Indictment — United States v. Zishan Alvi, No. 1:23-cr-00142 (N.D. Ill., Dkt. 1)

Summary

An Indictment filed 03/09/23 as Document 1 in United States v. Zishan Alvi, No. 1:23-cr-00142, in the U.S. District Court for the Northern District of Illinois, Eastern Division, citing Title 18, United States Code, Sections 641 and 1343. The Special July 2021 Grand Jury alleges that from in or around February 2021 through in or around February 2022 Alvi caused Laboratory A to submit fraudulent claims to the HRSA Uninsured Program for COVID-19 tests. It alleges that no test had been performed, that PCR methods were altered to use less testing materials, and that Laboratory A obtained over $83 million from the program. Counts One through Five allege wire transmissions on dates from July 9, 2021 to September 3, 2021, and the forfeiture allegation estimates approximately $83,578,387.89.

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Case: 1:23-cr-00142 Document #: 1 Filed: 03/09/23 Page 1 of 21 PagelD #:1

FILED

MAR 09 2023 %
UNITED STATES DISTRICT COURT

THOMAS G. BRUTON NORTHERN DISTRICT OF ILLINOIS MAR - 9 2093
CLERK, U.S. DISTRICT EASTERN DIVISION
UNITED STATES OF AMERICA B ay “5 fa CY
Vv. Violations: Title 18, United States Code,
Sections 641 and 1343
ZISHAN ALVI

UNDER SEAL

COUNT ONE JUDGE MALDONADO

MAGISTRATE JUDGE HARJANI
The SPECIAL JULY 2021 GRAND JURY charges:

1. At times material to this Indictment:

COVID-19 Outbreak and Testing

a. In or around December 2019, severe acute respiratory syndrome
coronavirus 2 (SARS-CoV-2), the virus that causes coronavirus disease (“COVID-19”),
began to spread throughout the world.

b. Various tests to detect for SARS-CoV-2 were developed, including
a type of testing known as polymerase chain reaction tests (“PCR tests”). PCR tests
required the use of an adequate amount of certain testing materials, including
reagents, to render reliable results.

C. Individuals sought testing for COVID-19 for a variety of reasons,
including for diagnosis when suffering from COVID-19 symptoms, and in advance of
engaging in certain activities, like airplane travel and planned contact with others
who, due to age or health conditions, were at higher risk of death or severe illness

from COVID-19. Some individuals who were tested used their test results to help
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determine whether or not to engage in future activities, such as travel or contact with
others. Individuals often needed their test results within a short period of time before
engaging in such activities.

The HRSA Uninsured Program

d. In or around March and April 2020, multiple federal laws were
enacted that provided funding for COVID-19 testing for individuals for whom
COVID-19 testing was not covered by health insurance, including the Families First
Coronavirus Response Act, the Coronavirus Aid, Relief, and Economic Security Act,
and the Paycheck Protection Program and Health Care Enhancement Act.

e. The Health Resources and Services Administration (“HRSA”) was
an agency of the U.S. Department of Health and Human Services that oversaw and
administered the funds appropriated through federal legislation to cover the costs of
COVID-19 testing for individuals without health insurance coverage (“the HRSA
Uninsured Program”).

f. To participate in the HRSA Uninsured Program and receive
reimbursement for COVID-19 testing, a provider had to attest to compliance with the
Terms and Conditions for Participation in the HRSA Uninsured Program (“HRSA
Terms and Conditions”). The HRSA Terms and Conditions required the provider to
submit truthful information when it submitted claims for reimbursement for COVID-
19 testing, and to certify that, among other things: the provider had administered a

diagnostic test for COVID-19; the provider would not be reimbursed for the test from
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another source; and all information provided in the claim was true, accurate, and
complete, to the best of the provider’s knowledge. HRSA required claim information
to include the individual’s name and date of birth; the testing provided; the location
where the testing was provided; and the amount to be charged to HRSA for each test.
HRSA paid for COVID-19 tests for which a representation had been made that the
testing was done pursuant to the HRSA Terms and Conditions, and that the
information provided about the test and the individual being tested was accurate.

Laboratory A and ZISHAN ALVI

g. Defendant ZISHAN ALVI co-owned and operated Laboratory A,
a laboratory located in Chicago, Illinois. ALVI maintained an account at Financial
Institution A ending in 3933, for which ALVI had signatory authority (“Personal
Account”).

h. Laboratory A purported to perform testing to detect for SARS-
CoV-2, and offered two types of COVID-19 testing: PCR tests and antigen tests that
delivered results within approximately 15 minutes (“rapid tests”). Laboratory A also
offered a service where individuals and companies could pay a fee to receive COVID-
19 PCR test results in an expedited fashion.

1. Laboratory A maintained an account at Financial Institution B

ending in 2616, for which ALVI had signatory authority (“Laboratory A Account”).
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j. Laboratory A enrolled in the HRSA Uninsured Program in or
around December 2020, and contracted with Biller A to submit claims, via interstate
wire transmissions, to the HRSA Uninsured Program on its behalf.

k. Consultant A was a consultant for Laboratory A who designed
software for Laboratory A that compiled billing-related information associated with
test specimens, interpreted PCR test results, and generated e-mails with test results
to individuals whose specimens purportedly had been tested. Once test results were
released to the individual, Laboratory A, through Biller A, submitted claims to HRSA
and other funding sources for the tests.

1. Most of the test specimens provided to Laboratory A for PCR
testing were delivered by test collectors who received remuneration from
Laboratory A for delivering large amounts of test specimens to Laboratory A. Some
individuals went directly to Laboratory A to provide their test specimens (“walk-in
customers”). Walk-in customers often sought PCR testing in combination with rapid
tests.

m. When HRSA approved a claim seeking reimbursement for
COVID-19 testing, funds from the HRSA Uninsured Program were electronically
transmitted to the Laboratory A Account.

n. Laboratory A obtained over $83 million from the HRSA
Uninsured Program as payment for COVID-19 tests purportedly performed by

Laboratory A.
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2. Beginning in or around February 2021, and continuing through in or
around February 2022, at Chicago, in the Northern District of Illinois, Eastern
Division, and elsewhere,

ZISHAN ALVI,
defendant herein, along with others, knowingly devised, intended to devise, and
participated in a scheme to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, which
scheme is further described below.

3. It was part of the scheme that ALVI caused Laboratory A to obtain funds
from the HRSA Uninsured Program by submitting, and causing to be submitted,
fraudulent claims to HRSA. The claims fraudulently sought reimbursement for
purported tests for COVID-19 when ALVI knew that (a) Laboratory A had not
performed a test for COVID-19; (b) Laboratory A had modified a test for COVID-19
such that the results were unreliable; and (c) Laboratory A already had collected
payment from the individuals who purportedly had been tested.

4, It was further part of the scheme that ALVI caused purported negative
test results to be released to individuals for whom a fee for expedited test results had
been paid to Laboratory A, when ALVI knew that a COVID-19 test had not been
performed on the specimens.

5. It was further part of the scheme that ALVI paid test collectors to deliver

test specimens gathered in the Chicago area and elsewhere to Laboratory A,
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including instances when the test collectors delivered tens of thousands of specimens
at a time to Laboratory A for processing, so that ALVI could obtain additional funds
from HRSA and other sources for purportedly performing COVID-19 tests. Most
specimens that Laboratory A received came from these test collectors whom
Laboratory A paid.

ALVI Caused Claims to be Submitted to HRSA
When No Testing Was Performed

6. It was further part of the scheme that ALVI knowingly caused
Laboratory A to submit claims to HRSA for reimbursement for COVID-19 tests
purportedly performed on test specimens that Laboratory A had received, when ALVI
knew that no test had been performed on the specimens.

7. It was further part of the scheme that ALVI directed Laboratory A
employees to falsely indicate in Laboratory A’s records that COVID-19 tests had been
performed, when ALVI knew that the test specimens had been discarded at ALVI’s
direction and had not been tested.

8. It was further part of the scheme that, in order to conceal the fact that
tests were not performed, ALVI instructed Laboratory A employees to release
purported negative COVID-19 test results to individuals, when ALVI knew that no
tests were performed.

9. It was further part of the scheme that, in order to conceal the fact that

tests were not performed, Laboratory A did not release positive COVID-19 results on
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specimens where tests were eventually performed, because a purported negative

result had already been released.

ALVI Caused the PCR Test Method to be Altered to Use Less Testing Materials,
Rendering the Test Results Unreliable

10. It was further part of the scheme that, to reduce costs and increase
Laboratory A’s profits, ALVI directed Laboratory A employees to alter Laboratory A’s
PCR testing method by using less of the materials necessary to process the PCR test,
including the reagents, knowing that this made the test results unreliable.

11. It was further part of the scheme that ALVI caused Laboratory A to
submit fraudulent claims for reimbursement to HRSA for purported COVID-19 tests
performed using this unreliable method.

12. It was further part of the scheme that, in order to conceal the unreliable
test results, ALVI caused Laboratory A to deliver purported negative test results to
individuals, when ALVI knew that the altered PCR test had yielded results that were
inconclusive and not reliable.

18. It was further part of the scheme that ALVI directed Laboratory A staff
to conceal from its laboratory directors the modifications to Laboratory A’s PCR
testing method, so that Laboratory A could continue to fraudulently claim

reimbursement from HRSA for performing the altered PCR tests.
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ALVI Caused Claims to be Submitted to HRSA Seeking Payment
For Testing Walk-In Customers Who Had Already Paid for Their Tests

14. It was further part of the scheme that ALVI instructed Laboratory A
staff to collect payment from walk-in customers for rapid tests and then bill HRSA
for those same tests. As a result, Laboratory A fraudulently sought reimbursement
from HRSA for rapid tests for which it already had been paid.

Proceeds from the Fraudulent COVID-19 Billing to HRSA

15. It was further part of the scheme that ALVI deposited, and caused to be
deposited, the fraudulently obtained funds from HRSA for COVID-19 tests that were
not provided as billed, into the Laboratory A Account.

16. It was further part of the scheme that ALVI transferred fraudulently
obtained HRSA funds from the Laboratory A Account to the Personal Account, and
used the funds in part to make personal expenditures, including for vehicle purchases
and investments in stocks and cryptocurrency.

17. It was further part of the scheme that ALVI misrepresented, concealed,
and hid, and caused to be misrepresented, concealed, and hidden, the existence,
purpose, and acts done in furtherance of the scheme.

18. Onor about July 9, 2021, at Chicago, in the Northern District of Illinois,
Eastern Division, and elsewhere,

ZISHAN ALVI,
defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate

8
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commerce certain writings, signs, and signals, namely, a claim for a rapid test for
Individual J.T. performed on June 17, 2021, for which Laboratory A already had
received reimbursement from Individual J.T., which claim was processed through
HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 1343.
Case: 1:23-cr-00142 Document #: 1 Filed: 03/09/23 Page 10 of 21 PagelD #:10

COUNT TWO
The SPECIAL JULY 2021 GRAND JURY further charges:
1. Paragraphs 1 through 17 of Count One are incorporated here.
2. On or about July 27, 2021, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,
ZISHAN ALVI,
defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual N.A. performed on July 25, 2021, that was not performed as billed
and for which the test result was released as negative to Individual N.A. when it was
in fact positive, which claim was processed through HRSA servers located outside of
Illinois;

In violation of Title 18, United States Code, Section 1343.

10
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COUNT THREE

The SPECIAL JULY 2021 GRAND JURY further charges:

1. Paragraphs 1 through 17 of Count One are incorporated here.

2. On or about August 19, 2021, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,

ZISHAN ALVI,

defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual C.R. performed on August 7, 2021, that was not performed as billed
and for which the test result was released to Individual C.R. as negative when it was
in fact positive, which claim was processed through HRSA servers located outside of

In violation of Title 18, United States Code, Section 1348.

11
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COUNT FOUR
The SPECIAL JULY 2021 GRAND JURY further charges:
1. Paragraphs 1 through 17 of Count One are incorporated here.
2. On or about August 25, 2021, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,
ZISHAN ALVI,
defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a rapid test for
Individual T.A. performed on August 13, 2021, for which Laboratory A already had
received reimbursement from Individual T.A., which claim was processed through
HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 1348.

12
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COUNT FIVE

The SPECIAL JULY 2021 GRAND JURY further charges:

1. Paragraphs 1 through 17 of Count One are incorporated here.

2. On or about September 3, 2021, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,

ZISHAN ALVI,

defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual L.M. performed on August 22, 2021, for which the test result was
released to Individual L.M. as negative when it was in fact inconclusive, which claim
was processed through HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 1343.

13
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COUNT SIX

The SPECIAL JULY 2021 GRAND JURY further charges:

1. Paragraphs 1 through 17 of Count One are incorporated here.

2. On or about September 24, 2021, at Chicago, in the Northern District of
Ithnois, Eastern Division, and elsewhere,

ZISHAN ALVI,

defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual J.F. performed on September 9, 2021, for which the test result was
released as negative to Individual J.F. when it was in fact inconclusive, which claim
was processed through HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 13438.

14
Case: 1:23-cr-00142 Document #: 1 Filed: 03/09/23 Page 15 of 21 PagelD #:15

COUNT SEVEN

The SPECIAL JULY 2021 GRAND JURY further charges:

1. Paragraphs 1 through 17 of Count One are incorporated here.

2. On or about December 24, 2021, at Chicago, in the Northern District of
Iilinois, Eastern Division, and elsewhere,

ZISHAN ALVI,

defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual D.C. performed on December 16, 2021, that was not performed as
billed, which claim was processed through HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 1348.

15
Case: 1:23-cr-00142 Document #: 1 Filed: 03/09/23 Page 16 of 21 PagelD #:16

COUNT EIGHT

The SPECIAL JULY 2021 GRAND JURY further charges:

1. Paragraphs 1 through 17 of Count One are incorporated here.

2. On or about December 27, 2021, at Chicago, in the Northern District of
Ilhnois, Eastern Division, and elsewhere,

ZISHAN ALVI,

defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual A.D. performed on December 20, 2021, for which the test result
was released as negative to Individual A.D. when it was in fact inconclusive, which
claim was processed through HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 13438.

16
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COUNT NINE
The SPECIAL JULY 2021 GRAND JURY further charges:
1. Paragraphs 1 through 17 of Count One are incorporated here.
2. On or about January 3, 2022, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,
ZISHAN ALVI,
defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual R.S. performed on December 23, 2021, that was not performed as
billed, which claim was processed through HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 1343.

17
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COUNT TEN
The SPECIAL JULY 2021 GRAND JURY further charges:
1. Paragraphs 1 through 17 of Count One are incorporated here.
2. On or about January 4, 2022, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,
ZISHAN ALVI,
defendant herein, for the purpose of executing the above-described scheme, did
knowingly cause to be transmitted by means of wire communication in interstate
commerce certain writings, signs, and signals, namely, a claim for a purported PCR
test for Individual K.S. performed on December 24, 2021, that was not performed as
billed, which claim was processed through HRSA servers located outside of Illinois;

In violation of Title 18, United States Code, Section 1843.

18
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COUNT ELEVEN

1. Paragraph 1 of Count One is incorporated here.

2. From in or around November 2021 through January 2022, Laboratory
A received an influx of specimens to be tested for COVID-19, in part due to a surge in
COVID-19 cases caused by a COVID-19 variant known as Omicron. Laboratory A
could not store or process the volume of specimens that it received during this time
period. To clear the backlog, ALVI instructed Laboratory A staff to dispose of
specimens that had not yet been tested.

3. In or around December 2021 and January 2022, ALVI caused
Laboratory A to seek reimbursement from HRSA for specimens that were never
tested because they had been thrown away at ALVI’s instruction. As a result, HRSA
paid for COVID-19 tests that Laboratory A never tested.

4. On or about January 24, 2022, at Chicago, in the Northern District of
Illinois, Eastern Division, and elsewhere,

ZISHAN ALVI,
defendant herein, did steal, purloin, and knowingly convert to his own use and the
use of Laboratory A money of the United States, namely, in excess of $1,000 in funds
administered by HRSA for COVID-19 tests, which funds Laboratory A was not
entitled to receive;

In violation of Title 18, United States Code, Section 641.

19
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FORFEITURE ALLEGATION

The SPECIAL JULY 2021 GRAND JURY alleges:

1. Upon conviction of an offense in violation of Title 18, United States Code,

Sections 641 and 1343, as set forth in this Indictment, defendant shall forfeit to the

United States of America any property which constitutes and is derived from proceeds

traceable to the offense, as provided in Title 18, United States Code, Section

981(a)(1)(C) and Title 28, United States Code, Section 2461(c).

2. The property to be forfeited includes, but is not limited to:

a. A personal monetary judgment in an amount equal to the

proceeds derived from the offenses in violation of Title 18, United States Code, Section

1343, estimated to be approximately $83,578,387.89.

b. The following specific property:

1.

ii.

lv.

A 2021 Mercedes-Benz GLB250W4 bearing VIN

A 2021 Land Rover Range Rover HSE bearing VIN
SALGS2RU1MA455040;

A 2021 Lamborghini Urus bearing VIN

A 2021 Bentley bearing VIN SJAAM2ZV4MC037190;
A 2022 Tesla X bearing VIN 7SAXCBE66NF331823;

Approximately $6,825,089 in ZISHAN ALVI’s personal bank
account ending in 3933 that was seized on or about February
23, 2022;

Approximately $810,000 in an E*Trade account ending in
5843;

20
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viii. Approximately $500,000 in a Fidelity Investments account
ending in 6785; and

ix. Approximately $245,814 in a Coinbase account associated
with Coinbase User ID 5a2db8a7f9650a00c3d0064e.

3. If any of the property described above, as a result of any act or omission
by the defendant: cannot be located upon the exercise of due diligence; has been
transferred or sold to, or deposited with, a third party; has been placed beyond the
jurisdiction of the Court; has been substantially diminished in value; or has been
commingled with other property which cannot be divided without difficulty, the
United States of America shall be entitled to forfeiture of substitute property, as

provided in Title 21, United States Code, Section 853(p).

A TRUE BILL:

FOREPERSON

UNITED STATES ATTORNEY

UNITED STATES DEPARTMENT OF JUSTICE
CRIMINAL DIVISION, FRAUD SECTION

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