Zishan Alvi, a 45-year-old from Inverness, Illinois, and co-owner of LabElite, has pleaded guilty to participating in a fraudulent COVID-19 testing scheme that amassed millions of dollars. Alvi used the ill-gotten gains to purchase luxury items, including stocks, cryptocurrency, and high-end vehicles, while also depositing over $6 million in his personal bank account. His guilty plea highlights his involvement in exploiting the federal government’s COVID-19 testing program for financial gain.
LabElite, the company Alvi co-owned, deceived the federal government by billing for COVID-19 tests that were either not conducted or used faulty components, rendering them useless.
Customers who relied on LabElite for COVID testing often received no results or false-negative results, which could have put public health at risk, especially for those needing tests for travel or vulnerable individuals. The fraud targeted the Health Resources and Services Administration (HRSA), which funded tests for uninsured people during the pandemic.
Co-Owner of LabElite Pleads Guilty to COVID-19 Testing Fraud Scheme Raking in Millions
The fraudulent activity spanned from February 2021 to February 2022, during which LabElite scammed the HRSA for over $83 million. The scheme was part of a broader trend of fraudulent COVID testing during the pandemic, with LabElite discouraging customers from providing their health insurance details. This allowed them to charge the government directly for services that were either fake or subpar.
In February 2022, the FBI raided LabElite’s testing site in Chicago as part of a larger investigation into fraudulent COVID-19 testing operations. A year later, in March 2023, Alvi was indicted on multiple charges, including wire fraud and theft of government funds. The indictment sought to reclaim the luxury assets he acquired through the scheme, including several high-end cars, investment accounts, and a substantial personal bank balance.
Alvi’s plea deal, announced by the Department of Justice, includes an admission of responsibility for $14 million in fraudulent claims. He now faces up to 20 years in prison and will be sentenced in February 2025. The luxury items he acquired, including a Lamborghini, Bentley, and significant investment holdings, are subject to forfeiture under the terms of the indictment.
