Federal and state agencies are investigating a COVID-19 testing company, which claimed to have operated more than 300 pop up locations in the U.S.

On Monday, the Washington Attorney General Bob Ferguson filed a second lawsuit against the Illinois-based Center for COVID Control. He called it a “sham testing center” and accused it of incorrectly handling tests, providing fake results, or even not reporting any.

The lawsuit was filed in King County Superior Court. It alleges that the testing company, which was founded in 2020 by Akbar Syed (married) and Aleya Syed (wife), “failed” to provide prompt, valid, and accurate results to customers. Ferguson stated that employees were instructed to lie to patients daily.

According to the AG’s office, the testing center was also accused of incorrectly billing patients. Employees were instructed to lie to patients who called repeatedly asking for results. The company then charged the patient for two tests instead of one.

The lawsuit claims that the testing center contributed to COVID-19’s spread by providing incorrect test results to patients.

According to USA Today, the Federal Bureau of Investigation had searched Rolling Meadows in Illinois, the headquarters of the Center for COVID Control. This was after several investigations had been launched into the company.

CBS MoneyWatch did not reach out to the Chicago FBI office for comment. Neither did the Center for COVID Control. USA Today was told by a spokesperson for the testing chain that the company had been in contact with several regulatory and law enforcement agencies about the company’s operations for “the past few weeks.”

The Center for COVID Control stated that all company operations were suspended at the moment and that COVID-19 testing is not being conducted at any of its locations.

“CCC is committed to providing the highest quality customer service and diagnostic accuracy and will not resume collecting patient samples until staffing resources allow CCC to operate at maximum capacity,” the company said. However, it noted that it plans “to train additional staff on sample collection handling and customer service best practices as well as compliance to regulatory guidelines.”

The Center for COVID Control had more than 300 sites for testing across the U.S. and was processing samples through a partner laboratory at the height of its operations.

USA Today reported that Siyaj and Syed displayed their wealth via social media by posting photos of expensive cars including Lamborghinis, Ferraris, and new homes.

Try samples “stuffed into trash bags”

Minnesota’s Attorney General has filed a lawsuit against Center for COVID Control, its main laboratory, and alleging that they “either failed or delivered test results which were falsified, inaccurate, or both.” This is after Minnesotans who relied upon the company complained about never receiving their COVID-19 results.

Others in Minnesota claimed they were given test results by other people. According to state prosecutors, more people complained that they received test results with inaccurate or false information.

Ex-employees of the company claimed that demand for their services increased so quickly that testing facilities could not keep up. According to the attorney general’s office, former employees described samples as being “stuffed in trash bags and scattered across the office floor.”

Attorney General Keith Ellison stated in a statement that he is holding the companies responsible for sending back inaccurate or false results.

The Center for COVID Control, which is part of the U.S. Department of Health and Human Services, is being investigated by the Illinois Attorney General’s Office and the Oregon Department of Justice.

Numerous agencies warn consumers to be cautious of unregulated testing companies and rapid tests that are not authorized by the Food and Drug Administration. Scammers have also been attracted to the COVID-19 market by the increased demand for COVID-19 tests due to international travel regulations and Omicron variant spread.