Chicago Lab Owner Pleads Guilty to $14 Million Covid-19 Fraud Scheme
Summary
A press release of the U.S. Attorney's Office for the Northern District of Illinois dated Tuesday, October 1, 2024, announcing that Zishan Alvi, 45, of Inverness, Ill., owner of a Chicago laboratory that performed Covid-19 testing, pleaded guilty on Monday to one count of wire fraud, which is punishable by up to 20 years in federal prison. According to the release, from February 2021 through February 2022 he caused claims to be submitted to the Health Resources and Services Administration for Covid-19 tests that were not performed as billed, while the laboratory released negative results for specimens it had not tested or whose results were inconclusive. It states that HRSA paid the laboratory more than $14 million as a result. Sentencing is set before U.S. District Judge John J. Tharp, Jr.
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Press Release Chicago Lab Owner Pleads Guilty to $14 Million Covid-19 Fraud Scheme Tuesday, October 1, 2024 For Immediate Release U.S. Attorney's Office, Northern District of Illinois WASHINGTON – The owner of a Chicago laboratory has pleaded guilty in federal court for his role in a COVID-19 testing fraud scheme. ZISHAN ALVI, 45, of Inverness, Ill., owned and operated a laboratory in Chicago that performed testing for Covid-19. From February 2021 through February 2022, Alvi caused claims to be submitted to the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for Covid-19 tests that were not performed as billed. As part of the scheme, the laboratory released negative test results to patients, even though the laboratory either had not actually tested the specimens or the results were inconclusive. Alvi knew that the laboratory was releasing negative results for tests that were not performed or were inconclusive, but still caused the laboratory to submit claims to HRSA for those tests. HRSA paid the laboratory more than $14 million as a result of the fraudulent claims Alvi caused to be submitted to HRSA. Alvi pleaded guilty on Monday to one count of wire fraud, which is punishable by up to 20 years in federal prison. He is scheduled to be sentenced on Feb. 7, 2025, by U.S. District Judge John J. Tharp, Jr. in U.S. District Court in Chicago. The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and Head of the Justice Department’s Criminal Division, Chad Yarbrough, Assistant Director of the FBI’s Criminal Investigative Division, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The government is represented by Assistant U.S. Attorneys Jared Hasten and Misty Wright of the Northern District of Illinois, and Claire T. Sobczak, Trial Attorney of the Department of Justice's Criminal Division’s Fraud Section. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . u.s._v._alvi_-_plea_agreement.pdf Updated October 1, 2024 Topics Coronavirus Health Care Fraud Components Criminal - Criminal Fraud Section Federal Bureau of Investigation (FBI) USAO - Illinois, Northern Related Content Press Release Owner of Suburban Chicago Medical Supply Company Sentenced to Five Years in Prison for Procurement Fraud at U.S. Department of Veterans Affairs From 2017 to 2020, the VA overpaid DARREN A. SMITH's company by more than $1.3 million. October 24, 2024 Press Release Former Chief Executive Officer of Chicago Hospital Added to Federal Indictment Alleging Corruption and Embezzlement GEORGE MILLER, JR. allegedly steered vendor contracts to certain companies in exchange for cash. October 11, 2024 Press Release Managers of Suburban Chicago Youth Counseling Center Sentenced to Prison for Defrauding Illinois Medicaid out of $2.5 Million SUMMER MATHESON and TERRENCE EWING, co-managers of Laynie Foundation Inc., along with foundation employee RICHARD GRUNDY, used the Matteson, Ill.-based foundation to seek payment from Illinois Medicaid for non-reimbursable activities. September 17, 2024
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