California Man Found Guilty of COVID-19 Test Fraud

A federal jury has convicted a man from California, involved in a contentious underground biological lab, for running a fraudulent scheme linked to COVID-19 testing, as prosecutors reported.

Jia Bei Zhu, 64, a Chinese national, was found guilty on all 12 counts, including conspiracy and wire fraud, following a two-week trial in Sacramento, as stated by the U.S. Attorney’s Office.

Prosecutors alleged that Zhu operated his company, Universal Meditech (UMI), from Fresno and sold over a million faulty COVID-19 test kits nationwide, raking in nearly $4 million during the height of the pandemic.

“This sentence holds these defendants accountable for exploiting a public health crisis for their own benefit,” said U.S. Attorney Eric Grant. “He misled the public by repackaging low-quality, foreign-made test kits at a time when accuracy was crucial.”

Officials indicated that the test kits were falsely advertised as FDA-approved, manufactured in the U.S., and produced by accredited labs, but these claims were entirely fabricated.

Evidence presented during the trial revealed that Zhu and his associates imported cheap tests from China, repackaged them, and sold them under false labels. Victims shared that many kits were missing essential components and sometimes didn’t work at all.

Employees testified that they were instructed to deceive customers, fearing backlash if they refused to comply. Interestingly, many of these workers lacked any medical or scientific training and came from unrelated fields like retail or childcare.

Federal investigators reported that deception permeated the operation, from misleading online marketing to false assertions made directly to regulators.

“Defendants’ scheme undermined public health at a critical time,” remarked Robert Iwanicki, special agent in charge of the FDA.

Zhu had previously been scrutinized for connections to an illegal makeshift biolab in Reedley, California, raising concerns about potential biohazards.

The Reedley facility was previously investigated after authorities discovered laboratory materials, mice, and improperly stored substances, but later clarified that these materials did not pose a risk to human health.

Authorities emphasized that the criminal charges currently faced by Zhu are not directly connected to the biological materials discovered during the investigation. Federal agencies concluded that the substances were part of a failed effort to create a COVID-19 test and did not threaten public safety.

Prosecutors pointed out that UMI’s Fresno facility was inadequate for manufacturing coronavirus tests, describing it as an unsanitary warehouse far below required standards.

Zhu’s alleged partner, Zhao Yanwang, has also been indicted but fled the U.S. before being apprehended, believed to still be in China.

Prosecutors said the duo attempted to avoid detection by relocating and rebranding their business, but these efforts ultimately failed as federal agents closed in.

In one instance, Zhu allegedly misled federal officials about his identity, claiming he was someone else recently arrived in the country.

Zhu is set to be sentenced in August and could face decades in prison if given the maximum sentence. Each wire fraud charge carries a possible 20-year sentence.

Federal officials assert that this case indicates the government’s determination to tackle fraud tied to the pandemic.

“Our office remains committed to prosecuting those who endanger the public through fraud,” Grant noted.