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A federal jury has convicted Jia Bei Zhu following a two-week trial focused on the sale of fraudulent COVID-19 test kits through his Fresno-based company, Universal Meditech Inc.

According to the U.S. Attorney’s Office, jurors found Zhu guilty on one count of conspiracy to commit wire fraud, eight counts of wire fraud, two counts related to distributing adulterated and misbranded medical devices and one count of making false statements to the FDA.

Prosecutors alleged that from August 2020 through March 2023, Zhu and others imported faulty COVID-19 tests from China and falsely marketed them as FDA-authorized, made in the United States and connected to a certified medical laboratory. Prosecutors say the company generated just under $4 million in sales, distributing over 1 million tests nationwide.

Former employers testified during the trial, sharing with jurors that Zhu directed them to make false claims to customers. Several employees stated they feared losing their jobs or being physically harmed if they refused.

Customers who purchased tests also testified, with some noting that kits lacked basic components and failed to detect COVID-19.

 

In 2022, one of UMI’s customers filed a civil lawsuit that led to the criminal case. A court-ordered inspection of the company’s Fresno warehouse found what prosecutors described as unsanitary conditions, finding improperly stored pathogens and toxins, a vivarium not separated from the rest of the facility and large amounts of imported COVID-19 tests from China.

Following the inspection, prosecutors say Zhu attempted to move the operation to Reedley under a new name — Prestige Biotech Inc. Federal investigators later alleged Zhu lied to FDA and CDC officials during a 2023 interview by identifying himself under an alias and denying knowledge of the companies’ backgrounds.

In addition to Zhu, Zhaoyan Wang, Zhu’s romantic partner, also faces charges in the case, but fled to China before Zhu’s arrest. Prosecutors say she remains a fugitive.

Federal officials emphasized, following the verdict, that the Reedley biolab investigation did not uncover a public health threat tied to the stored materials. The FDA, CDC and FBI each determined the vivarium and improperly stored pathogens were linked to a failed effort to manufacture COVID-19 tests and did not pose a risk to humans.

The Reedley facility drew national attention in 2023 following a code enforcement investigation that discovered medical waste, laboratory materials and thousands of mice — both alive and deceased — inside the building. The discovery prompted investigations from federal and state agencies, leading to the eventual shutdown of the operation.

Zhu is scheduled to be sentenced Aug. 24 before U.S. District Judge Dale A. Drozd. The conspiracy and wire fraud convictions each carry potential maximum penalties of up to 20 years in prison, while the medical device-related convictions carry maximum penalties of up to three years each and the false statement conviction carries a maximum penalty of up to five years. Any final sentence will be determined by the court under federal sentencing guidelines.