$1M Medicare Fraud Scheme Nets 2-Year Prison Term for Lab Owner

Mohammed Asif, a 35-year-old Indian national and owner of American Labworks LLC in Everett, has been sentenced to two years in federal prison for orchestrating a Medicare fraud scheme that defrauded taxpayers of over $1 million. The fraud involved submitting false Medicare claims for COVID-19 and other respiratory illness tests that were never performed, resulting in American Labworks billing Medicare more than $8.7 million from April to December 2024. Investigations revealed multiple irregularities, including billing for tests on deceased Medicare beneficiaries. Asif was arrested attempting to leave the country and has been ordered to pay $1,174,813 in restitution. The case highlights ongoing challenges in Medicare fraud detection and the importance of regulatory oversight in healthcare claims processing. Additional individuals involved in the scheme are under investigation, reflecting broader efforts to combat fraudulent activities in the health insurance sector. The case underscores the potential vulnerabilities within payer-provider interactions and the critical need for compliance frameworks to safeguard public funds against sophisticated fraud schemes.