Two Pakistani nationals were indicted on Thursday for their roles in a Medicare fraud scam that took place in Chicago, Illinois. The duo allegedly billed “Medicare and private insurers” in excess of $10 million for “nonexistent healthcare services,” according to the Department of Justice.
Kashif Iqbal, Burhan Mirza, and several other unidentified participants “used nominee-owned laboratories and durable medical equipment providers to submit fraudulent claims to Medicare and private healthcare benefit programs for items and services not rendered. ” Mirza illegally collected private identifiable information from individuals and suppliers as part of the fraud. The Justice Department believes that he subsequently utilized this information to file false claims and receive cash. Meanwhile, Iqbal was “associated with a number of durable medical equipment providers that submitted fraudulent claims to insurers.”
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Mirza lived in Pakistan during these fraudulent operations, whereas Iqbal lived in Texas and laundered money “obtained through the scheme” to Pakistan, according to the Justice Department.
“The indictment charges Mirza, 31, with 12 counts of healthcare fraud and five counts of money laundering,” stated an announcement from the Department of Justice. “Iqbal, 48, has been charged with 12 counts of healthcare fraud, six counts of money laundering, and one count of making a false statement to US law enforcement.” “Arraignments in federal court in Chicago have yet to be scheduled.”
Deputy Attorney General Todd Blanche chastised the indicted Pakistani nationals for their fraudulent schemes, noting that their actions were disrespectful to millions of cash-strapped elderly and disabled Americans who rely on Medicare services.
“Rooting out fraud is a priority for this Justice Department, and these defendants allegedly billed millions of dollars from Medicare and laundered the proceeds to Pakistan,” said Blanche. “These alleged criminals stole from a program designed to provide health care benefits to American seniors and the disabled, not line the pockets of foreign fraudsters. We will not tolerate these schemes that divert taxpayer dollars to criminals.”
“Every fraudulent submission in this case was a hand in the pocket of a senior citizen or disabled person who relies on Medicare to fund critically important care,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois, who was one of the people who announced the indictment. “The defendants didn’t just steal from a government program; they stole from taxpayers who fund the promise of healthcare in this country. The newly established Healthcare Fraud Section in the Chicago U.S. Attorney’s Office will continue to work with our law enforcement partners to stop bad actors from draining public and private programs — especially those in the healthcare fraud space that would make it harder for legitimate patients to receive care.”
Three other participants in the conspiracy were indicted and pled guilty to federal health offenses, according to the Justice Department. Two of them were international citizens: one from India and one from Pakistan.
“Mir Akbar Khan, 57, of West Chicago, Illinois, recruited and managed individuals, including Fasiur Rahman Syed, 47, a citizen of India who resided in Chicago, to pose as the nominee owners of the purported medical businesses that Mirza and Iqbal used in their false submissions to Medicare,” said the Justice Department. “Navaid Rasheed, 43, a citizen of Pakistan who resided in Plano, Texas, admitted that he tracked payments of false claims in the United States to the nominee-owned companies, as well as disbursement of the fraud proceeds to the co-schemers.”
Mario Pinto, the special agent in charge of the Department of Health and Human Services’ Office of Inspector General, was harshly critical of the plot, criticizing the indicted for attempting to launder money overseas and steal from the country’s most vulnerable citizens.
“This scheme was built on a foundation of lies — fraudulent claims for services that were never provided and a deliberate effort to funnel millions of dollars overseas,” said Pinto. “These actions not only siphon funds from federal healthcare programs and private insurers but also undermine the integrity of programs meant to serve vulnerable patients. Our agency will continue to work with our law enforcement partners to dismantle these schemes and ensure those responsible are held accountable.”
