On May 6, the U.S. Department of Justice announced that Chinese mastermind Jia Bei Zhu, who operated illegal biological laboratories in the United States, has been found guilty on all 12 charges for fraudulent sale of substandard medical testing kits and making false statements. Substantial evidence also indicates that he was the mastermind behind illegal laboratories in California and Las Vegas. Federal prosecutor Eric Grant stated that after a two-week trial, the 64-year-old Chinese citizen was convicted.
These 12 charges include one count of conspiracy to commit wire fraud, eight counts of wire fraud, two counts of selling substandard medical devices, and one count of making false statements to the U.S. Food and Drug Administration (FDA). Zhu fraudulently sold over a million sets of COVID-19 testing products nationwide, illegally profiting nearly $4 million.
Zhu’s business partner and lover Zhaoyan Wang was also indicted in this case but fled the U.S. before Zhu’s arrest in 2023, currently hiding in China. Grant emphasized that anyone posing a threat to public health and safety will face legal repercussions. Zhu’s actions are closely linked to the illegal operations found in the Reedley, California biological laboratory previously.
A report from the U.S. Congress’s Special Committee on U.S.-China Strategic Competition previously mentioned that Zhu was a fugitive who escaped from Canada to the U.S., suspected of stealing millions of dollars in American intellectual property. The laboratory allegedly received funding associated with the Chinese Communist Party’s United Front Work Department.
Zhu also used aliases such as Jesse Zhu, Qiang He, and David He in an attempt to obscure his identity and evade investigation. Evidence presented at trial showed that Zhu and Wang jointly founded Universal Meditech Inc. (UMI). UMI applied to the FDA for registration as a medical device manufacturer in 2015, with Zhu serving as the CEO.
Between August 2020 and March 2023, Zhu and others specifically hired inexperienced employees who wouldn’t question orders, importing defective COVID-19 testing products from China and then engaging in fraudulent packaging and distribution of these substandard products.
In August 2020 to March 2023, UMI imported substandard COVID-19 testing kits from China and distributed them through various false claims, including FDA approval, U.S. manufacturing, collaboration with accredited medical laboratories, and testing accuracy. The court documents also revealed that several employees involved admitted knowingly participating in wrongful activities due to fear of job loss and potential harm for defying Zhu’s orders. Many victims who purchased the substandard test kits testified in court.
In 2022, a victim filed a civil lawsuit against UMI. To avoid accountability, Zhu attempted to relocate UMI from Fresno to nearby Reedley, renaming the company Prestige Biotech Incorporated (PBI).
In March 2023, Reedley authorities discovered biological hazards in Zhu’s laboratory. They found thousands of vials containing bacteria and virus preparations, including coronaviruses, chlamydia, E. coli, streptococcus pneumonia, HIV, hepatitis, herpes, measles, and malaria. The lab was also packaging and mailing COVID-19 and pregnancy test kits and housing close to 1,000 test mice. Zhu was arrested in October of the same year, while Wang had already fled back to China.
On January 31 this year, Zhu, who was supposed to await trial in prison, emerged as the prime suspect in a newly discovered biological laboratory located hundreds of miles away in Las Vegas.
Based on a tip from a cleaner, authorities raided a residence in Las Vegas and uncovered what appeared to be an illegal biological laboratory in a locked garage. This residence was among several properties owned by Zhu or his accomplices in the Las Vegas area.
Local law enforcement reported finding over a thousand pieces of evidence, including vials and containers filled with unknown liquids and substances, many collected from refrigerators and freezers within the locked garage.
Court documents obtained by The Epoch Times revealed that Zhu is the prime suspect in the Las Vegas criminal investigation, alongside other suspects including Zhaoyan Wang and her mother Xiuqin Yao.
The documents also indicated that from January 1, 2025, to January 23, 2026, Zhu made or attempted nearly 7,000 phone calls while incarcerated, with over 3,500 calls conducted in Mandarin to Wang.
Zhu also made or tried to contact his property manager, Ori Solomon, a total of 467 times. Solomon was tasked with moving and concealing medical laboratory materials and equipment according to Zhu’s instructions. Investigators revealed that Solomon received orders to transfer funds to Zhaoyan Wang in China.
FBI Director Kash Patel mentioned in a written statement to The Epoch Times that the raid operation was based on court documents, existing evidence, and financial tracing. He explicitly emphasized the case’s connection to the Chinese Communist Party.
The Department of Justice stated that with the jury finding Zhu guilty on all 12 charges, he will be sentenced on August 24. The maximum statutory penalties he faces include up to 20 years in prison for the conspiracy charge and each wire fraud charge, up to 3 years in prison for each substandard medical device charge, and up to 5 years in prison for the false statement charge. The actual sentence will be determined by the judge’s discretion. ◇