The owner of a Chicago laboratory, Zishan Alvi, has been sentenced to seven years in federal prison for his involvement in a Covid-19 testing fraud scheme. Alvi, 46, from Inverness, Illinois, owned and operated the lab that submitted fraudulent claims to the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA) during 2021 and 2022.
Alvi’s lab was found to have released negative Covid-19 test results without conducting the tests or with inconclusive results due to dilution aimed at reducing costs. Despite knowing this, Alvi proceeded to submit claims to HRSA, which resulted in over $14 million being paid out based on these fraudulent submissions. He also misled laboratory directors to hide his actions.
Last year, Alvi pleaded guilty to one count of wire fraud. U.S. District Judge John J. Tharp Jr., who presided over the case in federal court in Chicago, ordered him not only to serve time but also to pay more than $14.1 million in restitution. Additionally, he must forfeit assets including more than $8 million in cash and 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 public safety rather than illegal profits.
FBI Special Agent-in-Charge DePodesta remarked on Alvi’s actions during economic uncertainty: “The defendant chose to cash in on a global pandemic by stealing millions of dollars and committing extensive fraud.” He added that false test results put patients at risk.
The Fraud Section is part of efforts against health care fraud through its Health Care Fraud Strike Force Program which has charged over 5,800 defendants since March 2007 with billing more than $30 billion fraudulently.
