(Watch my previous show below on this matter if you haven't.)
DOJ Announcement and Guilty Verdict
The U.S. Department of Justice announced on May 6 that a federal jury convicted 64-year-old Chinese citizen Jia Bei Zhu (祝加贝) on all 12 criminal charges after a two-week trial. The charges include one count of conspiracy to commit wire fraud, eight counts of wire fraud, two counts of selling adulterated medical devices, and one count of making false statements to the FDA.
Zhu fraudulently sold more than one million defective COVID-19 test kits nationwide, generating nearly $4 million in illegal profits. U.S. Attorney Eric Grant stated that anyone who endangers public health and safety will face justice. The case is directly tied to the previously uncovered illegal biological laboratory in Reedley, California.
Business Partner Flees to ChinaZhu’s business partner and romantic partner, Zhaoyan Wang (王兆彦), was also charged but fled the United States before Zhu’s 2023 arrest. She remains in hiding in China.
Multiple Aliases and Company OperationsZhu operated under several aliases, including Jesse Zhu, Qiang He, and David He, to evade detection. He and Wang founded Universal Meditech Inc. (UMI), which registered with the FDA in 2015 as a medical device manufacturer with Zhu as CEO.
From August 2020 to March 2023, Zhu and his associates imported large quantities of defective COVID-19 test kits from China. They hired inexperienced employees who were instructed not to question orders, then repackaged and distributed the substandard products. Trial testimony from employees revealed they knew the actions were wrong but complied out of fear of job loss or physical harm. Victims who purchased the faulty test kits also testified.
Shift to Reedley Lab After LawsuitIn 2022, a victim filed a civil lawsuit against UMI. To evade accountability, Zhu moved the operation from Fresno to nearby Reedley and rebranded the company as Prestige Biotech Incorporated (PBI).
In March 2023, Reedley code enforcement officer Jesalyn Harper discovered severe biohazards at the facility. Authorities found thousands of vials containing pathogens including coronavirus, chlamydia, E. coli, Streptococcus pneumoniae, HIV, hepatitis, herpes, rubella, and malaria. The lab was actively packaging COVID-19 and pregnancy test kits and housed nearly 1,000 laboratory mice. Zhu was arrested in October 2023.
Remote Control of Las Vegas Lab from Prison
Even while in custody awaiting trial, Zhu allegedly directed a new illegal biological laboratory in Las Vegas. On January 31, police raided a residential property based on a tip from a cleaner. Inside a locked garage they discovered what appeared to be another illegal bio-lab. The property was linked to Zhu or his associates.
Investigators recovered over 1,000 pieces of evidence, including numerous vials and containers with unknown liquids stored in refrigerators and freezers. Court documents name Zhu as the primary suspect, along with Zhaoyan Wang and her mother Xiuqin Yao.
From January 1, 2025, to January 23, 2026, Zhu made or attempted nearly 7,000 phone calls from prison, more than 3,500 of them in Mandarin to Wang. He also called property manager Ori Solomon 467 times, directing him to move and hide lab materials and equipment and to send money to Wang in China.
CCP Connections Highlighted
A prior report by the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party identified Zhu as a fugitive from Canada who allegedly stole millions of dollars in U.S. intellectual property. Evidence suggests the labs received funding linked to the CCP’s United Front Work Department.
FBI Director Kash Patel stated that the Las Vegas raid was based on court documents, evidence, and financial tracking, and explicitly noted the case’s connection to the Chinese Communist Party.
SentencingZhu faces sentencing on August 24. The statutory maximum penalties are up to 20 years in prison for the conspiracy and each wire fraud count, up to 3 years for each count of selling adulterated medical devices, and up to 5 years for the false statement charge. The final sentence will be determined by the judge.
This case exposes serious national security and public health vulnerabilities stemming from CCP-linked actors operating illegal biological facilities on American soil.
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