Federal authorities in Chicago have uncovered a $10 million health care fraud scheme involving foreign nationals and several accomplices. The scheme targeted Medicare and private health insurance programs, billing for medical services and equipment that were never provided. The case highlights the scale of fraud that can affect programs designed to help seniors and disabled Americans.
How the Fraud Worked
The federal indictment states that Burhan Mirza and Kashif Iqbal, along with co-schemers, used nominee-owned laboratories and medical equipment providers to submit fake claims. The scheme claimed that patients received medical services and equipment, but in reality, no services were delivered.
Burhan Mirza, a Pakistani national living in Pakistan, allegedly obtained the identifying information of individuals, medical providers, and insurers without their knowledge. He then used this information to support false claims submitted through nominee-owned companies.
Kashif Iqbal, a Pakistani national residing in Lavon, Texas, was connected to multiple durable medical equipment providers. He is accused of submitting fraudulent claims and laundering the money obtained through the scheme, transferring it to Pakistan.
Other co-schemers played key roles in keeping the scheme operational. Mir Akbar Khan, of West Chicago, Illinois, recruited and managed people like Fasiur Rahman Syed, a citizen of India living in Chicago, to act as the fake owners of medical businesses. Navaid Rasheed, a Pakistani citizen living in Plano, Texas, tracked the fraudulent payments and helped distribute the proceeds among the schemers.
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Authorities emphasized that every fraudulent claim stole money from taxpayers and reduced funds available for legitimate patients who rely on Medicare for critical health care.
Legal Charges Filed
The indictment charges Burhan Mirza with 12 counts of health care fraud and five counts of money laundering. Kashif Iqbal faces 12 counts of health care fraud, six counts of money laundering, and one count of making false statements to federal law enforcement.
Three co-schemers — Khan, Syed, and Rasheed — had already been indicted earlier. They have pleaded guilty to federal health care fraud charges and are awaiting sentencing. These co-conspirators helped manage fake businesses, track payments, and ensure that the money from fraudulent claims was distributed among the group.
The prosecution is being handled by Assistant U.S. Attorney Brian Hayes for the Northern District of Illinois. Federal officials have stressed that this case is part of a broader effort to stop criminals from exploiting health care programs and defrauding taxpayers.
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Law Enforcement Response
Top law enforcement officials spoke about the seriousness of this case. Deputy Attorney General Todd Blanche said the defendants “allegedly billed millions from Medicare and laundered the proceeds to Pakistan,” noting that the fraud targeted programs meant to help seniors and disabled Americans.
U.S. Attorney Andrew S. Boutros said that “every fraudulent submission was a hand in the pocket of a senior citizen or disabled person.” He highlighted that the new Healthcare Fraud Section in the Chicago U.S. Attorney’s Office is actively working to stop fraud schemes that make it harder for legitimate patients to receive care.
FBI Special Agent in Charge Douglas S. DePodesta stated that the FBI, alongside investigative and prosecutorial partners, will bring to justice anyone engaging in large-scale health care fraud. HHS-OIG Special Agent in Charge Mario Pinto added that these fraudulent claims undermine programs designed to serve vulnerable patients and divert funds from legitimate medical care.
Arraignments for the new defendants have not yet been scheduled. All individuals charged in this case are presumed innocent until proven guilty in federal court.
This case demonstrates the scale and complexity of modern health care fraud and highlights the commitment of federal authorities to protect public funds and ensure that programs like Medicare continue to serve those who truly need them.