Chicago COVID-19 Testing Fraud: Guilty Plea in $14 Million Case

Tuesday, 1 October 2024, 10:48

Chicago COVID-19 fraud is highlighted as the co-owner of a testing lab pleads guilty to a $14 million scheme involving fake results. This illegal practice billed the federal government for unprocessed tests, endangering public safety during the pandemic. LabElite, the implicated company, misled individuals about their COVID-19 test outcomes, showcasing severe negligence in their operations.
Cbsnews
Chicago COVID-19 Testing Fraud: Guilty Plea in $14 Million Case

Chicago COVID-19 fraud has come to light following the guilty plea of Zishan Alvi, the co-owner of LabElite, a COVID-19 testing laboratory based in Chicago. Alvi pleaded guilty to one count of wire fraud for his involvement in a $14 million fraud scheme. From February 2021 to February 2022, LabElite billed the federal government for over 85,000 COVID-19 tests that were never actually processed.

Despite informing patients that they received negative results, many had not been tested at all. Some patients discovered they were positive through other means while waiting for the unreliably processed tests. Alvi's actions prompted the FBI to raid LabElite’s headquarters in March 2023, confirming that not only were the results falsified, but testing methods were also compromised.

Employees were instructed to cut corners, using less of the necessary testing materials, which made the tests unreliable. This resulted in inaccurate information being disseminated, ultimately jeopardizing the health of those relying on LabElite for honest testing. Alvi is set to face sentencing in February, with a potential prison term of up to 20 years.


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