Chinese national found guilty after orchestrating fraud scheme, distributing over 1M non-compliant COVID-19 test kits

OAN Staff Lillian Mann and Brooke Mallory
7:34 PM – Wednesday, May 6, 2026

Following a two-week federal trial, a Chinese national was convicted for orchestrating a multimillion-dollar fraud scheme that distributed over one million non-compliant COVID-19 test kits throughout the United States during the peak of the pandemic.

Federal prosecutors demonstrated that the defendant bypassed critical safety regulations by importing and selling these faulty diagnostic tools, which failed to meet the rigorous standards required for public health emergency use.

This deceptive operation not only generated illicit profits but also posed a significant risk to public safety by providing unreliable results to consumers at a time of extreme national vulnerability.

The Chinese man was identified as Jia Bei Zhu, 64. He raked in nearly $4 million from selling non-compliant COVID-19 tests out of an underground biolab in Reedley, California, according to a statement released from the U.S. Attorney’s Office on Wednesday.

Zhu faced a 12-count indictment that included charges of conspiracy, wire fraud, the distribution of misbranded medical devices and providing false statements to the Food and Drug Administration (FDA).

Federal authorities say that Zhu’s company, Universal Meditech (UMI), systematically deceived consumers and regulators by marketing COVID-19 test kits with entirely fabricated credentials.

According to prosecutors, the company falsely claimed its products were “FDA-approved,” manufactured within the United States, and produced in certified laboratory environments — when in reality, the tests failed to meet these regulatory standards and the origins of the hardware were misrepresented.

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

Evidence presented during the trial revealed that Universal Meditech Inc. (UMI) lacked the necessary infrastructure, equipment, and technical capacity to manufacture COVID-19 diagnostic tests.

Instead of producing the kits domestically as claimed, Zhu imported inexpensive, substandard tests from China and repackaged them with fraudulent “FDA-approved” labeling. Those who testified in court also described the products as fundamentally defective, noting that the kits were often missing essential components and proved entirely incapable of detecting the virus.

Federal prosecutors highlighted a staggering lack of professional oversight within the facility, adding that many staff members lacked any formal medical or scientific training at the time of their recruitment.

Additionally, former employees provided testimony regarding the “internal culture” of the laboratory, admitting they were aware of the illicit nature of the operation. These witnesses explained that they continued to follow Zhu’s directives only out of a profound “fear of professional retaliation” and even the threat of physical violence from Zhu himself.

In December 2022, a routine code violation investigation at a makeshift laboratory in Reedley, California, led officials to a disturbing discovery that ultimately exposed the scale of Zhu’s illicit operations.

Investigators uncovered thousands of vials containing hazardous biological materials, including pathogens such as HIV, malaria, and COVID-19, many of which were stored in flagrant violation of safety protocols. In a chilling display of negligence, some of these infectious agents were reportedly kept in repurposed household containers, such as old iced tea and cranberry juice jugs, rather than specialized biohazard vessels.

Following his arrest in 2023, the fallout from the Reedley discovery highlighted gaps in national biosecurity, prompting a major legislative response. By 2025, lawmakers introduced a new federal bill specifically designed to tighten oversight of private laboratories and strengthen regulations regarding the handling of high-contaminant materials.

“This conduct, tied to the unlawful operations uncovered at the Reedley laboratory, put lives at risk. Our office remains committed to prosecuting those who endanger the public through fraud, especially in matters affecting the health and safety of our communities,” the statement continued.

Zhaoyan Wang, identified by prosecutors as Zhu’s romantic and business partner, was also charged for her involvement in the scheme. However, she fled the United States prior to her arrest and is currently considered a fugitive believed to be residing in China.

As federal investigators closed in, the pair reportedly attempted to evade detection by rebranding their enterprise under a new corporate identity and seeking a fresh location for their illicit operations. Throughout the investigation, Zhu attempted to deceive authorities by adopting the alias “Qiang ‘David’ He,” claiming to be a recent arrival to the country with no prior knowledge of Universal Meditech Inc.

Zhu will be scheduled for sentencing in August and he faces the possibility of serving decades in federal prison — should the court impose the maximum statutory penalties.

“The FBI is committed to safeguarding the integrity of the medical supply chain that Americans depend on,” said said FBI Sacramento Special Agent in Charge Sid Patel.

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