On September 30, 2024, the Department of Justice announced that Zishan Alvi, a 45-year-old Illinois resident, pleaded guilty to one count of wire fraud in connection with a COVID-19 testing case.
According to court documents, Alvi owned and operated a laboratory in Chicago that provided COVID-19 testing during the pandemic. The government alleged that claims were submitted to the Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for tests that were either not performed or inconclusive.
According to the DOJ, from February 2021 through February 2022, Alvi’s laboratory released negative COVID-19 test results to patients even though the lab either did not perform the tests or the results were inconclusive. The laboratory is alleged to have submitted claims for reimbursement to HRSA, resulting in over $14 million in payments.
Alvi pleaded guilty to wire fraud and is scheduled to be sentenced on February 7, 2025. He faces a potential sentence of up to 20 years in prison. A federal district court judge will determine the final sentence.
The Fraud Section of the Department of Justice’s Criminal Division leads the Health Care Fraud Strike Force Program which focuses on investigating and prosecuting health care fraud. Since 2007, this program has charged more than 5,400 defendants across the country, involving claims of fraud in excess of $27 billion related to federal health care programs and private insurers.
Many businesses and health care providers rapidly expanded or shifted operations during the COVID-19 pandemic. With the speed of these type of changes, errors in billing or documentation can occur. If your business provided pandemic-related services, such as COVID-19 testing, treatment, or vaccine administration, you may face scrutiny regarding claims submitted for government reimbursement programs. Even honest mistakes in compliance with programs like HRSA or other pandemic relief programs can lead to investigations or enforcement actions.
If you or your business offered pandemic-related services and have concerns about billing, compliance, or government scrutiny, seeking experienced legal counsel is crucial. The attorneys at Chilivis Grubman have extensive experience advising clients on health care compliance, defending against fraud investigations, and handling cases involving pandemic-related services. If you need assistance, feel free to contact us today.