A Chicago lab owner has been dealt a seven-year prison sentence after pleading guilty to orchestrating a fraudulent COVID-19 testing scheme. Zishan Alvi, 46, faced justice today for causing the U.S. Department of Health and Human Services' Health Resources and Services Administration (HRSA) to be billed for COVID-19 tests that were either not conducted or improperly administered.
According to information from the Department of Justice, Alvi's laboratory in Chicago issued negative test results to patients without actually testing the specimens, or after diluting the tests to cut costs, which made the results unreliable. Despite being aware of this misconduct, Alvi directed the laboratory to claim these tests for HRSA reimbursements, leading to over $14 million in fraudulent payments.
The owner's scheme was exposed after an elaborate investigation by the FBI and the HHS Office of Inspector General. Alvi admitted to one count of wire fraud last fall and has now been ordered to return the ill-gotten gains, totaling over $14 million in restitution, and forfeit several high-value assets.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Andrew S. Boutros, Special Agent in Charge Douglas S. DePodesta of the FBI Chicago Field Office, and Deputy Inspector General for Investigations Christian J. Schrank of HHS-OIG, were the ones who announced the sentencing. Alvi's case was prosecuted by Claire Sobczak Pacelli of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jared Hasten for the Northern District of Illinois.
This case is part of a broader federal endeavor to root out health care fraud, managed by the Health Care Fraud Strike Force Program. Since its inception in 2007, the program has charged thousands of defendants responsible for over $30 billion in fraudulent claims. With federal health care programs and private insurers on high alert, the message is clear: fraudulent activities will not be tolerated.
