Rajesh “Raj” Patel, 52, of Schaumburg, Illinois, has been charged in a federal indictment alleging that he billed the U.S. government for hundreds of thousands of COVID-19 tests that were never performed. The indictment was returned by a federal grand jury in the Northern District of Illinois.
According to the U.S. Department of Justice (DOJ), Patel allegedly used a clinical laboratory in Hillside, Illinois, to submit approximately $66.2 million in fraudulent claims to a federally funded program for uninsured patients. The Health Resources and Services Administration (HRSA) paid the laboratory approximately $44.1 million, while Patel allegedly personally obtained about $28 million in proceeds.
Key details of the alleged COVID-19 testing fraud
| Case detail | Information |
|---|---|
| Defendant | Rajesh “Raj” Patel, 52 |
| Residence | Schaumburg, Illinois |
| Alleged scheme | Billing for COVID-19 tests that were never performed |
| Tests involved | At least 380,000 PCR tests |
| Total claims submitted | Approximately $66.2 million |
| Payments received by laboratory | Approximately $44.1 million |
| Alleged personal proceeds | Approximately $28 million |
| Federal charges | Five counts of wire fraud |
| Maximum potential penalty | Up to 20 years in prison per count, 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 (HHS-OIG). Trial Attorney Claire Sobczak Pacelli of the DOJ’s Fraud Division Health Care Fraud Section is prosecuting the case.
How the alleged scheme operated
According to court documents cited by the DOJ, Patel was the co-owner and chief operating officer of a clinical laboratory in Hillside that processed polymerase chain reaction (PCR) tests during the COVID-19 pandemic.
Around March 2021, the laboratory entered into an agreement with Meridian Medical Staffing Inc. Under the agreement, the laboratory paid Meridian tens of millions of dollars to collect test specimens and provide the laboratory with specimens and biological information associated with purported patients.
Prosecutors allege that many of these patients either did not exist or had never provided specimens to Meridian.
Between May 2021 and April 2022, Patel allegedly created fake negative results for at least 380,000 PCR tests. The laboratory did not perform the tests, according to the indictment.
The alleged false results enabled the laboratory to submit claims to the HRSA Uninsured Program, which covered COVID-19 testing costs for eligible individuals without health insurance.
Federal program paid $44.1 million in alleged fraudulent claims
The HRSA Uninsured Program was established to help uninsured individuals access COVID-19 testing during the public health emergency. According to the DOJ, Patel’s laboratory submitted approximately $66.2 million in fraudulent claims to the program and received approximately $44.1 million in payments.
Prosecutors allege that Patel personally obtained approximately $28 million from the scheme.
The case concerns the alleged misuse of federal healthcare funding intended to help people access testing during the pandemic. The indictment does not establish guilt, and the allegations must be proven in court.
DOJ, FBI and HHS-OIG respond to the charges
Assistant Attorney General Colin M. McDonald of the DOJ’s Fraud Division said the defendant allegedly fabricated hundreds of thousands of COVID-19 tests and billed taxpayers for them. He said the division would continue investigating and prosecuting fraud involving federal healthcare programs.
Ryan Whalen, special agent in charge of the FBI Chicago Field Office, said combating financial fraud and holding accountable those who unlawfully obtain federal assistance remained a priority for the FBI.
Thomas Ethridge, special agent in charge of HHS-OIG, said the alleged scheme exploited a federally funded program created to provide testing services to uninsured individuals during a national emergency. HHS-OIG said it would continue working with law enforcement partners to address fraud and abuse involving government healthcare programs.
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The FBI Chicago Field Office and HHS-OIG investigated the case. Claire Sobczak Pacelli is prosecuting it for the DOJ’s Fraud Division.
Five wire fraud counts carry potential prison sentence
Patel has been charged with five counts of wire fraud. If convicted, he faces a maximum sentence of 20 years in prison for each count. Any sentence would be determined by the court.
The DOJ also noted the wider work of its Health Care Fraud Strike Force Program, which comprises nine strike forces operating in federal districts across the country. Since 2007, the program has charged more than 6,200 defendants who collectively billed federal healthcare programs and private insurers more than $45 billion.
The department said its fraud enforcement work includes efforts to hold healthcare providers accountable for schemes involving federal program funds.
Legal notice: An indictment is an allegation, not proof of guilt. Rajesh Patel is presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
To read the original order please visit DOJ (Department of Justice) website