(Image: T&A)
A former councillor found guilty of fraudulent trading, causing a public nuisance, and money laundering whilst running a bogus Covid-19 testing centre will be sentenced in December.
Faisal Shoukat, 39, a pharmacist of Savile Park, Halifax, and a former councillor on Calderdale Council, was convicted at Bradford Crown Court of offences related to his role as co-director of RT Diagnostics, a coronavirus testing business that put public health at risk by knowingly providing false negative test results and misled thousands of customers.
The verdict follows an investigation led by West Yorkshire Joint Services West Yorkshire Trading Standards and the Medicines and Healthcare Products Regulatory Agency, which was supported with funding from National Trading Standards.
RT Diagnostics, which began providing a general population testing service on April 20, 2021.
One month later, on May 20, it began providing PCR tests for those who had arrived into the country from abroad.
In reality the company’s processes were found to be “profoundly flawed” by His Honour Judge Christopher Smith as it failed to carry out proper testing procedures, made inaccurate claims about being accredited, and knowingly issued false negative results to customers.
In turn it released infected persons into the community.
Evidence presented during the trial showed RT Diagnostics failed to carry out tests that consumers had ordered and paid for, provided test results that were fake or false, and failed to ensure samples and test results were properly handled, stored, and reported.
The court heard how only 45 positive results were reported from 138,738 PCR tests between May 21 and July 21, 2021 – with 99.96 per cent of results reported as negative.
This meant customers were provided with negative test results – including false negatives – which may have allowed infectious individuals to circulate freely, posing a serious risk to public health.
Witnesses told the court how the working practices were chaotic, with boxes of test vials lying around the lab, barcodes on test kits being duplicated and, in some instances, barcodes being fabricated.
The court also heard how negative online reviews and customer complaints about missing or delayed test results led the company to direct its junior staff – including employees aged 15-17 – to manually enter false negative results.
Other people involved in the trial were acquitted.
Shahid Malik, 58, of Colne Road, Burnley, and a former MP for Dewsbury, was found not guilty of fraudulent trading, causing a public nuisance, and money laundering.
Mr Malik, a former MP for Dewsbury, started the business with Shoukat when the third national lockdown was ending in March 2021.
Paul Moore, 57, of Plover Street, Burnley, who had a senior role in RT Diagnostics and was Mr Malik’s office manager when he was an MP, was cleared of causing a public nuisance and fraudulent trading.
Lynn Connell, 65, of Waggon Farm, Ash Hall, Ripponden, a manager at the company, and registered scientist Dr Alexander Zarneh, 71, of Wood Lane, Hipperholme, Halifax, who was its clinical director, were also cleared of the same two offences.
Speaking after the verdicts, Wendy Martin, Director, National Trading Standards said: “This was a calculated fraud carried out at a time when the country was facing an unprecedented public health crisis.
“Shoukat took advantage of the pandemic to make millions of pounds while failing to provide the safe and reliable testing service they promised. In doing so, he not only deceived customers but potentially placed lives at risk.
“Today’s verdict sends a clear message that businesses which exploit emergencies for financial gain will be investigated and brought before the courts.”
Linda Davis, Head of West Yorkshire Trading Standards Protecting Communities, said: “The global Covid-19 pandemic was a profoundly difficult time, resulting in significant illness and loss of life amongst the public.
“This long and complex investigation related to a substantial fraud that exploited the intense demand for testing during that period. The victims in this case were the public as a whole, from individual consumers who purchased a Covid-19 testing service, to those who subsequently came into contact with RT Diagnostics’ customers who had been given unreliable results.
“Consumers were sold Covid-19 tests that were not properly validated, not carried out in accordance with Testing Regulations, and/or not conducted at all.”
Cllr Michael Livsey, chair of the West Yorkshire Joint Services Committee, which oversees the work of West Yorkshire Trading Standards, said: “This outcome represents a successful conclusion to what has been an exceptionally complex investigation.
“West Yorkshire Trading Standards reinforces its commitment to protecting the public from fraudulent and dangerous practices.
“This case highlights the serious consequences faced by those who exploit public health emergencies for financial gain – and thank you to the West Yorkshire Trading Standards investigation team for working tirelessly over a very long period of time to bring the offender to justice.”
James Pound, MHRA Executive Director, Innovation and Compliance, said: “This case represents a serious breach of trust during a period when people depended on accurate Covid 19 testing to protect themselves and their communities.
“By putting profit above public safety, those involved undermined confidence in vital public health measures and exposed individuals to unnecessary risk.
“Today’s verdict underlines our determination to take robust action against anyone who jeopardises public safety through fraudulent or unsafe practices.
“I’m proud of the commitment and professionalism shown by my team and partners throughout this complex investigation, which has ensured those responsible have been held to account.”
National Trading Standards said it is committed to protecting consumers and ensuring that businesses operate lawfully and safely.
Anyone with concerns about fraudulent trading or unsafe business practices is encouraged to report them to Citizens Advice or their local Trading Standards service.
Shoukat will be sentenced on December 4 at Bradford Crown Court.