Co-Owner of Chicago COVID Testing Company Defrauded Government of $83M, Used Funds to Buy Vehicles

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Zishan Alvi, the co-owner of a Chicago laboratory company that operated COVID-19 testing sites during the pandemic, is facing federal charges for a scheme in which he took $83 million in government subsidies, directed employees to give patients false test results, submitted claims for tests that hadn't been performed and used the proceeds to buy personal vehicles and make investments.

Zishan Alvi, the co-owner of a Chicago laboratory company that operated COVID-19 testing sites during the pandemic, is facing federal charges for a scheme in which he took $83 million in government subsidies, directed employees to give patients false test results and submit claims for tests that hadn't been performed as well as using the proceeds to buy luxury vehicles and make investments.

Alvi, the owner of LabElite, was indicted by a grand jury Friday on 10 counts of wire fraud and one count of stealing government funds, according to documents filed in the U.S. District Court Northern District of Illinois.

Additionally, to conceal that tests hadn't been done, Alvi is believed to have instructed employees to release negative test results to patients, documents revealed. To reduce costs and increase profits, the laboratory co-owner is also accused of directing employees to alter the lab's PCR testing method by using less of the materials necessary to process the tests, leading to unreliable results, according to prosecutors.

Furthermore, as part of the scheme, federal prosecutors allege Alvi transferred fraudulently-obtained funds from a laboratory account to a personal account and used the funds to purchase vehicles and invest in stocks and cryptocurrency.

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