Illegal China-Backed Biolab in California: Unlicensed Mice, COVID Test Kit Fraud Uncovered

Federal authorities have brought new charges against the operators of an illegal underground biolab found in a Central California community last fall. The biolab was reportedly backed by China and was discovered to have unlicensed mice and infectious agents.

The Discovery and Initial Charges

The news of the illegal biolab's existence came to light with the arrest of Jia Bei Zhu, a 62-year-old citizen of China, who was previously indicted for distributing bogus and misbranded COVID-19 test kits in violation of the federal Food, Drug, and Cosmetic Act. Additionally, he was charged with making false statements to authorities about his identity and involvement with the biolabs.

New charges have been filed against Zhaoyan Wang, 38, also a citizen of China, who officials described as a "romantic and business partner." The charges reveal that from August 2020 through March 2023, Zhu and Wang conspired to defraud buyers of UMI and PBI's COVID-19 test kits. They imported hundreds of thousands of COVID-19 test kits from Ai De Ltd., a company in China that they controlled, and falsely represented to the buyers that the test kits were made in the United States.

Furthermore, authorities discovered that they illegally imported the COVID-19 test kits, which they were not approved to import, by falsely declaring them as pregnancy test kits, which they were approved to import. 

According to Joe Prado, assistant director for the Fresno County of Public Health, the lab was using mice "to see whether or not the COVID test kits were actually testing for COVID." They also falsely claimed that UMI and PBI could make up to 100,000 COVID-19 test kits per week in the United States and that the test kits were made in connection with other labs certified by the Centers for Disease Control and Prevention.

Moreover, Zhu and Wang misrepresented to buyers that the test kits were approved by the Food and Drug Administration (FDA), ultimately making over $1.7 million through their fraudulent activities. When buyers requested to inspect the facilities in Fresno and Reedley, Zhu and Wang allegedly denied them access under various pretexts, including undergoing construction and renovation.

Shocking Findings and Laboratory Shutdown

Upon inspection, health inspectors found nearly 1,000 lab mice, 200 of which were dead, inside the lab, as previously reported by FOX 26. They also discovered thousands of vials, some containing human blood and other substances. The Environmental Protection Agency (EPA) contracted a hazmat crew to remove 800 containers of chemicals from the underground biolab, showcasing the hazardous conditions present within the facility.

In early July, the lab was shut down, but Zhu was not tied to or charged with the various biological agents found in a previously empty warehouse. Zhu's next court date is set for Sept. 11, while Wang's whereabouts remain uncertain as she is currently not in custody and it is unknown if she is still in the country.

Potential Sentences and Impact

If convicted, Zhu and Wang each face a maximum of 20 years in prison for the conspiracy and wire fraud charges, in addition to three years in prison for the distribution of fake and misbranded medical device charges. Furthermore, Zhu faces another five years in prison for the charge of making false statements. 

The discovery of the illegal biolab and the subsequent charges shed light on a disturbing operation that not only posed a threat to public health and safety but also involved fraudulent activities with serious legal implications. The involvement of foreign nationals in such activities raises concerns about the potential risks posed by illicit biomedical practices and the need for stringent regulations and monitoring in this field.

The repercussions of this case extend beyond legal consequences, as it highlights the vulnerabilities in the biosafety and regulatory frameworks that govern biomedical practices. It underscores the importance of vigilance and collaboration among authorities at various levels to prevent illicit activities that could endanger public health and safety.

The outcome of the legal proceedings against Zhu and Wang will be closely watched, as it will not only determine their individual fates but also serve as a precedent for addressing similar cases in the future. As the investigation continues, it is crucial to pursue measures that strengthen the integrity and oversight of biomedical practices to mitigate the risks associated with illegal operations of this nature.

The discovery of the illegal biolab, the charges against its operators, and the implications of their actions underscore the critical need for robust safeguards and vigilance in the realm of biomedical practices to safeguard public health and safety.