Man Accused In $83.6 Million Fraudulent COVID-19 Testing Scheme Out On Bond

By Brett Rowland (The Middle Sq.)

A person federal prosecutors allege is answerable for an $83.6 million fraudulent COVID-19 testing scheme is out on bond after placing up the deed to his 5,600-square-foot suburban Chicago dwelling.

Prosecutors don’t simply need the house, which is value no less than $865,000. They’re in search of $83,578,387.89.

Prosecutors are in search of forfeiture of 5 luxurious vehicles and a number of other financial institution accounts. The automobiles embrace a 2021 Mercedes-Benz GLB 250, a 2021 Land Rover Vary Rover HSE, a 2021 Lamborghini Urus, a 2021 Bentley and a 2022 Tesla X. They additional desire a checking account with about $6.8 million, $810,000 in an E*Commerce account, $500,000 in a Constancy Investments account and $245,814 in a Coinbase account, in accordance with court docket information. 

Zishan Alvi, 44, of Inverness, stated Wednesday he plans to combat the costs towards him. 

“We simply acquired to combat this and show my innocence,” Alvi stated. “The reality at all times comes out.” 

He declined to touch upon specifics and referred further inquiries to his legal professional, Murdoch Walker. Walker didn’t reply to an e-mail or return a voicemail in search of remark. 

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Prosecutors allege Alvi co-owned and operated a Chicago laboratory, LabElite, that claimed to supply COVID-19 testing. The lab sought reimbursement for exams that have been by no means carried out, have been carried out improperly, or have been already paid for by the shopper. Alvi faces ten counts of wire fraud and one depend of theft of presidency funds. 

The lab additionally provided a service the place individuals and corporations might pay a price to obtain COVID-19 PCR check ends in an expedited trend. The lab enrolled the U.S. Division of Well being and Human Providers’ Well being Sources and Providers Administration Uninsured Program in December 2020. This system was designed to cowl COVID-19 testing prices for individuals with out medical insurance protection, in accordance with an indictment filed by prosecutors.

Prosecutors stated the lab submitted fraudulent claims and delivered inaccurate and unreliable check outcomes to the general public. The claims sought reimbursement for exams that prosecutors say Alvi knew had not carried out or have been unreliable and in some circumstances had already been paid for by the individual.

Prosecutors stated Alvi supplied unfavorable check outcomes to be launched to individuals who had supplied a specimen for testing, however the check had not been carried out. They additional allege that Alvi directed lab workers to falsely point out in lab information that COVID-19 exams had been carried out for these individuals, when Alvi knew that the check specimens had been discarded at his route and had not been examined. To hide the truth that exams weren’t carried out, the lab “didn’t launch constructive COVID-19 outcomes on specimens the place exams have been finally carried out, as a result of a purported unfavorable end result had already been launched,” in accordance with the U.S. Lawyer’s Workplace. 

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The lab collected greater than $83.6 million from the HRSA Uninsured Program as fee for COVID-19 exams purportedly carried out by the lab. 

“The fees on this case allege that the defendant disregarded public well being issues in favor of non-public monetary acquire,” Appearing U.S. Lawyer Morris Pasqual stated in an announcement. “Doing so by compromising taxpayer-funded packages meant to combat the unfold of coronavirus was significantly reprehensible.”

Every depend of wire fraud is punishable by as much as 20 years in federal jail, and the depend of theft of presidency funds is punishable by as much as 10 years in federal jail. 

Alvi put up the deed to his Inverness dwelling as a part of an settlement to be launched earlier than trial, in accordance with court docket information.  

Syndicated with permission from The Middle Sq..