Inverness man indicted for COVID-19 testing fraud scheme - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Regulation News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Regulation News RSS Get our newsletter
Order Prints
March 15, 2023 Regulation News
Share
Share
Post
Email

Inverness man indicted for COVID-19 testing fraud scheme

Chicago Tribune (IL)

A suburban man has been indicted by a federal grand jury on 10 counts of wire fraud and one count of theft of government funds for his involvement in a COVID-19 testing fraud scheme that netted his Chicago-based laboratory over $83 million from a federal pandemic relief program.

The money was allegedly obtained by submitting fraudulent claims for reimbursement on tests that were never performed, that were performed incorrectly or that were paid for by clients.

Zishan Alvi, 44, of Inverness, was arrested last week for his alleged involvement in the scheme. He pleaded not guilty to the indictment at his initial appearance on Friday, court records show. Alvi appeared for a detention hearing Monday at the Dirksen U.S. Courthouse, where he was ordered released on a $2 million bond secured by property, according to court records.

Alvi co-owned and operated Laboratory A in Chicago, which purportedly performed two types of tests to detect COVID-19: PCR tests and "rapid" antigen tests that delivered results within approximately 15 minutes. Individuals and companies could also pay a fee for expedited PCR test results in Laboratory A.

According to the indictment, which was made public Monday, in or around December 2020, Laboratory A enrolled in the Health Resources and Services Administration's Uninsured Program. The agency's program used funds appropriated through federal legislation in order to cover the costs of COVID-19 tests for people without health insurance coverage.

Between February 2021 and February 2022, Alvi and others allegedly participated in a scheme by which Laboratory A submitted fraudulent claims seeking reimbursement for COVID-19 tests with the knowledge that: the laboratory had not performed a test; that the laboratory had modified a test, thus making the results unreliable; or that the laboratory had already been paid by clients who had purportedly been tested.

According to the indictment, Alvi directed Laboratory A employees to falsely report that COVID-19 tests had been performed on clients despite knowing that the test specimens had been thrown out, without being tested, at his direction. The laboratory would give negative test results to individuals who had provided specimens for testing. Laboratory A also did not release positive COVID-19 results on specimens where tests were eventually performed, since a negative result had already been released, according to the indictment.

The indictment also indicated that Alvi directed employees to alter the laboratory's testing methods by using less of the materials needed to process PCR tests -- including the reagents -- in order to reduce costs and increase profits, despite knowing that would make test results unreliable.

Alvi allegedly transferred part of the $83 million which Laboratory A obtained from HRSA -- from the laboratory's accounts to a personal account. He then allegedly used the money for personal expenditures, including vehicle purchases and investments in stocks and cryptocurrency. According to a news release Monday, the indictment seeks forfeiture from the defendant of over $6.8 million in alleged ill-gotten gains, in addition to five luxury vehicles and funds from other trade and investment accounts.

Each count of wire fraud Alvi faces is punishable by a maximum of 20 years in federal prison, and the count of theft of government funds is punishable by up to 10 years in federal prison.

"The charges in this case allege that the defendant disregarded public health concerns in favor of personal financial gain," said Morris Pasqual, acting U.S. attorney for the Northern District of Illinois, in a news release. "Doing so by compromising taxpayer-funded programs intended to fight the spread of coronavirus was particularly reprehensible."

Chicago Tribune's Jason Meisner contributed.

adperez@chicagotribune.com

(C)2023 Chicago Tribune. Visit chicagotribune.com. Distributed by Tribune Content Agency, LLC.

Older

Sarah Cavanaugh, at the center of RI 'stolen valor' fraud case, will be sentenced Tuesday

Newer

Fed challenge intensifies as inflation ticks higher, SVB concern lingers

Advisor News

  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
  • Americans’ sense of overall prosperity still ticks upward
  • Turning expanded eligibility into a better coverage plan for federal clients
  • Election 2026: Which of Berkeley's 7 ballot measures will pass?
  • How advisors can help frugal retirees finally enjoy their savings
More Advisor News

Annuity News

  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
  • Jackson reports record annuity sales, increases share repurchase authorization
  • Why the market doesn’t need more carriers
  • Equitable, Corebridge steam toward merger with strong Q3 annuity sales
  • Jackson Announces New Annuity Offering for AARP Members
More Annuity News

Health/Employee Benefits News

  • Enrollment open for health insurance marketplace
  • Palatine Proposes Flat Levy, 8.5% Water Rate Hike In 2027 Budget
  • CVS Health will split into two new companies. What does it mean for Hartford-based insurer Aetna?
  • An Application for the Trademark “ALMERA” Has Been Filed by Health Care Service Corporation: Health Care Service Corporation
  • Reports Outline Managed Care Study Findings from Ohio State University (Factors Associated With Pretreatment Patient Attrition in an Advanced Orthodontic Education Clinic: A Cross-Sectional Study): Managed Care
More Health/Employee Benefits News

Life Insurance News

  • Brighthouse Financial Announces Third Quarter 2026 Results
  • Prudential earnings dip as Japan sales suspension offsets U.S. growth
  • U-Haul Holding Company Reports Second Quarter Fiscal 2027 Financial Results
  • Genworth Financial Announces Third Quarter 2026 Results
  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.