US EditionChicago Lab Owner Sentenced to 7 Years for $14 Million COVID-19 Fraud Scheme
- In June 2025, 63-year-old Lorie A. Schaefer of Westerville was sentenced to 70 months in federal prison for her role in a scheme that resulted in nearly $2.8 million obtained through fraudulent COVID-19 relief claims.
- Schaefer fraudulently claimed affiliation with Ohio's Flying Pizza restaurants and submitted altered bank records and fake documents to obtain nearly $1.9 million in Paycheck Protection Program loans starting in December 2020.
- Federal prosecutors disclosed that she diverted stolen funds toward personal costs, including approximately $26,000 spent on cosmetic surgery, a $10,000 gift related to a newborn, over $900,000 invested in purchasing and refurbishing a property in Westerville, as well as various expenditures at several retail stores and restaurants.
- She also helped a co-defendant obtain over $980,000 in fraudulent relief loans and violated pre-trial release conditions, leading to bond revocation.
- This sentencing highlights ongoing pandemic relief fraud challenges and underscores federal efforts to prosecute misuse of funds intended to aid economic recovery during crises.
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14 Articles
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Eastvale woman sentenced to 7 years in prison for $1.7 million COVID-19 fraud scheme
A 30-year-old Eastvale woman who fraudulently obtained roughly $1.7 million in COVID-19 benefits was sentenced to seven years in prison on Wednesday, June 18. According to the U.S. Justice Department, Jasmine Unique Mallard-McCarter, a.k.a. “JassyMC,” acquired the money through various forms of fraud, targeting pandemic-related jobless benefits, federally guaranteed small business loans, California Small Business COVID-19 relief grants and Los …
Chicago lab owner sentenced to 7 years for $14 million COVID-19 fraud scheme
CHICAGO (WGN) - The owner of a laboratory in Chicago has been sentenced to seven years in prison for his role in a COVID-19 testing fraud scheme. Court documents said 46-year-old Zishan Alvi of Inverness, Illinois, owned and operated a lab in Chicago that conducted testing for COVID-19. In 2021 and 2022, Alvi submitted claims to the U.S. Department of Health and Human Services' Health Resources and Services Administration (HRSA) for COVID-19 tes…
Chicago lab owner receives seven-year sentence for Covid-19 testing fraud
The owner of a Chicago laboratory has been sentenced to seven years in federal prison for his involvement in a Covid-19 testing fraud scheme. Zishan Alvi, 46, from Inverness, Illinois, operated a lab that conducted Covid-19 tests. In 2021 and 2022, Alvi submitted numerous claims to the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for tests that were not conducted as billed.As part of the fraud…
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