A Chicago-based COVID-19 testing facility founder was charged with fabricating more than $83 million in fraudulent federal health claims for coronavirus tests.
The indictment also alleges that Alvi transferred more than $83 million in fraudulently obtained federal funds to a bank account for personal expenses, including the purchase of luxury vehicles and investments in stocks and cryptocurrencies.
Chicago Man Accused of Using Government Funds for Personal Gain
Many states filed complaints against the Center for COVID-19 Control, an Illinois-based countrywide coronavirus testing chain, alleging that the owners diverted millions of cash collected from the federal government and insurance companies for testing themselves.
The FBI conducted a raid on the company’s headquarters early last year. Around in December 2020, Lab Elite registered in the Health Resources and Services Administration Uninsured Program, a government entity that handled funds to pay the cost of COVID-19 testing for uninsured individuals.
According to the indictment, between 2021 and 2022, Alvi conspired with others to file fake health claims to refund erroneous and unreliable test results to the public.
Alvi allegedly instructed Lab Elite staff to declare negative test results for COVID-19 tests that had either never been performed or had been erased.
In an effort to decrease expenses and improve the lab’s profits, Alvi, according to the indictment, instructed employees to run tests with insufficient materials, knowing that this would produce incorrect findings.
Among the things the government seized from Alvi’s operation:
- A 2021 Mercedes-Benz GLB250W4.
- A 2021 Land Rover Range Rover HSE.
- A 2021 Lamborghini Urus.
- A 2021 Bentley.
- A 2022 Tesla X.
- $6,825,089 in Alvi’s personal bank account.
- About $810,000 in an E*Trade account.
- About $500,000 in a Fidelity Investments account.
- $245,814 in a Coinbase account.
According to a news release from the Justice Department, each count of wire fraud carries a maximum sentence of 20 years in federal prison. Alvi also faces up to 10 years in federal prison for the offense of theft of government funds.
In addition to his five high-end automobiles, the indictment demands forfeiture of at least $6.8 million from Alvi as well as money from other trading and investing accounts.
The FBI looks into the chain of COVID-19 testing sites: Despite an FBI inquiry, the Center for COVID-19 Control shutters its headquarters and says testing facilities may separate.
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Center for COVID-19 Control Evaluates Lab Elite
People in the Chicago region started to inquire about other labs when the FBI looked into the Center for COVID-19 Control.
In January 2022, health officials warned the public to stay away from roving COVID-19 testing locations. When Lab Elite hired pop-up tents in Philadelphia, they came under regional and national attention.
Two individuals complained about the lab at the time, claiming they never received test results despite the lab receiving more than $80 million in reimbursement from the federal government.
Alvi and Nikola Nozinic established Lab Elite in Chicago before the end of 2020. In Evanston, Illinois, the two had a pizzeria and a pub, both of which were shut down in late 2020.
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