A allergy testing company falsely claimed to be able to detect hundreds of allergens from hair samples, deceiving approximately 88,000 customers out of around $5.9 million. The company’s CEO, Kyle Tsui, was sentenced to 41 months in prison by a federal judge in the United States on September 17.
According to Damian Williams, the federal prosecutor for the Southern District of New York, the 41-year-old defendant Kyle Tsui, a resident of Ontario, Canada, founded an allergy testing company that claimed to be able to detect personal reactions to 800 different food and environmental allergens with just a small hair sample. Between September 2018 and April 2019, the company sold testing services online to 88,000 customers, amounting to approximately $5.9 million. However, the company never actually conducted any tests. Instead, they disposed of the samples received, falsified test results, and presented them to customers, illicitly profiting over $4.1 million.
Kyle Tsui was extradited from Spain to the United States in November 2023. He had previously admitted to charges of telecom fraud and mail fraud before Judge Judith C. McCarthy. On September 17, he was sentenced to 41 months in prison by federal Judge Kenneth M. Karas, with an additional year of supervised release and the forfeiture of $4,165,884.7 in illicit proceeds. Prior to sentencing, Kyle Tsui had already fully repaid his ill-gotten gains, which will be used to compensate the victims of the fraud.
If you are a victim of this scam, you can contact the Southern District of New York prosecutor’s office for assistance. For more details, visit the website: https://tinyurl.com/y3kcphbz