Fraudulent Scheme Targets Medicare, Indicts Two Pakistani Nationals

Two Pakistani nationals have been indicted by a federal court in Chicago for an alleged scheme to fraudulently obtain $10 million from Medicare and private insurance providers. The indictment, revealed this week, highlights accusations against Burhan Mirza, 31, and Kashif Iqbal, 48. According to the Department of Justice (DOJ), the fraudulent activities spanned across 2023 and 2024, involving nominee-owned medical laboratories and equipment companies submitting false claims to U.S. healthcare benefit programs.

Prosecutors allege that Mirza used unauthorized identifying information from individuals, healthcare providers, and insurers to facilitate fraudulent billing in the names of nominee-owned entities. Iqbal reportedly had ties to several medical equipment providers involved in generating false claims and allegedly moved illicit proceeds through money laundering, channeling funds from the U.S. to Pakistan. This scheme not only impacted regulatory compliance requirements, but it also compromised payer and provider trust within the industry.

Deputy Attorney General Todd Blanche and U.S. Attorney Andrew S. Boutros emphasized the Justice Department's dedication to combating fraud. They underscored the adverse effects on taxpayer-funded programs and the commitment of the office’s Healthcare Fraud Section to pursue similar fraudulent activities. Special agent Douglas S. DePodesta from the FBI’s Chicago Field Office remarked on the ramifications for risk management within public and private health care systems, noting the cost to taxpayers and deserving patients.