Court Orders Recovery of ₹9.8 Crore; Judge Slams Accused for “Misusing Funds Meant for Elderly Patients”
Washington/Seattle: A U.S. federal court has sentenced Mohammad Asif, a 35-year-old Indian national, to two years in prison for orchestrating a large-scale Medicare fraud scheme. Asif, who had originally moved to America on a student visa, used a Washington-based diagnostic facility, American Labworks LLC, to siphon off public health funds meant for senior and low-income patients.
Apart from the jail term, the court has ordered him to repay $1,174,813 (approximately ₹9.8 crore) — the amount Medicare paid out based on fraudulent claims filed by his lab.
₹67 Crore Worth of Bogus Test Claims Submitted
Federal investigators revealed that Asif and his associates submitted fraudulent COVID-19 and respiratory infection test claims worth more than $8 million (around ₹67 crore).
These claims were filed on behalf of patients who never visited the lab and without any doctor’s prescription.
Of this, Medicare unknowingly disbursed more than ₹9.8 crore before irregularities were detected.
During sentencing, Judge James Robert rebuked the accused, stating:
“These funds exist to support healthcare for the elderly and the poor. Misusing them for personal gain shows complete moral failure.”
200+ Complaints Exposed the Fraud — Bills Submitted Even After Patients Died
Between 2024 and 2025, Medicare received over 200 complaints from beneficiaries who were billed for tests they never underwent.
Doctors listed on many billing forms also confirmed they had no connection to either the patients or the lab.
One of the most shocking findings:
- Claims were filed even after patients — and in some cases the certifying physicians — had passed away.
- This triggered deeper investigation by federal authorities.
Lab Licence Expired, Company Shut — But Fraudulent Billing Continued
American Labworks was incorporated in October 2021 but shut down operations in March 2025.
However, records show that its testing licence expired in December 2023, months before a majority of the fraudulent claims were submitted.
Financial documents further revealed that Asif exercised full control over the laboratory’s bank accounts and withdrew $260,000 (around ₹2.17 crore) in May 2024 before travelling to India. Investigators believe this was fraud money.
Arrested at Chicago Airport While Trying to Exit the U.S.
Asif returned to the United States in March 2025, unaware that federal agencies were closely tracking him.
On April 10, he was arrested at Chicago O’Hare International Airport while allegedly attempting to leave the country.
A federal grand jury indicted him later in April, and he eventually pleaded guilty on September 4.
Deportation to India After Jail Term
U.S. officials confirmed that once Asif completes his sentence, he will be deported to India.
Investigators are still identifying additional co-conspirators, and more arrests are expected.
Officials Issue Strong Statements
U.S. Attorney Neil Floyd said:
“Asif stole more than a million dollars from Medicare — money that should have funded essential healthcare services. Fraud like this undermines public trust.”
FBI Seattle Special Agent in Charge W. Mike Herrington added:
“The lab generated claims worth tens of crores of rupees for tests that never occurred. This is an organised, systematic fraud operation.”
