Federal prosecutors in Chicago have recently filed charges against multiple foreign nationals for their involvement in elaborate Medicare and health insurance fraud schemes. These schemes resulted in more than $1 billion in losses for government programs and private insurers due to fraudulent claims for medical equipment and diagnostic tests that were never provided to patients.
One of the individuals charged is Anuar Abdrakhmanov, a Kazakhstan national, who is accused of conspiracy to commit money laundering in connection with Medicare fraud operations. Abdrakhmanov allegedly took control of a legitimate Kentucky-based durable medical equipment company called Priority One Medical Equipment and used it to submit approximately $666 million in fraudulent Medicare claims for continuous glucose monitors and catheters between March and August 2024.
According to court documents, Abdrakhmanov entered the United States on a summer work visa that expired in September 2023 but continued to reside in the country. He became a member and manager of Priority One in April 2024 after the company was sold by its previous owner. Investigators received numerous complaints from Medicare beneficiaries who claimed they never received any items or services from Priority One, including six beneficiaries in Illinois who denied requesting or receiving diabetic supplies from the company.
Surveillance of Priority One’s Kentucky office revealed that the business appeared closed and empty, with employees hired only to collect mail and send it via an encrypted messaging app to a supervisor they never met in person. Despite Medicare suspending payments to Priority One, supplemental Medigap insurers paid out at least $450,000 in claims. Abdrakhmanov allegedly wired funds to foreign accounts and deposited checks from Medigap insurers into a Priority One bank account.
In a separate case, Tair Smagul, another Kazakhstan national living in the Chicago area, is accused of conspiring to launder money derived from a Medicare fraud scheme linked to Medical Home Care Inc., a Connecticut-based Medicare-approved supplier. Smagul allegedly controlled the company and participated in a nationwide scheme that billed Medicare and Medigap insurers for catheters that were not medically necessary and often never delivered. Medical Home Care submitted approximately $953 million in fraudulent billings for catheters between May 2023 and June 2024.
Investigators interviewed Medicare beneficiaries who were listed as receiving catheters from Medical Home Care, and all denied receiving the items. Financial records show that Medigap insurers paid at least $854,080 in fraudulent claims to the company. Smagul allegedly made ATM withdrawals of fraud proceeds in Illinois and deposited a check with fraud proceeds into his personal account.
In a third case, prosecutors charged Burhan Mirza and Kashif Iqbal, both natives of Pakistan, with orchestrating a scheme that defrauded Medicare and other health care programs of over $10 million through false claims for diagnostic tests and durable medical equipment. Mirza operated a business in Pakistan, while Iqbal resided in Texas. The defendants allegedly caused Medicare to pay more than $4 million to a laboratory account based on false claims and funneled additional payments through shell companies.
Mirza and Iqbal face charges of health care fraud and conspiracy to commit money laundering. Iqbal is also charged with making false statements to federal investigators regarding his involvement in the fraud scheme.
These cases highlight the significant impact of Medicare and health insurance fraud schemes on government programs and private insurers. The charges against these foreign nationals demonstrate the ongoing efforts to combat fraud and protect the integrity of healthcare programs in the United States.
