Federal prosecutors in Chicago have filed charges accusing multiple foreign nationals of orchestrating elaborate Medicare and health insurance fraud schemes that bilked government programs and private insurers out of more than $1 billion through fraudulent claims for medical equipment and diagnostic tests that were never provided to patients.
In one complaint, federal prosecutors charged a Kazakhstan national with conspiracy to commit money laundering in connection with Medicare fraud operations.
Anuar Abdrakhmanov is charged with taking control of a legitimate Kentucky-based company called Priority One Medical Equipment and using it to submit approximately $666 million in fraudulent Medicare claims for continuous glucose monitors and catheters between March and August 2024.
According to the complaint, Abdrakhmanov entered the United States in May 2023 on a summer work visa that expired in September 2023, but continued residing in the country. Court documents indicate he became a member and manager of Priority One in April 2024 after the company was sold by its previous owner.
Investigators say Medicare received approximately 250 beneficiary complaints about Priority One between May and August 2024, with many beneficiaries reporting they never received items or services from the company. Six Medicare beneficiaries in Illinois who were allegedly provided continuous glucose monitors and catheters all denied requesting or receiving any diabetic supplies from Priority One and stated they did not even have diabetes, federal prosecutors claim.
When investigators conducted surveillance of Priority One’s Kentucky office in July 2024, they noticed the business appeared closed and empty. Employees hired to work at the location allegedly told investigators their only job was to collect mail and send it via the encrypted messaging app Telegram to a supervisor they never met in person.
Court records show an employee FedExed checks to addresses in suburban Chicago. One employee reportedly told investigators they once misplaced a $1 million check issued to Priority One and later received a $2,000 bonus upon locating it.
While Medicare suspended payments to Priority One in July 2024 before funds could be disbursed, supplemental Medigap insurers paid out at least $450,000 in claims, according to the complaint. Financial records allegedly show Abdrakhmanov then wired approximately $182,000 to accounts in Hong Kong and tried to wire more than $200,000 to other foreign accounts.
In August 2024, investigators allegedly saw Abdrakhmanov depositing approximately 30 checks from Medigap insurers totaling about $22,500 into a Priority One bank account.
Another Kazakhstan national charged
In a second case, prosecutors accuse Tair Smagul, a Kazakhstan national living in the Chicago area, of conspiring to launder money derived from a massive Medicare fraud tied to Medical Home Care Inc., a Connecticut-based Medicare-approved supplier.
The feds allege that from December 2023 through September 2024, Smagul controlled the company and participated in a nationwide scheme that billed Medicare and Medigap insurers for catheters and other equipment that was not medically necessary and often never delivered.
According to the complaint, Medical Home Care submitted approximately 470,000 claims totaling about $953 million in fraudulent billings for catheters between May 2023 and June 2024. Medicare received approximately 27,377 beneficiary complaints about the company during that period, prosecutors claim.
Investigators interviewed 19 Medicare beneficiaries, including five in Illinois, who were listed as having received catheters from the company. They all denied receiving the items. Three medical providers listed as prescribers of the catheters denied prescribing them and said the beneficiaries were not their patients, according to the allegations.
Financial records allegedly show Medigap insurers paid at least $854,080 in fraudulent claims to Medical Home Care between January and February 2024 when Smagul controlled the company. Investigators allege Smagul made multiple ATM withdrawals of fraud proceeds in Illinois and eventually closed out Medical Home Care’s bank accounts, depositing a check with fraud proceeds into his personal account.
Pakistan natives charged
In another case filed locally, prosecutors charged Burhan Mirza and Kashif Iqbal, both natives of Pakistan, with orchestrating a scheme that caused Medicare and other health care programs to pay out $10 million based on false claims.
According to the indictment, Mirza operated a business called Nexus BPO Solution in Pakistan, while Iqbal resided in Lavon, Texas. Prosecutors allege the men worked with numerous co-conspirators in the United States to submit fraudulent claims for diagnostic tests and durable medical equipment that were never actually provided to Medicare beneficiaries.
Prosecutors say Mirza obtained personal information of individuals, including Medicare identification numbers and dates of birth, for the purpose of submitting fraudulent claims without those individuals’ knowledge or authorization.
According to the allegations, between October 2023 and January 2024, the defendants caused Medicare to pay more than $4 million to one laboratory account based on false claims. Additional payments totaling millions more were allegedly funneled through various shell companies with names like Snazzy Sprocket, Peculiar Pengium, and Whimsy Wombat.
The indictment also includes a charge against Iqbal for making false statements to federal investigators, alleging he lied about performing IT work that was billed as part of the fraud scheme.
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