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Owner of Reedley Lab that Stored Deadly Viruses Convicted of $4M Fraudulent Sales

Jurors said Zhu sold more than 1.4 million faulty COVID-19 test kits and lied to regulators about his identity and the company’s role.

  • On Tuesday, a federal jury convicted Jia Bei Zhu on 12 counts, including wire fraud and distributing misbranded medical devices, following a two-week trial in Sacramento regarding his illegal biolab operations in California.
  • Between August 2020 and March 2023, Zhu sold more than 1.4 million faulty COVID-19 test kits for nearly $4 million through Universal Meditech Inc. and Prestige Biotech, falsely marketing them as FDA-authorized.
  • Investigators discovered unsanitary conditions at the Reedley site, including pathogens stored in juice and soda containers, while court records revealed Zhu fled a $330 million intellectual property judgment in Canada before entering the United States.
  • U.S. District Judge Dale A. Drozd scheduled Zhu's sentencing for August 24, 2026, where he faces up to 20 years in prison; his romantic partner, Zhaoyan Wang, remains a fugitive in China.
  • Reedley City Manager Nicole Zieba noted significant unanswered questions regarding how Zhu acquired deadly pathogens, as Congressmen Jim Costa, David Valadao, and Kevin Kiley introduced legislation to strengthen oversight of high-contaminant research laboratories.
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The Business Journal broke the news on Wednesday, May 6, 2026.
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