A biolab in California, backed by Chinese investors, has come under scrutiny after receiving a significant amount of taxpayer money. The lab, which was recently raided, was discovered to be involved in illegal activities such as producing unauthorized Covid and pregnancy tests. It was also found to be storing disease-ridden mice and various samples of pathogens and other questionable chemicals.
Public records indicate that the company associated with the lab received nearly $150,000 from the US government through a Covid-related loan program. This financial support was divided into two separate loans in April 2020 and February 2021.
Furthermore, in 2018, the company received a substantial tax credit of $360,000 through California Governor Gavin Newsom’s CalCompetes program. However, due to the company’s failure to meet program guidelines, it never actually received these funds.
As the company faced more challenges, it ultimately went bankrupt in 2022. It was then taken over by its main creditor, a company with Chinese ownership, who relocated the operation to a warehouse in Reedley, California.
Authorities became aware of the black-market lab in late 2022 when a code enforcement officer noticed suspicious activity. This discovery led to a thorough investigation by state, local, and federal officials, who were shocked by the extent of the lab’s operations.
During their search, officials found numerous vials containing infectious viruses and bacteria, many of which were stored improperly. Some of the identified pathogens included malaria, herpes, meningitis-causing bacteria, chlamydia, Covid-19, and HIV.
In December 2022, the Food and Drug Administration issued a recall for approximately 56,000 Covid tests produced by the lab in California and Texas. The recall was due to the company’s failure to obtain pre-market approval from the agency. The fate of the pregnancy tests remains unclear.
The recall, along with other issues such as a small fire at the Fresno facility and an eviction threat, led to the company’s bankruptcy. Prestige Biotech then acquired the assets and relocated them to Reedley in late 2022.
The discovery of the lab and its illicit activities has raised concerns among officials. The origins and extent of Prestige Biotech’s involvement in the operation are still under investigation. It has been reported that the owners of Prestige Biotech are based in China.
The investigation into the lab has been challenging, as officials have faced resistance and a lack of transparency from those associated with the facility. The inquiries have included correspondence between county officials and individuals claiming to represent Prestige Biotech, but the legitimacy of their information has been called into question.
Overall, this case highlights the need for stringent oversight and regulation in the biolab industry to prevent illegal activities and ensure public safety.
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