Illinois Lab Owner Charged in Alleged $66 Million Fake COVID Test Scheme

A federal grand jury in Chicago has indicted the co-owner of a suburban Illinois laboratory on charges that he billed the government for hundreds of thousands of COVID-19 tests that were never performed, the Justice Department announced Tuesday.

Rajesh "Raj" Patel, 52, of Schaumburg, Illinois, is charged with five counts of wire fraud in connection with an alleged $66.2 million scheme, according to the department. The indictment was returned Monday in the Northern District of Illinois.

What Prosecutors Allege

According to court documents cited by the Justice Department, Patel was co-owner and chief operating officer of a clinical laboratory in Hillside, Illinois, that processed PCR tests during the pandemic.

Around March 2021, the lab entered into an agreement with Meridian Medical Staffing Inc., which collected test specimens and patient information, the department said. The lab paid Meridian tens of millions of dollars. "In reality, many of these patients never existed or never provided test specimens to Meridian," the release says.

Between May 2021 and April 2022, Patel allegedly created fake "negative" results for at least 380,000 PCR tests on Meridian specimens that the lab never actually ran, according to the department. Prosecutors say the fake results were used to bill the Health Resources and Services Administration's Uninsured Program, a federally funded program that paid for COVID-19 testing for people without health insurance.

The Money

The lab submitted about $66.2 million in fraudulent claims and was paid about $44.1 million, the Justice Department said. Patel personally obtained about $28 million from the alleged scheme, according to the release.

If convicted, Patel faces up to 20 years in prison on each count. An indictment is an allegation, and Patel is presumed innocent unless proven guilty in court.

"This defendant allegedly exploited a global crisis for personal gain, fabricating hundreds of thousands of COVID-19 tests – then billing the taxpayer for it," said Assistant Attorney General Colin M. McDonald, who leads the department's National Fraud Enforcement Division.

FBI Chicago Special Agent in Charge Ryan Whalen said pandemic programs "were designed to provide a lifeline to vulnerable members of society," and that those entrusted with federal health care dollars "have a responsibility to bill honestly and accurately."

Part of a Wider Fraud Push

The FBI's Chicago Field Office and the Department of Health and Human Services Office of Inspector General investigated the case. It is being prosecuted by the Fraud Division's Health Care Fraud Section.

The Justice Department created the Fraud Division on April 7. The department says its work supports President Donald Trump's Task Force to Eliminate Fraud, which is chaired by Vice President JD Vance.

Hold Everyone Accountable.

Sources: U.S. Department of Justice, "Illinois Laboratory Owner Charged in $66M COVID-19 Testing Fraud Scheme" (Oct. 20, 2026): https://www.justice.gov/opa/pr/illinois-laboratory-owner-charged-66m-covid-19-testing-fraud-scheme