On Friday, U.S. federal prosecutors announced charges against 11 individuals involved in an extensive fraud scheme based in Russia, which aimed to defraud Medicare—the federal health insurance program for seniors and people with disabilities—of approximately $10.6 billion. The indictment, dated June 18, describes the group as a “transnational criminal organization” responsible for a sweeping healthcare fraud and money laundering operation.
According to the filing, the defendants acquired numerous previously legitimate medical equipment businesses and used them to submit fake claims for high-cost devices that were never delivered. In the process, they stole the personal data of over a million Medicare beneficiaries, using that information to generate billions of dollars in bogus claims to Medicare and private supplemental insurance providers.
Despite no medical devices being dispensed, Medicare ended up disbursing roughly $41 million based on these fraudulent claims, while supplemental insurers were estimated to have paid out an additional $900 million between 2022 and 2024.
Authorities identified Imam Nakhmatullaev as the scheme’s mastermind. Based in Russia, he allegedly oversaw operations carried out by co-conspirators located in Estonia, the Czech Republic, and the United States.
The fraud came to light after hundreds of thousands of Americans contacted Medicare and its contractors, alarmed by benefit statements that listed medical equipment they never ordered or received.
Investigators also revealed that the illicit proceeds were funneled through a network of shell companies into bank accounts in countries including Singapore, Pakistan, and Israel, with a portion of the money laundered through cryptocurrency transactions, as reported by The New York Times.
