$227M Medicare fraud scheme involving Pakistani data firm ends in guilty plea
An Indian national and resident of Illinois pleaded guilty to two counts of healthcare fraud, stemming from a scheme to defraud Medicare of $227M, the U.S. Department of Justice (DOJ) announced on Friday.
Syed Murtuza Kablazada, 36, faces up to 20 years in prison for using Medicare beneficiary data—which the DOJ said was purchased from an unscrupulous broker in Pakistan—to then bill the federal government for COVID-19 testing kits that were never provided to patients.
According to authorities, the scheme lasted for six months, beginning in January 2023. Kablazada, who worked with co-conspirators, acquired three labs in the Chicago area, which then submitted the claims to Medicare for the fake COVID test results.
The DOJ added that the list of Medicare data that made the scam possible was purchased for $11 million. The trove contained personal information on patients, enough to make medical claims for reimbursement seem legitimate.
The labs associated with the scheme were Chicago Care, V Care and Al-Ameer.
Of the $227 million in medical claims submitted, the Centers for Medicare & Medicaid Services paid out roughly $136 million, prosecutors alleged.
To cover their tracks, Kablazada and his unnamed accomplices used overseas money transfers and unlicensed payment services to extract their share of the funds. The DOJ said this money was used, in part, to make luxury purchases for themselves, including fancy cars.
Assets seized
The Federal Bureau of Investigation’s Chicago Field Office and the U.S. Department of Health and Human Services’ Office of Inspector General were leading the investigation into the conspiracy.
It’s unclear when arrests were made.
As part of his guilty plea, Kablazada has agreed to forfeit $46 million from 10 bank accounts seized by law enforcement. The DOJ said the money stemmed from the fraudulent activity.
A hearing to decide Kablazada’s fate, including potential prison time and supervised release, has yet to be scheduled.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.