Seattle Man Sentenced for $1M Medicare Fraud Scheme Involving Lab Testing

Mohammed Asif, an Indian national, was sentenced to two years in prison for orchestrating a Medicare fraud scheme that involved billing Medicare over $1 million for COVID-19 and other respiratory illness tests that were never ordered or performed. Asif operated American Labworks LLC, a diagnostic testing lab in Everett, Washington, which was active from 2021 to 2025. The lab billed Medicare more than $8.7 million between April and December 2024, receiving over $1.1 million in payments despite numerous complaints from beneficiaries who reported being billed for unreceived tests. Federal authorities, including the U.S. Attorney and the Health and Human Services Office of Inspector General, underscored the severity of the fraud, noting that the scheme siphoned taxpayer funds intended for vulnerable populations. Asif was arrested in April 2025 while attempting to leave the U.S. and pleaded guilty to conspiracy to commit healthcare fraud in September 2025. A grand jury had indicted him shortly before his arrest. The lab's operations ended after its license expired in December 2023, yet billing continued for several months into 2024. Financial records showed Asif controlled the lab's bank accounts and withdrew substantial amounts before traveling abroad and returning to the U.S. amid the investigation. He was ordered to pay restitution exceeding $1.17 million and faces potential deportation after serving his sentence. This case highlights ongoing challenges in combating healthcare fraud within Medicare, emphasizing the need for stringent regulatory oversight and compliance measures. It also demonstrates the vulnerability of government healthcare programs to fraudulent schemes involving complex lab testing claims. Continued enforcement and vigilant monitoring remain critical to protecting the integrity of Medicare and the interests of beneficiaries.