Illinois Man Indicted for $66M COVID-19 Testing Fraud

A federal grand jury in the Northern District of Illinois has indicted Rajesh 'Raj' Patel, 52, of Schaumburg, Illinois, on charges related to a $66. 2 million COVID-19 testing fraud scheme. According to the U.

S. Attorney's Office, Patel allegedly billed for hundreds of thousands of COVID-19 tests that were never performed.

Patel, who served as the co-owner and Chief Operating Officer of a clinical laboratory in Hillside, Illinois, is accused of creating fake 'negative' test results for at least 380,000 polymerase chain reaction (PCR) tests between May 2021 and April 2022. These tests were purportedly processed by his laboratory during the COVID-19 pandemic.

Alleged Fraudulent Scheme

The indictment alleges that Patel's laboratory entered into an agreement with Meridian Medical Staffing Inc. in March 2021. Under this agreement, the laboratory paid Meridian tens of millions of dollars for collecting test specimens and providing the laboratory with the specimens and biological information of purported patients. However, many of these patients either never existed or never provided test specimens to Meridian.

Patel allegedly used these fake test results to fraudulently bill the U. S. Health Resources and Services Administration (HRSA) Uninsured Program, a federally funded program designed to cover the costs of COVID-19 tests for uninsured individuals.

The laboratory submitted approximately $66. 2 million in fraudulent claims to HRSA, resulting in payments of approximately $44. 1 million.

Patel personally obtained approximately $28 million from the scheme.

Legal Proceedings and Potential Penalties

Patel faces five counts of wire fraud, with each count carrying a maximum penalty of 20 years in prison if convicted. The case is being prosecuted by Trial Attorney Claire Sobczak Pacelli of the Fraud Division’s Health Care Fraud Section.

Assistant Attorney General Colin M. McDonald of the Justice Department’s Fraud Division emphasized the severity of the alleged crimes, stating, "This defendant allegedly exploited a global crisis for personal gain, fabricating hundreds of thousands of COVID-19 tests – then billing the taxpayer for it."

Special Agent in Charge Ryan Whalen of the FBI Chicago Field Office and Special Agent in Charge Thomas Ethridge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) also highlighted the importance of holding accountable those who unlawfully obtain federal assistance for personal profit.

The FBI Chicago Field Office and HHS-OIG conducted the investigation. The indictment underscores the ongoing efforts by federal agencies to combat fraud, particularly in programs designed to assist vulnerable populations during the pandemic.

The charges against Patel are allegations, and he is presumed innocent unless and until proven guilty in a court of law.