Zhu, 40, also known as David He, awaits extradition from the United States, where he was taken into custody on 6 October. He’s currently sitting indicted on a very complicated case with international fraud, commitment of statements of misrepresentation on medical products, and supposed connections to biolabs. Zhu has been involved in numerous fraud schemes and runs companies connected to the People’s Republic of China. He attracted some serious rockstar treatment after law enforcement staged a Hollywood-style pre-dawn raid on his Las Vegas home on January 31, which led to his unexpected arrest.
Zhu’s legal troubles started long before his arrest. Investigations have revealed a complicated scheme of fraud and lies in the COVID-19 test kit marketplace. Prosecutors allege that Zhu and his business partner, Zhaoyan Wang, imported hundreds of thousands of test kits from a Chinese firm they controlled, falsely marketing them as American-made. According to press accounts, this scheme netted the duo over $1.7 million. It compounds Zhu’s current legal troubles as he is facing charges on multiple counts.
As the investigation deepened, it was evident that Zhu had gone to great lengths to hide his identity from government authorities. When asked to respond, he reportedly feigned ignorance of the English language, leading investigators to believe he was hiding his true intention and origin. In October, a congressional report by the House Select Committee on the Chinese Communist Party put Zhu on their list of top ten wanted fugitives living in Canada. Now, they have tagged him a serial fraudster.
The HUD-OIG investigation revealed substantial wire transfers between Zhu and Chinese banks. These transactions were over $1 million and raised red flags during the fraud allegations. Such payments were understandably concerning, in light of Zhu’s alleged efforts within the United States. The committee noted, “These payments do not accord with Zhu’s fraudulent activity, as he should have been paying money to PRC firms for the test kits and receiving payments from American individuals or companies who purchased the counterfeit test kits.”
Zhu’s ties to Wang further complicated the otherwise straightforward story that had become the ongoing saga. Following his arrest, Wang and their newborn son boarded one-way flights to China while telling family that they were going on an extended family vacation. They have not been back ever since. As such, this unexpected announcement comes as no surprise with many wondering what exactly the couple planned to do and how they participated in the alleged schemes.
Jesalyn Harper, who had been following Zhu’s case closely, commented on the federal response: “I couldn’t get them to move on it,” expressing frustration over perceived delays in addressing Zhu’s activities. She noted the attitude among authorities regarding the situation: “The attitude really has been, well, we caught the guy. We did our part.”
The case has continued to raise concern and outrage from local residents and officials. Christopher Delzotto stated, “We recognize that the public is seeking clarity. What were they testing for? What possibilities are being considered?” He emphasized the need for a thorough investigation: “In cases like this, our process relies on being slow and methodical.”
Zhu’s bail situation raises additional questions. Law enforcement seized the spotlight on his five-bedroom, 2½-bath palatial mansion in northeast Las Vegas. With only about 400 calls received in a year, it became an outlier in its focus of concern. This development raised red flags about continued communication perhaps related to business interests or personal friendships.
In addition, Anthony Capozzi, Zhu’s lawyer, vigorously disputed claims that his client had played a part in any illicit behavior. “The law is strong, but the outlaws are 10 times stronger,” he asserted. He further refuted claims regarding a biolab operating at Zhu’s residence: “What went on in that residence we are unaware of,” adding that “not involved in any kind of a biolab being conducted in a home in Las Vegas.”
Even the portrayal of Zhu’s company as an act of bioterrorism was subject to incredulity. Capozzi stated that such claims lack factual support: “The characterization of Zhu’s company operating an ‘illegal Chinese lab and of engaging in bioterrorism’ doesn’t have ‘even a scintilla of factual support.’”
As lawsuits go forward and as we learn more about Zhu’s transactions and ties to the People’s Republic of China (PRC), public attention is at a fever pitch. We are committed to finding out everything he was doing and making sure justice is served.
