A 46-year-old Indian-origin laboratory owner has been declared a federal fugitive in the United States after being accused of running a massive $93 million Medicare fraud scheme. US authorities allege that Khadeer Khan Mohammed, who owned a medical laboratory in Texas, submitted fraudulent claims for genetic testing and received tens of millions of dollars in Medicare payments.
Authorities believe Mohammed may currently be in Hyderabad, India, as the investigation into the alleged fraud continues.
How The Alleged Medicare Fraud Worked
According to US investigators, Mohammed operated American Premier Labs LLC in Richardson, Texas, and allegedly carried out the scheme between August 2023 and October 2024.
The laboratory is accused of submitting thousands of Medicare claims for genetic tests that were allegedly not medically necessary, were not ordered by authorised healthcare providers or were never performed.
The alleged fraudulent claims amounted to approximately $93 million. Medicare reportedly paid at least $65 million before the scheme was detected by authorities.
Doctors’ Identities Allegedly Misused
Investigators have also alleged that the scheme involved the unauthorised use of doctors’ identities.
According to the allegations, information belonging to several practising physicians was used to make the laboratory claims appear legitimate. Authorities say some of these doctors had no treatment relationship with the Medicare beneficiaries whose names appeared in the claims.
The alleged use of doctors’ information allowed the claims to be presented as legitimate medical services even though the genetic testing was allegedly not part of genuine patient care.
Millions Of Dollars Paid By Medicare
The scale of the alleged operation is one of the most significant aspects of the case.
Although the total fraudulent claims were estimated at around $93 million, Medicare is believed to have actually paid more than $65 million. Investigators have also reported that almost $13 million was paid within just 10 days during 2023.
US authorities have reportedly seized nearly $6 million from bank accounts connected to the investigation.
Suspect Believed To Be In Hyderabad
US authorities have declared Mohammed a fugitive and believe that he may currently be residing in Hyderabad.
The FBI and the US Department of Health and Human Services are continuing their investigation into the alleged Medicare fraud. Authorities are also examining financial transactions and other evidence connected to the laboratory and the people allegedly involved.
The case highlights the challenges faced by healthcare programmes in detecting fraudulent medical claims, particularly when sophisticated billing systems and stolen or misused identities are involved.
The allegations against Mohammed have not been established in court. The investigation remains ongoing, and further legal proceedings could determine the extent of his alleged involvement and the financial losses caused by the scheme.
Summary
An Indian-origin laboratory owner in the US has been declared a fugitive over an alleged $93 million Medicare fraud scheme involving genetic testing claims. Authorities say Medicare paid at least $65 million, while doctors’ identities were allegedly misused to support fraudulent claims. The suspect is believed to be in Hyderabad as US authorities continue their investigation.
