Jury convicts Fresno biolab operator of COVID test fraud and false statements to FDA

Webp ckzvvqkio8leupkx88sv4fkmab8s
Eric Grant, U.S. Attorney for the Eastern District of California | Official Website

Jury convicts Fresno biolab operator of COVID test fraud and false statements to FDA

A federal jury convicted Jia Bei Zhu, a Chinese national, on May 6 for selling over a million fraudulent COVID-19 tests through his company Universal Meditech Inc. in Fresno and lying to the Food and Drug Administration about his identity and role. U.S. Attorney Eric Grant announced the verdict following a two-week trial.

The case highlights concerns about public health risks when medical devices are misrepresented during emergencies such as the COVID-19 pandemic. The prosecution said Zhu's actions endangered consumers by distributing faulty test kits at a time when reliable testing was crucial.

“This verdict holds the defendant accountable for actions that exploited a public health crisis for his own gain. He flouted the lawful authority of the FDA and deliberately deceived the public by repackaging low-quality, foreign-made test kits at a time when accuracy and reliability were critical,” said U.S. Attorney Grant. “This conduct, tied to the unlawful operations uncovered at the Reedley laboratory, put lives at risk. Our office remains committed to prosecuting those who endanger the public through fraud, especially in matters affecting the health and safety of our communities.”

Special Agent in Charge Robert Iwanicki of FDA’s Office of Criminal Investigations added: “The defendant’s scheme to distribute medical devices that were misbranded and falsely represented as FDA-approved undermined public health during a critical time... We will continue to investigate and bring to justice those who threaten the health of consumers by evading FDA requirements.”

Evidence showed Zhu conspired with others from August 2020 through March 2023 to import faulty tests from China, falsely claiming they were authorized by FDA, made in America, produced with certified labs, or effective. Employees testified they were instructed by Zhu to make these false claims under threat of job loss or harm.

Victims reported receiving incomplete test kits unable to detect COVID-19 effectively. The scheme was exposed after an inspection revealed unsanitary conditions at UMI’s facility—including pathogens stored improperly—and boxes containing imported tests from China.

Zhu attempted to evade legal action by moving operations from Fresno to Reedley under a new name but was later identified meeting with investigators while using an alias. His partner Zhaoyan Wang remains wanted after fleeing overseas before his arrest.

Zhu faces sentencing on Aug. 24 with potential penalties including up to 20 years per wire fraud count; actual sentences will be determined according to federal guidelines.

The Federal Bureau of Investigation and Food and Drug Administration led investigations into this case alongside Homeland Security Investigations. According to information from the official website, The U.S. Attorney for the Eastern District of California represents federal interests across more than 87,000 square miles in Northern California—including offices in Sacramento, Fresno, and Bakersfield—and prosecutes criminal violations while managing civil litigation.