Daijiworld Media Network - Washington
Washington, Feb 12: Two Pakistani nationals have been indicted in Chicago for their alleged involvement in a $10 million healthcare fraud scheme that prosecutors say defrauded Medicare and private insurance providers, with funds allegedly routed overseas.
According to federal prosecutors, Burhan Mirza, 31, and Kashif Iqbal, 48, along with other co-conspirators, operated nominee-owned laboratories and durable medical equipment (DME) companies during 2023 and 2024. These entities allegedly submitted fraudulent claims for medical services and equipment that were never provided.
The indictment describes Mirza as a Pakistani national residing in Pakistan who allegedly obtained personal and insurance information of individuals, healthcare providers, and insurers without their knowledge. Prosecutors claim this information was used to file bogus reimbursement claims through the shell companies.
Iqbal, also identified as a Pakistani national, was residing in Lavon, Texas, and was allegedly linked to multiple DME providers involved in the scheme. Authorities allege that he laundered proceeds generated from the fraudulent claims and coordinated the transfer of funds to Pakistan.
Deputy Attorney General Todd Blanche said the accused exploited a system meant to serve vulnerable Americans. “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 schemes that divert taxpayer dollars to criminals,” he stated.
US Attorney Andrew S. Boutros for the Northern District of Illinois said the fraud directly impacted beneficiaries who depend on Medicare. “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,” he said, adding that the scheme also betrayed taxpayers who finance the healthcare system.
Mirza has been charged 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 federal law enforcement authorities. Court dates for their arraignments have not yet been set.
Three other alleged co-conspirators — Mir Akbar Khan, Fasiur Rahman Syed, and Navaid Rasheed — were previously indicted in the case. They have pleaded guilty to federal healthcare fraud charges and are currently awaiting sentencing.