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Center For COVID Control Gets Sued By Another State, Which Alleges Local Owners Funneled Millions To Themselves While Doing Faulty Testing

The locally based company has now been sued by three states' attorneys general and is being investigated by the FBI. Oregon's attorney general filed suit Thursday, saying the companies should "never do business" again in that state.

A shuttered Center for COVID Control testing site at 2856 N. Campbell Ave. in Avondale on Jan. 24, 2022.
Colin Boyle/Block Club Chicago
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CHICAGO — The Center for COVID Control, a local COVID-19 testing company, is being sued by another state, which alleges the company provided “questionable” results and didn’t properly store and process tests.

The Center for COVID Control and its lab, Doctors Clinical Lab, are based out of suburban Rolling Meadows. It operated more than 300 pop-up testing sites around the United States, and its lab was reimbursed more than $170 million from the federal government for testing and treatments.

The companies are being sued by the attorney generals in Minnesota and Washington, have been warned by California’s attorney general and are being investigated by the FBI. Oregon joined the chorus of critics on Thursday, as its Attorney General’s Office filed suit against the Center for COVID Control and Doctors Clinical Lab.

The lawsuit alleges Aleya Siyaj and Akbar Syed, who owned Center for COVID Control, “funneled millions of dollars received from the federal government and insurances companies for testing to themselves.”

“They advertised quick and accurate test results, and people put their faith in them — during a time when testing for COVID-19 was in high demand,” Oregon Attorney General Ellen Rosenblum said in a statement. “As a result, Oregonians made crucial decisions — about returning to work or school, travel, and visiting family and friends — in reliance on shoddy tests.”

The businesses came under increased scrutiny after reports from Block Club highlighted concerns from customers about missing or delayed test results. Former employees told Block Club tests were left around the office in bags, unrefrigerated, for days at a time and they sought reimbursement from the government even when customers had private insurance. A company spokesman had denied former workers’ allegations.

Doctors Clinical Lab has been cited at the highest level by the federal Centers for Medicare and Medicaid. It has closed amid the scrutiny.

Rosenblum’s lawsuit asks that the companies be permanently banned from providing COVID-19 testing in Oregon, and it asks for civil penalties and restitution for residents who were “victimized.”

“We must make sure they never do business in our state again. The same holds for any other company trying to make a quick buck here from a public health crisis,” Rosenblum said in a statement.

The Oregon lawsuit echoes claims made by the companies’ former employees, customers and other states’ attorneys general.

Rosenblum’s suit alleges the Center for COVID Control and Doctors Clinical Lab saw a sharp uptick in the number of tests they collected and processed at the end of 2021; they couldn’t keep up with the demand, but continued to collect samples while “raking in” money from the federal government and insurance companies. The owners used that money to buy a mansion and multi-million-dollar luxury cars, according to the suit.

The owners didn’t properly educate their employees on collecting test samples, and the samples were not tested according to manufacturers’ instructions, “resulting in potentially inaccurate results,” according to the lawsuit.

The companies also didn’t send test results in the time advertised, sometimes never delivering results, according to the suit.

And tests were not kept properly while they waited to be processed, with workers storing them in garbage bags, at room temperature, on in shipping boxes or biohazard bags, according to the lawsuit. They sometimes sat for days or weeks before being tested; tests not stored properly would not produce accurate results, according to the lawsuit.

Despite those struggles, the companies continued to expand, according to the lawsuit. Customer service workers would falsely tell customers their results were coming within 24 hours, or that a person’s result was inconclusive and they should test again, even if they did not know if that was accurate, according to the lawsuit. The company also sent some customers emails that falsely blamed delayed results on “technical problems,” according to the lawsuit.

Read the full lawsuit:

From Axe-Throwing Lounges To COVID Tests

The Center for COVID Control is a management company to Doctors Clinical Laboratory. It provided tests and testing supplies, software, personal protective equipment and marketing services — online and printed — to testing sites, said a person who was formerly associated with the Center for COVID Control. Some of the sites were owned independently but operated in partnership with the chain under its name and with its guidance.

Doctors Clinical Lab is the lab that processed many of the chain’s tests and sent results to patients.

The business and the lab are run by Aleya Siyaj and Akbar Syed, a suburban Chicago couple who, before focusing on COVID-19 testing in 2021, ran axe-throwing lounges. Syed also created wedding videos.

Siyaj listed herself as the CEO of the Center for COVID Control on LinkedIn, and Syed referred to himself as the “founding father” of the business on his Facebook until recently. He also posted videos trying to recruit people to the business on Facebook; in one, he recorded himself speaking to an employee and asking the man to say what he makes.

The man said he has been with the company for four months and makes $1.45 million.

Syed appeared to remove that title and videos after being contacted by reporters.

Siyaj bought a $1.36 million home in November, USAToday first reported. The nearly 7,000-square-foot home has crystal chandeliers, a two-story living room, a library with a fireplace, a “master wing” with a bedroom and a 4-acre yard, according to a listing.

In Facebook posts, Syed wrote in December he had bought a rare Ferrari. An online listing said the car sold at auction for $3.7 million, not including commission.

Syed has also made references to the business on his TikTok, saying he’s been able to buy multiple luxury sports cars due to his work with COVID-19 testing, and writing that he owns dozens of testing sites and a lab.

In a post where Syed is shown bidding $400,000 for a Lamborghini at a car auction, someone asked him what he does for a living.

“My axe throwing lounges were forced shut by the gov due to covid,” Syed wrote on Aug. 17. “So I opened up a covid testing site than bought the lab and now i have 65 sites.”

In an Aug. 29 video where Syed talks about buying a Countach, a luxury sports car, someone asked, “Oil money?” Syed replied, “Not even sure what means.. but no covid money.”

In another post, someone asked Syed how could he afford “all those cars.” “Covid testing,” Syed replied. “Rapid and pcr both.”

Syed’s nephew also posted videos on YouTube showing Syed “unveiling” a 2018 Ford GT, and other videos show the car in Syed’s driverway, USAToday reported. The same car sold for $985,000 in early December.

And in an exchange Dec. 20-21, someone criticized Syed’s business because they’d “been waiting for 2 weeks” for PCR results, he wrote.

“Give us another shot,” Syed wrote. “We are ready for the surge now.”

Syed’s TikTok account was taken down after reporters contacted him.

Credit: Colin Boyle/Block Club Chicago
A person walks past Center for COVID Control’s rapid and PCR testing site, 3619 N. Broadway, in Lakeview on Dec. 29, 2021.

Frustration Across The Nation

The Center for COVID Control has now closed its pop-ups.

But people going to its sites across the United States raised questions about numerous issues: dirty sites, long lines, crowded rooms, workers not wearing masks or gloves, workers trying to charge for tests that should be free or telling people to put down that they don’t have insurance when they do, among other problems.

But chief among many people’s concerns was getting their results and ensuring they were accurate.

Block Club spoke to people tested at various sites who said they never received results, experienced long wait times — sometimes weeks — before getting results or got back results that didn’t make sense to them.

Robert McNees, of Rogers Park, stopped by a Center For COVID Control site with his family Dec. 22. But the facility was crowded and “chaotic,” and the family wasn’t given instructions for doing the tests, McNees previously said. They opted not to take the tests or turn them in — but about five hours later, every member of the family was emailed a negative result from the company, he said.

Kristen Wylie, of Kalamazoo, Michigan, said she and her partner tested five times over a two-week period at one of the chain’s sites in her area. Her partner tested positive through a rapid test at the site on Dec. 20, but they both got negatives when they tested at the site in the days after that. They then got a PCR test at an unrelated pharmacy and both came back positive.

Trevin Cox, of Logan Square, stopped by a Center for COVID Control testing site Dec. 23 after being exposed. The site’s rapid test gave him a negative result, as did a rapid and PCR result at a pop-up under another chain. But Cox lost his sense of smell, had a fever and had other symptoms. An at-home test came back positive.

Credit: Colin Boyle/Block Club Chicago
An employee wears PPE at Center for COVID Control’s rapid and PCR testing site, 3619 N. Broadway, in Lakeview on Dec. 29, 2021.

Jacob Bennett, of Lakeview, was tested Dec. 21 and still hasn’t received his rapid test results.

“It’s not useful if they don’t give you the results that were promised,” Bennett said. “I don’t have any reason to think that the actual testing is problematic — but not getting a result defeats the entire purpose.”

A Denver woman, who asked that her name not be used, took rapid and PCR tests Oct. 18 at a Center for COVID Control site in Colorado; her rapid result was positive. But her company required a PCR result, which the site hadn’t sent her. She called in, waiting about an hour and a half to speak to someone with the Center for COVID Control — and the worker she eventually reached told her, essentially, “We don’t know,” she said.

About a week after taking the test, the woman got her result emailed to her — and the PCR results said she was negative, she said. A PCR test she took at a state-run facility showed she was positive.

“Out of the three [tests] I took that week, theirs was the only one I was told ‘negative’ — and the one I waited the longest for,” she said. At another point, she said, “Which is scary because if you get that negative test and you haven’t received others, you’re probably going back out into the population like everything is OK.

“While that negative didn’t mean a whole lot to me, I was angry for the sake of others who may have been getting it and therefore spreading it. … You’re a huge role in people knowing that they’re positive and not spreading it. So if you’re giving out wrong results or fake results … that’s a huge issue.”

HELP US REPORT: Have you been tested at a COVID-19 pop-up? Click here to tell Block Club about your experience.

Another concern for many: People who were emailed a negative test result were provided with a PDF that contained a QR code. Scanning the QR code took the viewer to a Doctors Clinical Lab website that tells anyone who looks at it they are negative — even people who never tested at a Center for COVID Control site.

The website was not coded in a way where its result would change, and it was not customized to show the results of individual patients. The only element that would change on the website was its timestamp. It was publicly available to all.

The website also contained a QR code that, if scanned, would take the viewer to a Google search of the word “negative.”

The website was updated after reporters contacted the Center for COVID Control and Doctors Clinical Lab. It then said it cannot show the results of an individual due to HIPAA laws.

People who were sent a positive test result were also sent a QR code; that one went to the Google search for “positive.”

Doctors Clinical Lab had a website that anyone, including people who had not been tested or people who might be positive, could access to see a negative COVID-19 test result.

Investigations

The Center for COVID Control and its partner lab, Doctors Clinical Lab, are facing several investigations among federal and state authorities.

The Centers for Medicare and Medicaid Services, which regulate and certify labs, have cited the Rolling Meadows-based lab for “immediate jeopardy”-level deficiencies — the highest level — in three areas: general laboratory systems, analytic systems and laboratories performing high complexity testing.

The deficiencies were found in various labs, including the main laboratory, on various days in November and December. The report was issued Dec. 8.

The Centers for Medicare and Medicaid Services “has a record of complaint surveys being performed at Doctors Clinical Laboratory,” an agency spokesperson said. The agency “identified non-compliance and is waiting for a response from the laboratory to the deficiencies cited.”

Inspectors from various states highlighted a number of issues in the report.

They said Doctors Clinical Lab didn’t have enough personnel to test all the PCR samples it got, and it did not have enough freezer space to store them, which resulted in more than 41,000 samples being unusable during an 11-day period in November.

Inspectors also found the lab wasn’t do quality control testing on the machine used to test samples, and workers at testing sites weren’t properly conducting rapid tests, among other issues.

Credit: Colin Boyle/Block Club Chicago
A person walks up to get tested at Center for COVID Control’s rapid and PCR testing site, 2670 N. Lincoln Ave., in Lincoln Park on Dec. 29, 2021.

The Center for COVID Control and Doctors Clinical Lab have also faced scrutiny from other agencies.

The Illinois Attorney General’s Office has received complaints about the Center for COVID Control and has opened an investigation, a spokesperson said.

Multiple attorney general’s offices in other states told Block Club they have received complaints about Center for COVID Control sites.

A spokesperson for the Illinois Department of Public Health said the agency is investigating complaints against the lab. Other state health departments are also investigating.

The Better Business Bureau, a non-government agency, is also looking into complaints about the business, said Steve Bernas, president of the agency’s Chicago division. The organization has given the Center for COVID Control an “F” rating, its lowest.

The complaints have alleged they didn’t get test results, the test results were inconclusive or they paid for expedited testing results, but did not get results in the time that was promised, Bernas said.

Credit: Colin Boyle/Block Club Chicago
Center for COVID Control’s rapid and PCR testing site, 3619 N. Broadway, in Lakeview on Dec. 29, 2021.

Experts have also raised questions about the company’s billing practices.

Doctors Clinical Lab, the lab Center for COVID Control uses to process tests, makes money by billing patients’ insurance companies or seeking reimbursement from the federal government for testing. Insurance statements reviewed by Block Club show the lab has, in multiple instances, billed insurance companies $325 for a PCR test, $50 for a rapid test, $50 for collecting a person’s sample and $80 for a “supplemental fee.”

In turn, the testing sites are paid for providing samples to the lab to be processed, said a person formerly associated with the Center for COVID Control.

In a January video talking to testing site operators, Syed said the Center for COVID Control will no longer provide them with PCR tests, but it will continue supplying them with rapid tests at a cost of $5 per test. The companies will keep making money for the rapid tests they collect, he said.

“You guys will continue making the $28.50 you’re making for the rapid test,” Syed said in the video.

Any time there is money flowing between a provider to any kind of patient, it raises concerns about the United States’ anti-kickback statute, said Jeb White, CEO of Taxpayers Against Fraud, a nonprofit dedicated to fighting fraud.

The statute prohibits organizations from receiving money in exchange for things like referring patients or patronage to a lab.

“At the very least, it is worth a heightened level of scrutiny to see if there is any quid pro quo playing out here,” White said.

Customers have also reported being told to not put down their insurance information even if they have insurance. In those cases, the federal government likely ends up paying for those tests.

Public data shows the federal government has reimbursed Doctors Clinical Laboratory more than $170 million for COVID-19 tests and “treatments.”

If workers are telling people not to put down insurance information, those charges are being passed to the government “needlessly” and creating a “harm” to the government, White said.

READ MORE

• LabElite, COVID Testing Lab Raided By FBI, Failed To Report Thousands Of Test Results, Feds Say

• FBI Raids Another Chicago COVID Testing Company — Which Has Gotten $77 Million From The Feds

• Troubled Center For COVID Control Must Prove It Followed State Rules, California Official Says

• Could New Laws Fix The Problems With COVID-19 Testing Pop-Ups? Legislator Proposes Bills To Rein In Sites, Labs

• Center For COVID Control’s ‘Sham’ Testing Sites Put People At Risk With False Results, Tests In Garbage Bags, New Suit Alleges

• Center For COVID Control Shutting Down Amid Federal, State Investigations, Employees Told

• Yet Another COVID-19 Testing Company That Got Millions From The Feds Being Investigated After Patients Say Their Results Were Flawed

• Another Major COVID Testing Company — Which Got $186 Million From The Feds — Is Under Investigation As Complaints Pile Up

• Center For COVID Control’s Headquarters Raided By FBI

• Center For COVID Control Closed For ‘Foreseeable Future’ In Illinois Amid Federal, State Investigations

• Center For COVID Control Got $124 Million From Feds While Telling Workers To Lie About Results, Throw Tests In The Trash, Ex-Employees Say

• Center For COVID Control Faked Test Results, Minnesota Attorney General Says In New Lawsuit

• COVID Tests Seemed To Vanish Just When Chicagoans Needed Them Most — And Despite Officials Predicting Surges For Months

• COVID-19 Testing Chain Opened Pop-Ups Across The US. Now, It’s Temporarily Closing Amid Federal Investigation And Mounting Complaints

• Be Cautious Around COVID-19 Testing Pop-Ups, Illinois Attorney General Warns

• Pritzker Vows To Shut Down ‘Fly-By-Night’ Pop-Up COVID Testing Sites, Calling Them An ‘Enormous Problem’

• COVID Test Shortage Forces Chicagoans To ‘Hell-Hole’ Pop-Up Sites With Unmasked Workers, Missing Results

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