California Biolab Operator Convicted In $4 Million Faulty COVID Test Fraud
A federal jury in Sacramento convicted Jia Bei Zhu on all 12 counts on May 6, 2026, for selling more than one million faulty COVID-19 test kits that brought in nearly $4 million. (foxnews.com)
Jurors returned the verdict after a two-week trial, prosecutors said. Prosecutors say Zhu used his Fresno company Universal Meditech Inc. to sell tests falsely advertised as FDA-approved, made in the USA and produced in certified labs, though they were cheaply imported from China. Employees without medical backgrounds testified they were told to lie to customers and feared retaliation if they refused.
The episode traces back to 2016, when Zhu fled Canada after a court found him guilty of stealing U.S. cattle-genetics intellectual property and a judge entered a $330 million judgment. He entered the United States under the alias David He and later set up firms, including Universal Meditech, that imported medical supplies and tried to profit from pandemic demand.
In December 2022 a Reedley code enforcement officer, Jesalyn Harper, noticed an unauthorized garden hose at a warehouse and helped uncover a clandestine biolab that held pathogens, transgenic mice and misbranded tests. That discovery prompted federal probes and an October 2023 arrest. Federal agencies later said biological materials tied to the failed test venture were not an active biohazard, but investigators flagged unsanitary, substandard conditions.
The conviction of Jia Bei Zhu has reignited discussions around the rise in healthcare fraud during the COVID-19 pandemic. David Studdert, a professor at Stanford University, notes that scammers exploited relaxed federal regulations and public urgency to perpetrate fraud, a trend that Zhu's case exemplifies. This case further highlights vulnerabilities in U.S. biosecurity, as Sam Howell from the Center for a New American Security points out that insufficient oversight of biological research facilities has allowed unauthorized labs like Zhu's to operate without detection.
Social media reactions reflect a community relieved by the verdict, with local outlets like @ABC30 and @KMJNOW emphasizing the significance of the jury's decision. Users express satisfaction with the outcome, as seen in the succinct approval from @2024CKCSWHFFAN. This sentiment underscores a broader public desire for accountability in the wake of pandemic-related fraud and the need for stricter regulations to prevent similar incidents in the future.
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📌 Key Facts
- A federal jury in Sacramento convicted Jia Bei Zhu on all 12 counts after a two-week trial reported May 6, 2026.
- Prosecutors said Zhu used Universal Meditech Inc. in Fresno to sell more than one million faulty COVID-19 test kits, taking in nearly $4 million.
- The tests were falsely advertised as FDA-approved, made in the USA and produced in certified labs, though they were imported cheaply from China.
- Employees without medical backgrounds testified they were told to lie to customers about the tests and feared retaliation if they refused.
- Federal agencies determined biological materials at Zhu-linked Reedley and Fresno sites were tied to a failed COVID test venture, not an active biohazard, but highlighted unsanitary, substandard conditions.
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