The owner of a Chicago laboratory has been sentenced to seven years in federal prison for his involvement in a Covid-19 testing fraud scheme. Zishan Alvi, 46, from Inverness, Illinois, operated a lab that conducted Covid-19 tests. In 2021 and 2022, Alvi submitted numerous fraudulent claims to the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for tests that were not performed as billed.
Alvi's laboratory released negative test results despite either not testing the specimens or obtaining inconclusive results due to dilution intended to cut costs. Despite knowing this, Alvi continued to submit claims to HRSA and misled laboratory directors about the fraud. The HRSA paid over $14 million based on these false claims.
Alvi pleaded guilty last year to one count of wire fraud. U.S. District Judge John J. Tharp Jr., during a hearing in federal court in Chicago, imposed the sentence and ordered Alvi to pay more than $14.1 million in restitution. Additionally, Alvi must forfeit over $8 million in cash along with several luxury vehicles previously seized by law enforcement.
The sentencing was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois; Matthew R. Galeotti from the Justice Department’s Criminal Division; Douglas S. DePodesta from the FBI's Chicago Field Office; and Mario Pinto from the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Assistant U.S. Attorney Jared Hasten and Claire T. Sobczak from the Department of Justice's Fraud Section represented the government.
U.S. Attorney Boutros stated: “At the height of the Covid-19 pandemic, Zishan Alvi disregarded public health concerns in favor of greed and his own financial gain.” He emphasized that pandemic-relief programs were meant for safety rather than fraudulent profit.
FBI Special Agent-in-Charge DePodesta remarked: “In the midst of economic uncertainty for many Americans, the defendant chose to cash in on a global pandemic by stealing millions of dollars and committing extensive fraud.”
The Fraud Section leads efforts against health care fraud through its Health Care Fraud Strike Force Program which has charged over 5,800 defendants since March 2007 who have collectively billed more than $30 billion from federal health care programs and private insurers.
More information is available at www.justice.gov/criminal-fraud/health-care-fraud-unit.
