The Feds have arrested a man identified as Zhu, aka David He. Putting him behind bars in 2023 while he awaits trial on serious fraud allegations and alleged ties to the Chinese government. Now Zhu, a fugitive operating from Canada, has established an enormous business empire that allegedly sold counterfeit COVID-19 tests — falsely advertised as made in America. His purportedly fraudulent dealings have spilled on to the radar of U.S. government officials and congressional committees.
Zhu and his business partner, Zhaoyan Wang, operated two high-flying companies—Universal Meditech Inc. and Prestige Biotech Inc. Collectively, they marketed and sold test kits for COVID-19, pregnancy and more. Authorities claim the duo imported hundreds of thousands of COVID-19 test kits from a Chinese company under their control and falsely represented them as being manufactured in the United States. According to prosecutors, the two made around $1.7 million through this purported scheme.
The scrutiny of Zhu quickly became acute. A U.S. congressional committee recently revealed that banks within the People’s Republic of China had paid him more than $1 million. This set off alarms over his ties to foreign actors and possible national security threats. The way these payments are being worked out is truly alarming. They are at odds with Zhu’s alleged business operations, which would have required Zhang and Zhu to pay Chinese manufacturers for the test kits rather than receive money from American purchasers.
Zhu’s legal woes snowballed from there, after officers and federal agents stormed his home in northeast Las Vegas on January 31. The authorities had previously been keeping a very close eye on him, because they suspected that something fishy was happening in his operations. Relatedly, reports surfaced that he attempted to disguise his identity while meeting with federal officials. At one point he even claimed he didn’t speak English when they harassed him for information.
Still, he has been resolute in sticking to his claim of no wrongdoing. Zhu has entered a not guilty plea to the indictments against him, claiming he has been singled out and unjustly treated. His attorney, Anthony Capozzi, argued that the accusations of operating an “illegal Chinese lab” had no basis in fact.
“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.” – Anthony Capozzi
Wang Zhu’s girlfriend, Wang, left on a one-way ticket to China with their newborn son. They covered up the trip by calling it a family vacation. They have not returned since their departure, raising even more questions about Zhu’s business connections to China and personal ties to the country.
As authorities scour Zhu’s operations, there are serious questions about what went on in Zhu’s Las Vegas home. Local resident Jesalyn Harper was nervous about the whole thing. She didn’t wait — she became an advocate after observing some unusual, illicit activity.
“I realized I’m in trouble, and I need to get out of this building without tipping them off that I’m scared,” – Jesalyn Harper
It was Harper’s observations that ultimately drove her to file a report with law enforcement—a very brave thing to do. She noted that law enforcement seemed happy with their arrest of Zhu. She questioned whether they would really do a thorough investigation of what was happening at his home.
“The attitude really has been, well, we caught the guy. We did our part.” – Jesalyn Harper
Chris Delzotto, a concerned local, kept a watchful eye on the proceedings. He raised questions that cut to the heart of what Zhu was doing.
“What were they testing for? What possibilities are being considered?” – Christopher Delzotto
Delzotto stressed the importance of having robust investigative processes when public health and safety are at potential risk. He observed that investigations into issues like this often need to take a slow, methodical approach.
“In cases like this, our process relies on being slow and methodical.” – Christopher Delzotto
The multifaceted nature of Zhu’s case is deepened still by his long-standing history with fraudulent behavior. A 2023 report by the now-defunct House Select Committee on the Chinese Communist Party declared him a “serial fraudster”. He used to play in Canada and then made the transition to the US. There, he became very successful in tackling different ventures of the cattle industry but later found himself selling medical test kits.
His fraudulent practices, which Zhu claims as “receiving payment before rendering services” raised eyebrows with multiple law enforcement agencies in Canada and the U.S. His ties to China have been the source of dangerous national security threats and public health risks.
Capozzi passionately argued in defense of his client’s behavior. He elaborated the timely and particularized reasons Zhu sought asylum in the US, namely, his fear of persecution at the hands of the PRC government.
“He’s applied for asylum here in the United States because of the Chinese government.” – Anthony Capozzi
Zhu’s defense team adamantly claims that Zhu is not engaged in any criminal enterprise. Essentially, they refuse the label of bioterrorism that has been applied to his acts.
“What went on in that residence we are unaware of,” – Anthony Capozzi
Federal authorities are continuing to sort out the entire extent of Zhu’s operation and his ties to foreign entities. Unsurprisingly, they are trying to dodge any liability for his reckless activities. The atrocities in Zhu’s case have been recently uncovered as investigations are still ongoing.
