After a federal trial spanning two weeks, a 64-year-old Chinese national, Jia Bei Zhu, was found guilty of orchestrating a fraud scheme involving over one million non-compliant COVID-19 test kits in the U.S. during the pandemic peak.
Federal prosecutors revealed that Zhu had flouted essential safety regulations by importing and selling these faulty diagnostic tools that did not meet the stringent standards deemed necessary for public health emergencies.
This fraudulent operation not only resulted in substantial profits for Zhu, nearly $4 million, but also posed significant risks to the public by providing unreliable results during a time of national crisis. It was reported that Zhu operated out of a concealed biolab in Reedley, California.
Zhu faced a dozen charges, including conspiracy and wire fraud, as well as the distribution of misbranded medical devices and making false claims to the FDA. His company, Universal Meditech (UMI), was found to have systematically misled both consumers and regulators by promoting its COVID-19 test kits with completely fabricated credentials.
Claiming that its products were “FDA-approved” and manufactured in the U.S., UMI was later found to have imported substandard tests from China, repackaging them with misleading labeling. In court, witnesses described how these kits were often missing key components and unable to correctly detect the virus.
The U.S. Attorney, Eric Grant, stated that the verdict was a crucial accountability measure for actions that exploited a public health crisis for personal gain. He underlined the seriousness of Zhu’s deceptive practices during a critical time.
During the trial, it came to light that Universal Meditech lacked the necessary infrastructure to manufacture legitimate COVID-19 diagnostic tests. Instead, Zhu relied on low-cost, inferior imports from China, dressed up as compliant products.
Federal prosecutors pointed out the alarming absence of professional oversight at the Reedley facility, with many employees lacking formal medical or scientific training. Some former staff testified about the lab’s troubling internal culture, acknowledging that fear of retaliation, even threats of violence from Zhu, kept them complicit in the operation.
In December 2022, a routine investigation into a code violation at the lab revealed a shocking array of hazardous biological materials, including pathogens like HIV and COVID-19, improperly stored in household containers instead of safe biohazard vessels, flagrant violations of safety protocols.
Zhu’s arrest in 2023 shed light on serious gaps in national biosecurity, prompting legislators to introduce a federal bill in 2025 aimed at increasing oversight of private labs and enhancing regulations related to high-contaminant materials.
Federal authorities reiterated their commitment to prosecuting those who jeopardize public health through fraud, especially in areas that heavily impact community safety.
Zhu’s business partner, Zhaoyan Wang, was also charged but fled the U.S. prior to her arrest and is now considered a fugitive believed to be in China. As the investigation unfolded, Zhu and Wang attempted to escape detection by rebranding their operation and relocating, during which Zhu even used the alias “Qiang ‘David’ He” to mislead authorities.
Scheduled for sentencing in August, Zhu could face decades in federal prison if the maximum penalties are applied.
The FBI emphasized its commitment to maintaining the integrity of the medical supply chain critical to Americans.
