Reedley biolab operator convicted in scheme to sell millions of faulty COVID tests

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A man who operated a biolab in Reedley was convicted Tuesday of fraudulently selling $3.8 million worth of COVID-19 tests that he obtained from China and passed off to customers as being American-made.Following a two-week federal trial in Fresno, a jury found 64-year-old Jia Bei Zhu guilty of conspiracy to commit wire fraud, eight counts of wire fraud and a count of making false statements to the FDA about his identity.

Beginning in August 2020 through March 2023, Zhu, his romantic partner Zhaoyan Wang and others at their company, Universal Meditech Inc., imported faulty COVID tests from China and sold them, representing to customers that the tests were made in the U.S., authorized by the FDA and were effective in detecting the virus, according to prosecutors.But customers testified during the trial that the tests they purchased were missing pieces and did not work, according to prosecutors and court records.

Employees testified that they were told to repackage the tests into boxes labeled “Made in the USA” and, while they knew it was wrong, did so out of fear of losing their jobs, according to prosecutors.U.S.Atty.

Eric Grant said in a statement that Zhu, a Chinese national, “exploited a public health crisis for his own gain.” “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,” Grant said.“This conduct, tied to the unlawful operations uncovered at the Reedley laboratory, put lives at risk.”Zhu’s attorney, Anthony Capozzi, did not immediately return an email seeking comment on Thursday.

Zhu’s partner, Wang, is charged with conspiracy to commit wire fraud, wire fraud and distribution of adulterated and misbranded medical devices in connection with the case.Authorities allege she fled to China with the couple’s young son s...