Ontario, Canada’s Kyle Tsui ordered to forfeit $4M+

Kyle Tsui, 41, of Ontario, Canada owned the Allergy Testing Company. The company claimed to have a highly rated, top selling sensitivity and intolerance test that determines how a human body responds to 800 different food and environmental items with just a small hair sample.

What was Kyle Tsui’s crime?

From September 2018 through April 2019, Tsui orchestrated a scheme to defraud the Allergy Testing Company customers by purporting to sell food and environmental sensitivity testing services that he knew were not actually being performed. Through an online marketplace, he sold fabricated tests worth around $5.9 million in total to more than 88,000 victims.

After paying from $26 to $79 for various tests, the Allergy Testing Company customers received reports on substances to avoid and on foods and supplements that could improve their health. They were instructed to mail hair samples and test forms to Laboratory Group in Hyde Park, New York, United States.

Instead of actually testing the hair samples as the customers were promised, Tsui directed that the hair samples be discarded in the trash without any laboratory analysis. The fabricated test results the customers received claimed to identify certain foods and environmental factors that were safe for them and others that they were supposedly sensitive to and should avoid.   

In June 2019, a sealed complaint was filed against Tsui in U.S. District Court. In September 2023, he was found in Spain while he was vacationing with his family there.

On November 21, 2023, Tsui was extradited from Spain. On January 23, 2024, he pleaded guilty to wire fraud and mail fraud before U.S. Magistrate Judge Judith C. McCarthy.

On September 17, 2024, U.S. District Judge Kenneth M. Karas sentenced Tsui in federal court in White Plains, New York to 41 months in prison and one year of supervised release. The Allergy Testing Company owner was also ordered to forfeit $4,165,884.70.  

Before the sentencing, Tsui paid the amount in full. It may now be used to compensate victims of the fraud scheme.