US authorities have placed an Indian laboratory owner on their wanted list over an alleged $93 million, or roughly ₹889 crore, Medicare fraud involving genetic tests and the unauthorised use of doctors’ identities.
Khadeer Khan Mohammed, 46, owned American Premier Labs LLC in Richardson, Texas. Federal authorities allege that his laboratory submitted claims for genetic testing that was not properly ordered, requested or eligible for Medicare reimbursement.
Medicare allegedly paid at least $65 million, or roughly ₹621 crore, on the claims.
The US Department of Health and Human Services Office of Inspector General now lists Mohammed as a wanted fugitive and says his possible whereabouts are Hyderabad, India.
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Doctors’ identities allegedly used without their knowledge
The alleged scheme operated from around August 2023 to October 2024 in the Northern District of Texas and elsewhere.
US prosecutors say Mohammed used the personal identifying information of physicians without their knowledge or consent to submit genetic-testing claims involving Medicare beneficiaries.
The allegation is particularly serious because those doctors allegedly had no treatment relationship with the patients whose tests were being billed.
According to HHS-OIG, the physicians did not order the tests and the results were not used in treating those beneficiaries.
In other words, investigators allege that legitimate doctors’ identities were used to make questionable laboratory claims appear medically authorised.
Federal authorities say American Premier Labs submitted approximately $93 million in allegedly fraudulent claims.
Medicare paid at least $65 million, including approximately $13 million during a single 10-day period in 2023.
Investigators also seized nearly $6 million from bank accounts controlled by Mohammed.
Why genetic testing is attractive to Medicare fraud networks
Genetic testing can legitimately help doctors identify inherited disease risks or guide certain treatment decisions.
But many genetic tests are expensive, and Medicare does not simply reimburse every test performed on a beneficiary.
Medical necessity, proper physician involvement and coverage requirements matter.
That makes genetic testing attractive to fraud networks because a laboratory can potentially submit high-value claims if it has patient details and what appears to be a valid doctor’s order.
The problem becomes harder to detect when genuine physician identities are inserted into claims.
A Medicare system reviewing thousands of submissions may initially see the name of a real doctor and a real beneficiary, even though the physician never treated that patient or requested the test.
The Mohammed case is still an allegation, and he has not been convicted.
Federal authorities state that all defendants are presumed innocent unless proven guilty.
US has pursued several massive genetic-testing fraud cases
The Texas case is part of a much wider US crackdown on fraudulent genetic testing.
In 2023, laboratory owner Minal Patel was sentenced to 27 years in prison for a scheme involving more than $463 million in claims to Medicare for medically unnecessary genetic and other laboratory tests.
Medicare paid more than $187 million in that case. Prosecutors said telemedicine doctors often authorised expensive tests despite not treating or even speaking to the beneficiaries.
The similarities are striking.
Both cases involve expensive genetic testing and questions about whether the doctors named in the claims had genuine medical relationships with the patients.
In another major case concluded in May 2026, two men were sentenced over a scheme involving more than $522 million in fraudulent genetic-testing claims submitted to Medicare, Medicaid and private insurers.
A separate Texas jury in February convicted laboratory owner Keith J. Gray over a $328 million cardiovascular genetic-testing fraud scheme involving medically unnecessary tests and kickbacks to marketers.
The repeated cases show why genetic testing has become a major healthcare-fraud enforcement target in the United States.
Mohammed is now on federal fugitive list
Mohammed was originally charged by indictment as part of a broader US healthcare-fraud enforcement action.
The FBI’s Dallas Field Office and HHS-OIG investigated the case.
HHS-OIG has since elevated him to its public fugitive list.
The agency states that he is wanted for healthcare fraud and may currently be in Hyderabad.
That does not establish his guilt.
The indictment contains allegations that must still be proved in court, and there has been no conviction or sentence against him in this case.
If he is located outside the United States, any attempt to bring him before a US court could involve additional legal and diplomatic procedures.
For investigators, the financial evidence will remain central.
The alleged scheme produced tens of millions of dollars in Medicare payments in little more than a year, while the use of doctors’ identities raises a second concern beyond financial loss: medical records and professional identities can themselves become tools for large-scale fraud.
What this means for you: Doctors should regularly review claims associated with their provider identities, while patients should question unexpected genetic tests appearing in Medicare or insurance records. Unrecognised testing can be an early sign that personal or medical information has been misused.
The420 Insight: Healthcare fraud increasingly depends on stolen credibility as much as stolen money. A real doctor’s name, a real patient’s Medicare details and a functioning laboratory can make a false claim look legitimate enough to move millions of dollars before the pattern is detected.
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