CHICAGO — Two Pakistani nationals have been indicted in federal court in Chicago for their alleged roles in a $10 million scheme to defraud Medicare and private insurers by billing for health care services that were never provided, authorities announced Friday.
A federal grand jury charged Burhan Mirza, 31, a Pakistani national who resided in Pakistan, and Kashif Iqbal, 48, a Pakistani national who lived in Lavon, Texas, with multiple counts of health care fraud and money laundering.
According to the indictment, Mirza, Iqbal and several co-conspirators used nominee-owned laboratories and durable medical equipment companies in 2023 and 2024 to submit fraudulent claims to Medicare and private health benefit programs for nonexistent items and services.
Prosecutors allege that Mirza obtained identifying information for patients, health care providers and insurers without their knowledge and used the data to support fraudulent claims submitted through the shell companies. Iqbal allegedly was affiliated with several durable medical equipment providers that billed insurers for the bogus services.
Iqbal is also accused of laundering proceeds from the scheme and coordinating the transfer of funds to Pakistan.
Deputy Attorney General Todd Blanche said the defendants allegedly diverted taxpayer-funded health care dollars for personal gain.
“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,” Blanche said in a statement.
U.S. Attorney Andrew S. Boutros for the Northern District of Illinois said the fraud harmed both taxpayers and patients.
“The defendants didn’t just steal from a government program; they stole from taxpayers who fund the promise of healthcare in this country,” Boutros said, adding that his office’s newly established Healthcare Fraud Section will continue targeting similar schemes.
The indictment charges Mirza with 12 counts of health care fraud and five counts of money laundering. Iqbal faces 12 counts of health care fraud, six counts of money laundering and one count of making a false statement to federal law enforcement. Arraignment dates have not yet been scheduled.
Three additional defendants were previously charged in connection with the investigation and have pleaded guilty to federal health care fraud offenses.
Mir Akbar Khan, 57, of West Chicago, Illinois, admitted recruiting and managing individuals — including Fasiur Rahman Syed, 47, an Indian citizen who lived in Chicago — to serve as nominee owners of the purported medical businesses used to submit fraudulent claims. Navaid Rasheed, 43, a Pakistani citizen who lived in Plano, Texas, admitted tracking fraudulent claim payments and helping distribute proceeds to co-conspirators. All three are awaiting sentencing.
An indictment contains allegations only. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
