Northern District of Illinois Defendants Charged for Nearly $2 Billion in Fraudulent Reimbursements
CHICAGO — Thirteen defendants in the Northern District of Illinois are facing federal criminal charges as part of the largest national health care fraud enforcement action in Department of Justice history–and the largest ever in the Northern District of Illinois. The Administration has identified health care fraud as a top priority for white-collar enforcement.
More than 320 defendants were charged nationwide for allegedly participating in various health care fraud schemes involving more than $14.6 billion in intended losses. The government seized more than $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the national enforcement effort. The takedown involved federal and state law enforcement agencies across the country and represented an unprecedented effort to combat health care fraud schemes that exploit both patients and taxpayers.
In the Northern District of Illinois, the 13 defendants are charged with various crimes related to health care, with some allegedly participating in fraud schemes involving more than $1.83 billion billed to government programs and private health insurers. The fraud schemes caused the Department of Health and Human Services’ Health Resources and Services Administration (HRSA), Medicare, and other insurers to pay more than $865 million in fraudulent reimbursements.
The nationwide takedown was led and coordinated by the Health Care Fraud Unit of the Department of Justice Criminal Division’s Fraud Section and its core partners from U.S. Attorneys’ Offices, the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and the Drug Enforcement Administration (DEA). The cases were investigated by agents from HHS-OIG, FBI, DEA, the U.S. Food and Drug Administration Office of Criminal Investigations, and other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 48 U.S. Attorneys’ Offices nationwide, and nine State Attorney Generals’ Offices.
“The U.S. Attorney’s Office for the Northern District of Illinois is proud to partner with the Department of Justice and multiple law enforcement agencies in the largest health care fraud takedown in our District’s history,” said Andrew S. Boutros, United States Attorney for the Northern District of Illinois. “Health care fraud is an insidious crime that siphons off hard-earned tax dollars meant to provide care for people of limited means as well as the vulnerable and disabled. It leads to increased health care costs, including higher insurance premiums and taxes, as well as potentially jeopardizing the quality and safety of treatment. At nearly $2 billion, the alleged combined fraud at issue in these cases is staggering. This type of criminal conduct not only undermines the very fabric of our health care system, but also can lead to mistrust between patient and health care provider, especially when the criminal conduct is committed by medical professionals in a position of trust. Our Office will continue to vigorously pursue those who seek to exploit these critically important health care programs by placing greed and profits above patient care.”
“This record-setting health care fraud takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake–this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”
The thirteen defendants in northern Illinois were charged in five cases filed in the Northern District of Illinois:
U.S. v. Charolia, et al
RUKNUDDIN “RICK” CHAROLIA, 43, AAMIR ALI ARIF, 32, SHEARYAR ARIF, 28, and FIZZA FARID, 29, all foreign citizens, were indicted for their alleged participation in a $700 million health care fraud scheme in which false and fraudulent claims were submitted to Medicare and Medicare Advantage plans for over-the-counter Covid-19 test kits, durable medical equipment products, and genetic tests that were not requested, not medically necessary, and/or not provided to the beneficiaries. As alleged in the indictment, Charolia and Aamir Ali Arif operated a call center in Pakistan called Hello International Marketing Solutions (“HIMS”), that obtained Medicare beneficiary information, including Medicare beneficiary identification numbers, through theft and deception. HIMS then purportedly contacted beneficiaries to obtain patient consent for the durable medical equipment products, Covid-19 test kits, and genetic tests, even though the products and services were often not requested or medically necessary. The purported consent for the Covid-19 test kits was sometimes even faked through artificial intelligence. Charolia, Aamir Ali Arif, Shearyar Arif, and Farid allegedly caused the durable medical equipment providers and laboratories to submit approximately $703 million in fraudulent claims for products and services that were not requested, not medically necessary, or not provided to beneficiaries, receiving at least approximately $418 million from Medicare and Medicare Advantage plans. Additionally, Charolia, Aamir Ali Arif, and FAIZAN SALEEM, 28, also a foreign national, were charged for their alleged participation in a conspiracy to defraud the United States and violate the Anti-Kickback Statute for their sale and distribution of Medicare beneficiary information, including Medicare BINs, to durable medical equipment providers and laboratories in the United States.
All five defendants were also charged with participating in a money laundering conspiracy in which fraud proceeds were transferred to various U.S. accounts controlled by the defendants in an effort to conceal the source, location, ownership, and control of the funds. The case is being prosecuted by Trial Attorneys Kelly M. Warner and Claire Sobczak Pacelli of the Midwest Strike Force, and Assistant U.S. Attorney Jasmina Vajzovic of the Northern District of Illinois.
U.S. v. Ahmed, et al
ANOSH AHMED, 41, formerly of Chicago and Houston, Texas, MOHAMED SIRAJUDEEN, 53, of Chicago, MAHMOOD SAMI KHAN, 36, of Houston, Texas, and SUHAIB AHMAD CHAUDHRY, 34, of Houston, Texas, were indicted for their roles in an alleged $894 million fraudulent Covid-19 testing scheme. As alleged in the indictment, Ahmed, Sirajudeen, and Khan caused clinical laboratories in Illinois and Texas to submit false and fraudulent claims to the U.S. government’s HRSA Covid-19 Uninsured Program seeking reimbursement in the amount of approximately $894 million for Covid-19 testing, of which approximately $293 million was paid.
According to the indictment, Ahmed was a physician who used patient information obtained from a variety of sources, including a patient list from a hospital where he previously worked, to generate false claims that were submitted through a laboratory in Illinois. Dr. Ahmed allegedly falsely represented that the identifiers were associated with uninsured individuals who had submitted biological samples for Covid-19 testing, knowing that the purported patients had not submitted any samples. Ahmed allegedly also submitted false claims through labs in Texas that he owned but which were not operational. According to the indictment, Ahmed, Sirajudeen, Khan, and Chaudhry then laundered the fraud proceeds through various bank accounts to conceal the origin of the funds. Ahmed and Khan were charged with wire fraud and, along with Chaudhry, with conspiracy to commit money laundering. Ahmed was also charged with conspiracy to pay and receive kickbacks, obtaining individually identifiable health information without authorization and for commercial advantage, and money laundering. Sirajudeen was charged with money laundering.
The government has seized approximately $100 million in assets in this matter. The case is being prosecuted by Assistant U.S. Attorneys Sheri Mecklenburg and Kelly Guzman of the Northern District of Illinois, and Trial Attorney Claire Sobczak Pacelli of the Midwest Strike Force.
U.S. v. Elkoussa
JAMIL ELKOUSSA, 35, of Orland Park, Ill., was charged with five counts of wire fraud in connection with a scheme to defraud the U.S. government’s HRSA Covid-19 Uninsured Program. As alleged in the indictment, Elkoussa operated Meridian Medical Staffing, which purported to collect samples for Covid-19 tests at numerous sites in Illinois and Florida. Elkoussa allegedly caused a laboratory to submit approximately $233 million in fraudulent claims to the HRSA Uninsured Program for Covid-19 test specimens purportedly collected from patients, even though he knew that such test specimens had not been collected from the purported patients, and many of those patients did not exist. According to the indictment, Elkoussa’s fraudulent conduct resulted in approximately $154 million in HRSA payments to the laboratory, for which Elkoussa received more than $60 million.
Approximately $6 million in assets have been seized in this matter. The case is being prosecuted by Trial Attorney Claire Sobczak Pacelli of the Midwest Strike Force and Assistant U.S. Attorney Kelly Guzman of the Northern District of Illinois.
U.S. v. Muhammad, et al
MINHAJ FEROZ MUHAMMAD, 37, and SUFYAN FEROZE, 34, both of Naperville, Ill., were charged in connection with their involvement with FZ Medical Inc., d/b/a Next Labs Inc., which allegedly submitted more than $72 million in false and fraudulent claims to Medicare and Blue Cross Blue Shield of Illinois for Covid-19 laboratory testing services that were not provided to insureds. According to the indictment, the lab was paid more than $9.7 million for these claims. The case is being prosecuted by Trial Attorney Kelly M. Warner, with substantial assistance by former Trial Attorney Victor B. Yanz of the Midwest Strike Force.
U.S. v. Farley
CHER FARLEY, 52, of Earlville, Ill., was charged in connection with her acquisition of foreign-sourced drugs labeled as Botox and Sotox, and the subsequent dispensing of those drugs without a prescription. As alleged in a criminal information, Farley caused foreign-sourced Botox and Sotox without proper labeling to be introduced into interstate commerce from China and dispensed without a prescription to multiple victims. The case is being prosecuted by Assistant U.S. Attorney Erin Kelly of the Northern District of Illinois.
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The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force, which works in partnership with U.S. Attorney’s Offices nationwide. Prior to the charges announced as part of today’s nationwide takedown and since its inception in March 2007, the Health Care Fraud Strike Force, which operates in 27 districts, charged more than 5,400 defendants who collectively billed Medicare, Medicaid, and private health insurers more than $27 billion.
The public is reminded that charges are merely allegations, and all defendants are presumed innocent until proven guilty.