Department of Justice: Two Foreign Nationals Indicted in Chicago as Part of $10M Health Care Fraud Scheme

WASHINGTON, Feb. 13 -- The U.S. Department of Justice issued the following news release:

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Two Foreign Nationals Indicted in Chicago as Part of $10M Health Care Fraud Scheme

Two foreign nationals participated in a $10 million scheme to fraudulently bill Medicare and private insurers for nonexistent health care services, according to an indictment returned in federal court in Chicago.

In 2023 and 2024, Burhan Mirza and Kashif Iqbal, along with several co-schemers, used nominee-owned laboratories and durable medical equipment providers to submit fraudulent claims to Medicare and private health care benefit programs for items and services that were not provided, the indictment states. Mirza, 31, is a Pakistani native who resided in Pakistan and obtained the identifying information of individuals, providers, and insurers without their knowledge and used the information to support the bogus claims submitted on behalf of the nominee-owned companies, the indictment states. Iqbal, 48, is a Pakistani native who resided in Lavon, Texas, and was allegedly associated with a number of durable medical equipment providers that submitted fraudulent claims to insurers. Iqbal also laundered fraud proceeds obtained by the co-schemers and coordinated the transfer of money obtained through the scheme to Pakistan, the indictment states.

"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 Deputy Attorney General Todd 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. "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."

"Each fraudulent claim submitted by the defendants deprived other deserving patients from necessary medical resources and cost taxpayers their hard-earned money," said Special Agent in Charge Douglas S. DePodesta of the FBI Chicago Field Office. "The FBI, along with our network of investigative and prosecutorial partners, will bring to justice those who engage in egregious fraudulent schemes at the expense of the American public."

"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 Special Agent in Charge Mario Pinto of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "These actions not only siphon funds from federal health care 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."

The indictment charges Mirza with 12 counts of health care fraud and five counts of money laundering. Iqbal is charged with 12 counts of health care fraud, six counts of money laundering, and one count of making a false statement to U.S. law enforcement. Arraignments in federal court in Chicago have not yet been scheduled.

Three alleged co-schemers were previously indicted as part of this investigation and have pleaded guilty to federal health care fraud charges. 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. 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. Khan, Syed, and Rasheed are awaiting sentencing.

Assistant U.S. Attorney Brian Hayes for the Northern District of Illinois is prosecuting the case.

An indictment merely contains accusations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Original text here: https://www.justice.gov/opa/pr/two-foreign-nationals-indicted-chicago-part-10m-health-care-fraud-scheme