Two Pakistani nationals were indicted in the United States for their alleged role in a $10 million healthcare fraud scheme that targeted Medicare and private insurance programmes, the Department of Justice (DOJ) said on Thursday.
According to a statement by the DOJ, Burhan Mirza, 31, and Kashif Iqbal, 48, along with several co-schemers, were accused of submitting fraudulent claims for medical services and equipment that were never provided.
The alleged scheme operated during 2023 and 2024 and involved nominee-owned laboratories and durable medical equipment providers, it said.
The DOJ added that three other alleged co-schemers had already pleaded guilty in the case: Mir Akbar Khan, 57, of West Chicago, who admitted recruiting nominee owners for the fake medical businesses; Fasiur Rahman Syed, 47, an Indian citizen who resided in Chicago; and Navaid Rasheed, 43, a Pakistani citizen who lived in Plano, Texas.
All three were awaiting sentencing, it said.
The statement quoted the indictment as saying that Mirza, a Pakistani national residing in Pakistan, allegedly obtained identifying information of individuals, healthcare providers and insurers without their knowledge. Mirza used this information to support false claims submitted to Medicare and private insurers on behalf of the nominee-owned companies, it said.
The indictment further said that Iqbal, also a Pakistani national, resided in Lavon, Texas, at the time of the alleged offences. It said he was associated with several durable medical equipment companies that submitted fraudulent claims to insurers. He was also accused of laundering the proceeds of the fraud and coordinating the transfer of funds from the US to Pakistan, it added.
“Rooting out fraud is a priority for this Justice Department,” Deputy Attorney General Todd Blanche was quoted as saying by the DOJ statement, adding that the defendants had allegedly stolen millions of dollars from a programme designed to provide healthcare to American seniors and people with disabilities. Northern District of Illinois Attorney Andrew S. Boutros said the alleged conduct went beyond financial loss to the government.
“The defendants didn’t just steal from a government programme; they stole from taxpayers who fund the promise of healthcare in this country,” he said.
The indictment charged Mirza with 12 counts of healthcare fraud and five counts of money laundering. Iqbal faces 12 counts of healthcare fraud, six counts of money laundering and one count of making a false statement to US law enforcement authorities. Arraignments have not yet been scheduled.