Illinois Laboratory Owner Indicted in Alleged $66 Million COVID-19 Testing Fraud Scheme
A federal grand jury in the Northern District of Illinois has indicted Rajesh "Raj" Patel, 52, of Schaumburg, Illinois, for his alleged involvement in a $66.2 million scheme to fraudulently bill the federal government for COVID-19 tests that were never performed, the U.S. Department of Justice announced.
According to court documents, Patel was the co-owner and chief operating officer of a clinical laboratory based in Hillside, Illinois, which processed polymerase chain reaction (PCR) tests during the COVID-19 pandemic. Around March 2021, Patel's laboratory entered into an agreement with Meridian Medical Staffing Inc., paying the company tens of millions of dollars to collect and provide test specimens alongside biological information for purported patients. Prosecutors allege that many of these individuals either never existed or never submitted specimens.
Between May 2021 and April 2022, Patel allegedly generated fabricated "negative" results for at least 380,000 PCR tests without actually performing the laboratory analyses. These falsified results were allegedly created to submit claims to the Health Resources and Services Administration (HRSA) Uninsured Program, a federal initiative designed to cover COVID-19 testing costs for uninsured individuals.
Federal authorities state that Patel’s laboratory submitted approximately $66.2 million in fraudulent claims to HRSA, resulting in approximately $44.1 million in payouts. Patel is alleged to have personally obtained around $28 million from the operation.
Patel has been charged with five counts of wire fraud. Each count carries a maximum statutory penalty of 20 years in prison if convicted.
The case was investigated by the FBI Chicago Field Office and the U.S. Department of Health and Human Services Office of Inspector General, with prosecution led by the Justice Department’s Fraud Division.
An indictment contains only allegations, and the defendant is presumed innocent until proven guilty in a court of law.
US Department of Justice
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