Chinese National Found Guilty Of Selling Fraudulent Tests During COVID-19 Pandemic

A Chinese national has been convicted of selling nearly $4 million worth of fraudulent COVID-19 tests during the pandemic. The man has been identified as Jia Bei Zhu, 64.

According to the Department of Justice, a federal jury has found him guilty of selling the faulty tests out of his Fresno biolab, Universal Meditech Inc. (UMI), during the COVID-19 pandemic.

According to the DOJ, Zhu’s romantic partner, Zhaoyan Wang, was also his accomplice in the fraud scheme. The pair, along with others at the lab, “conspired with each other to import faulty COVID tests from China and then sell them to customers based” on false claims between August 2020 and March 2023.

Zhu was convicted on several counts, including one count of making a false statement to the FDA, one count of conspiracy to commit wire fraud and eight counts of wire fraud.

U.S. Attorney Eric Grant said, “This verdict holds the defendant accountable for actions that exploited a public health crisis for his own gain.” He added, “He flouted the lawful authority of the FDA and deliberately deceived the public by repackaging low-quality, foreign-made test kits at a time when accuracy and reliability were critical.”

It was revealed during the trial that the man hired workers who would not ask questions. He falsely claimed the tests were approved by the FDA. He also falsely stated that the tests were made in a certified lab in the U.S.

Some of Zhu’s employees testified that they were somewhat aware of what was going on. However, they said they were too afraid of losing their jobs to report the fraud scheme.

According to the DOJ, Wang was also charged in the case. However, she remains a fugitive in China after fleeing the U.S. before Zhu was arrested.

The man now faces up to 20 years in prison on the wire fraud and conspiracy charges. He could also face up to five years for the false statements charge and an additional three years for fraudulent tests.

Following the guilty verdict, FBI Sacramento Special Agent in Charge Sid Patel said, “Mr. Zhu saw a public health crisis and chose to profit from it by misrepresenting the origin, quality, and FDA approval status of his tests with the intent to flood the market with misbranded medical devices.”

According to the DOJ, the scheme first came to light in 2022 when one of the victims filed a civil lawsuit against his lab. Following a subsequent investigation, authorities found that the facility had “hundreds of boxes of COVID tests from China.” The condition of the lab was also described as unsanitary, with no proper medical equipment to manufacture the tests. To avoid the lawsuit, Zhu changed his identity, renamed his lab and moved it 20 miles south of Fresno.

In December 2022, authorities discovered his new illegal biolab in Reedley. He was arrested in October 2023.

Zhu is scheduled to be sentenced on Aug. 24.