Texas Businessman Admits $1.9 Million COVID Test Kit Fraud
Summary
A press release of the U.S. Attorney's Office for the Eastern District of Missouri dated Thursday, November 20, 2025. It announces that Rashid Naqvi, 52, of the Houston area, pleaded guilty to one count of wire fraud over Medicare claims for COVID-19 test kits. According to the release, companies he owned obtained $1,974,479 from roughly March 2023 to at least October of 2023 through two laboratories, Elite Diagnostics Inc. and Astro Diagnostics Inc. The release states that he admitted obtaining patients' Medicare numbers by paying $488,435 in kickbacks to co-conspirators. It adds that his labs billed Medicare 22,898 times for kits sent to patients who had not requested them.
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Full text
Press Release Texas Businessman Admits $1.9 Million COVID Test Kit Fraud Thursday, November 20, 2025 For Immediate Release U.S. Attorney's Office, Eastern District of Missouri ST. LOUIS – A Texas businessman on Thursday admitted fraudulently obtaining $1.9 million from Medicare for COVID-19 test kits. Companies owned by Rashid Naqvi, 52, of the Houston area, obtained $1,974,479 through the scheme, which lasted from roughly March 2023 to at least October of 2023. As part of his guilty plea in U.S. District Court in St. Louis to one count of wire fraud, Naqvi admitted fraudulently submitting thousands of claims to Medicare for the kits. Naqvi operated two laboratories that he used to submit claims to Medicare: Elite Diagnostics Inc. in the Eastern District of Missouri and Astro Diagnostics Inc. in Texas. Naqvi obtained patients’ Medicare numbers and identifiers without their knowledge or consent by paying $488,435 in kickbacks to co-conspirators. He used that information to submit claims to Medicare for test kits that were then sent to patients who had not requested them. Naqvi’s labs billed Medicare a total of 22,898 times for the kits during the scheme. Neither Naqvi nor his labs had any direct contact or relationship with the Medicare patients who were the subject of the claims. Some of the reimbursement claims were for patients who had died before receiving the kits. Naqvi continued his scheme even after patients called to say that they had not requested the test kits. During subsequent audits by Medicare investigators, Naqvi tried to conceal his scheme by producing false records to investigators, including documents which falsely represented that the Medicare patients authorized the kits. He also hid the kickbacks from investigators. Naqvi is scheduled to be sentenced on April 7, 2026. Wire fraud is punishable by up to 20 years in prison, a fine of up to $250,000 or both prison and a fine. The FBI and the U.S. Department of Health and Human Services Office of Inspector General investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case. Contact Robert Patrick, Public Affairs Officer, robert.patrick@usdoj.gov. Updated November 20, 2025 Topics Coronavirus Financial Fraud Components Federal Bureau of Investigation (FBI) USAO - Missouri, Eastern Related Content Press Release Postal Employee Sentenced for Her Role in Conspiracy to Steal Checks from the Mail Cambria Hopkins sold her “arrow key,” which allows access to U.S. Postal Service collection boxes, and stole checks from the mail. January 30, 2026 Press Release Former Official Admits Embezzling from St. Louis Circus George S. Pace pleaded guilty to four counts of wire fraud. January 28, 2026 Press Release Slovakian Man Admits Aiding Darknet Market that Sold Drugs and Stolen Personal Information Alan Bill pleaded guilty to one count of conspiracy to distribute controlled substances and admitted involvement in the operation of Kingdom Market. January 27, 2026
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