Saturday, October 4, 2025

Chicago Lab Owner Sentenced for COVID-19 Fraud Scheme

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Introduction to the COVID-19 Fraud Scheme

CHICAGO (WGN) – The owner of a laboratory in Chicago has been sentenced to seven years in prison for his role in a COVID-19 testing fraud scheme.

Details of the Scheme

Court documents said 46-year-old Zishan Alvi of Inverness, Illinois, owned and operated a lab in Chicago that conducted testing for COVID-19. In 2021 and 2022, Alvi submitted claims to the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for COVID-19 tests that were either not performed at all or not performed correctly.

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Execution of the Scheme

Furthermore, as part of the scheme the laboratory released negative COVID-19 test results to patients, even though the laboratory either had not tested the specimens or the results were inconclusive because Alvi diluted them to save on costs, thus rendering the tests unreliable, according to court documents.

Knowledge and Involvement of the Lab Owner

Alvi reportedly knew the lab was releasing negative results for tests that were either not performed or inconclusive, but still caused the lab to bill HRSA for the tests.

He also reportedly lied to lab directors to cover the scheme.

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Financial Implications

As a result of the false claims, HRSA paid the lab over $14 million, according to documents.

Sentencing and Restitution

On Sept. 30, 2024, Alvi pleaded guilty to one count of wire fraud. At his sentencing hearing, he was ordered pay over $14 million in restitution and forfeit nearly $6.8 million in cash, a 2021 Range Rover HSE and over $630,000 from an E-Trade account.

Conclusion

The sentencing of Zishan Alvi to seven years in prison for his role in a $14 million COVID-19 testing fraud scheme highlights the severity of such crimes and the importance of accountability, especially during times of crisis like the COVID-19 pandemic. The financial and health risks posed by such schemes are significant, and it is crucial that individuals and organizations involved in healthcare adhere to the highest standards of integrity and ethics.

FAQs

  • Q: What was the nature of the COVID-19 fraud scheme?
    A: The scheme involved submitting false claims for COVID-19 tests that were not performed or not performed correctly and releasing unreliable negative test results to patients.
  • Q: How much did HRSA pay as a result of the false claims?
    A: HRSA paid the lab over $14 million.
  • Q: What was the sentence given to Zishan Alvi?
    A: Alvi was sentenced to seven years in prison and ordered to pay over $14 million in restitution and forfeit nearly $6.8 million in cash and other assets.
  • Q: Why is this case significant?
    A: This case is significant because it highlights the consequences of fraud in the healthcare system, especially during a pandemic, and the importance of maintaining integrity in medical testing and billing practices.
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