Two Pakistani nationals have been indicted in Chicago for allegedly masterminding a sprawling $10 million health care fraud scheme that bilked Medicare and private insurers through an elaborate network of shell companies with whimsical names like “Snazzy Sprocket” and “Peculiar Pengium.”
Burhan Mirza, 31, and Kashif Iqbal, 48, face multiple counts of health care fraud and money laundering for a scheme that prosecutors say involved submitting fraudulent claims for medical services never rendered, then funneling millions in illicit proceeds back to Pakistan.
“Rooting out fraud is a priority for this Justice Department, and these defendants allegedly billed millions of dollars from Medicare and laundered the proceeds to Pakistan,” said Deputy Attorney General Todd Blanche in a statement released by the Department of Justice.
Empty Offices, Fake Claims
According to the indictment, Mirza operated from Pakistan, where he ran a company called Nexus BPO Solution. He allegedly obtained unauthorized identifying information and used it to file bogus claims through nominee-owned laboratories and durable medical equipment (DME) providers. Iqbal, who resided in Lavon, Texas, allegedly managed DME providers and played a crucial role in laundering the proceeds and transferring money back to Pakistan.
The brazen nature of the fraud is striking. Between October 2023 and January 2024 alone, Medicare paid over $4 million to just one laboratory account based on false claims, investigators found.
U.S. Attorney Andrew S. Boutros for the Northern District of Illinois didn’t mince words about the scheme’s victims: “Every fraudulent submission in this case was a hand in the pocket of a senior citizen or disabled person who relies on Medicare to fund critically important care.”
A Web of Co-Conspirators
The case has already seen three co-conspirators plead guilty. Mir Akbar Khan, 57, of West Chicago, Illinois, managed nominees for the operation. Fasiur Rahman Syed, 47, a Chicago resident and Indian citizen, posed as an owner of fraudulent entities. Navaid Rasheed, 43, a Pakistani citizen living in Plano, Texas, tracked payments within the scheme.
What makes this case particularly concerning? It appears to be just one piece of a much larger puzzle. The $10 million scheme is reportedly part of multiple cases, including separate Kazakhstan-linked fraud operations that totaled over $1 billion in fraudulent Medicare claims, all using similar methods of stolen patient data and shell companies.
“This scheme was built on a foundation of lies — fraudulent claims for services that were never provided and a deliberate effort to funnel millions of dollars overseas,” said Special Agent in Charge Mario Pinto of HHS-OIG.
Charges and Deceptions
Mirza now faces 12 counts of health care fraud and 5 counts of money laundering. The charges against Iqbal are even more extensive: 12 counts of health care fraud, 6 counts of money laundering, and an additional count of making a false statement to U.S. law enforcement after allegedly lying about performing IT work that was billed as part of the scheme.
FBI Chicago Field Office Special Agent in Charge Douglas S. DePodesta emphasized the broader impact: “Each fraudulent claim submitted by the defendants deprived other deserving patients from necessary medical resources and cost taxpayers their hard-earned money.”
The case serves as a stark reminder that while healthcare fraud may appear as merely financial crimes on paper, the real victims are often the most vulnerable — elderly and disabled Americans who depend on Medicare for their essential care, now forced to compete for resources against phantom patients and nonexistent services.
