Federal prosecutors in the United States have charged several foreign nationals with running large-scale Medicare and health insurance fraud schemes that allegedly siphoned more than $1 billion by billing for medical equipment and tests that were never provided.
According to court filings, the accused exploited weaknesses in the Medicare system using stolen patient data, shell companies and fake claims for items such as glucose monitors, catheters and diagnostic tests.
Kentucky firm used for false Medicare claims
In the first case, prosecutors charged Anuar Abdrakhmanov, a citizen of Kazakhstan, with conspiracy to launder money linked to Medicare fraud. Investigators allege he took control of a legitimate medical supply firm, Priority One Medical Equipment in Kentucky, and used it to submit about $666 million in false Medicare claims between March and August 2024.
Medicare reportedly received around 250 complaints from patients who said they never received the equipment billed in their names. Authorities later found the company’s office empty, with workers claiming they were only instructed to collect mail and send photos via encrypted messaging apps.
Second scheme spanned multiple states
In a separate case, another Kazakhstan national, Tair Smagul, who lived in Chicago, has been accused of laundering money linked to a nationwide Medicare fraud operation. Prosecutors allege the scheme billed nearly $953 million for catheters that were often unnecessary or never delivered.
Medicare is said to have received over 27,000 complaints related to this operation, with patients and doctors denying any requests or prescriptions for the equipment.
Pakistani nationals charged in third case
In the third case, Pakistani nationals Burhan Mirza and Kashif Iqbal have been charged with orchestrating a $10 million fraud involving diagnostic tests and medical equipment. Prosecutors allege the operation used stolen patient information and routed funds through shell companies with fabricated identities. Iqbal is also accused of lying to federal investigators.
Authorities said investigations are ongoing, and additional charges may follow as they continue tracing money flows and identifying accomplices.