Two Illinois brothers face federal charges for allegedly orchestrating a $293 million COVID-19 testing fraud scheme that targeted Medicare, Medicaid, and private insurers.
Prosecutors unveiled a superseding indictment Thursday against Minhaj Feroz Muhammad, 37, and Sufyan Feroze, 35, both of Naperville, per a December 5 press release.
Officials say the defendants used the proceeds of fraud to purchase overseas luxury developments, gold bars, and high-end vehicles.
“These defendants are charged with a brazen scheme to steal nearly $300 million from vital health care programs by taking advantage of the fear and panic of the COVID-19 pandemic,” said Acting Assistant Attorney General Matthew R. Galeotti.
The brothers allegedly controlled four clinical laboratories in Illinois and California through straw owners.
Court documents reveal that the laboratories submitted fraudulent claims for COVID-19 testing services that were never actually performed. Insurers paid out at least $65 million before authorities uncovered the scheme.
Beyond health care fraud, prosecutors charged the brothers with conspiracy to commit money laundering. They allegedly transferred funds between laboratories and businesses they controlled to disguise the illegal origins.
Muhammad faces six counts of health care fraud and one count of money laundering conspiracy. Feroze faces those same charges plus an additional count for engaging in monetary transactions using criminally derived property exceeding $10,000.
Each health care fraud count carries a maximum of 10 years in prison. The money-laundering conspiracy charge could add 20 years, while Feroze’s additional charge could bring another potential decade behind bars.
The FBI and the Department of Health and Human Services Office of Inspector General led the investigation. The case exemplifies the Criminal Division’s Health Care Fraud Strike Force Program, which has charged over 5,800 defendants since 2007.
“Health care fraud affects everyone — it costs taxpayers millions of dollars, contributes to rising health insurance premiums, and depletes resources from our vital health care system,” said FBI Special Agent Douglas S. DePodesta. The charges remain allegations, with both defendants presumed innocent until proven guilty.
