In a shocking revelation, Kyle Tsui, the President of the Allergy Testing Company, has admitted to orchestrating a major fraud scheme that victimized over 88,000 individuals. Tsui pleaded guilty to wire fraud and mail fraud, shedding light on a deceptive operation that promised accurate food and environmental sensitivity testing services but never delivered.
Tsui, a 41-year-old from Ontario, Canada, executed the elaborate scheme from September 2018 to April 2019. His company, under false pretenses, claimed to provide personalized testing services using small hair samples to determine an individual’s response to 800 different items. However, investigations revealed that these tests were never conducted. Instead, Tsui ordered the disposal of the hair samples without any analysis, while customers received entirely fabricated results.
U.S. Attorney Damian Williams, from the Southern District of New York, made the announcement today, highlighting the egregious nature of Tsui’s actions. Tsui’s extradition from Spain in November 2023 paved the way for his guilty plea before U.S. Magistrate Judge Judith C. McCarthy.
Williams emphasized, “Kyle Tsui defrauded tens of thousands of innocent victims, jeopardizing their health with false allergy and sensitivity testing results. His company lured customers with promises of ‘highly-rated’ services, only to discard their samples in the garbage without conducting any tests. Tsui now faces prison time for this brazen scam.”
The fraudulent scheme amassed approximately $5.9 million in sales from more than 88,000 victims. These unsuspecting customers were led to believe they were receiving personalized allergy and sensitivity information, but in reality, the results were entirely fictitious.
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In his guilty plea, Tsui admitted to one count of wire fraud and one count of mail fraud, with each count carrying a maximum sentence of 20 years in prison. As part of the plea agreement, he also agreed to forfeit $4,165,884.70. The actual sentencing is set to take place on May 30, 2024, before U.S. District Judge Kenneth M. Karas.
Williams acknowledged the outstanding efforts of the U.S. Postal Inspection Service in unraveling the complexities of this fraudulent operation. He expressed gratitude to multiple law enforcement agencies, including the Hyde Park Police Department, New York State Troopers, Toronto Police Service, the Department of Justice’s Office of International Affairs, and the Canadian Anti-Fraud Centre. A special acknowledgement was given to the Government of Spain for their cooperation in Tsui’s extradition.
Victims of the Allergy Testing Company fraud are urged to stay informed about the case and their rights. The victim witness coordinator is available for assistance, and updated case information can be accessed for their benefit.
The prosecution of this case falls under the purview of the Office’s White Plains Division, with Assistant U.S. Attorneys Qais Ghafary and Benjamin Levander leading the case. Former Assistant U.S. Attorney Daniel Loss initiated the groundwork for the case.
As this shocking fraud scheme comes to light, it serves as a stark reminder of the importance of consumer vigilance and the relentless pursuit of justice to hold individuals accountable for preying on innocent victims. The collaborative efforts of law enforcement agencies have played a crucial role in bringing this deceptive operation to an end.