosecutors.
If the test later returned positive or inconclusive, the lab would not notify the person, according to court documents. Sometimes, the test would never be run and the specimens were thrown out, prosecutors said.
In an effort to reduce costs, the lab also removed vital materials from the PCR testing process such as reagents, making the tests “unreliable,” according to prosecutors.
The lab billed the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for the tests as part of a program to cover COVID testing for people without insurance coverage, according to court documents.
In order to receive payment for the tests, Alvi’s lab falsified the claims so it could be reimbursed, the indictment said.
Though the millions from HRSA were deposited into the lab’s bank accounts, prosecutors said Alvi transferred some HRSA funds into his personal account. According to court documents, he used the money to purchase cars, stocks and cryptocurrency.
Alvi faces up to 20 years in prison, prosecutors said. He is scheduled to be sentenced on Feb. 7.
This story was originally published October 2, 2024 at 9:50 AM with the headline "COVID lab sent fake negative test results to people in height of pandemic, feds say."
