Illinois lab owner charged in alleged $66.2 million COVID-19 testing scheme

On October 20, 2026, the Office of Public Affairs said a federal grand jury in the Northern District of Illinois indicted Rajesh “Raj” Patel, 52, of Schaumburg, Illinois, on five counts of wire fraud. The release says each count carries a maximum penalty of 20 years in prison and that an indictment is merely an allegation. ¹ Source 1

According to the release, Patel was co-owner and chief operating officer of a clinical laboratory in Hillside, Illinois. It alleges that between May 2021 and April 2022 he created fake negative results for at least 380,000 PCR tests on specimens provided by Meridian Medical Staffing Inc. that the laboratory never performed, so the laboratory could bill the HRSA Uninsured Program, which covered COVID-19 testing for people without health insurance. ¹ Source 1

The release says the laboratory submitted about $66.2 million in claims to HRSA, that HRSA paid about $44.1 million, and that Patel personally obtained about $28 million. The FBI Chicago Field Office and HHS-OIG investigated the case. ¹ Source 1