Former California Resident Charged in $90 Million Medicare Advantage Fraud Scheme

A foreign national has been charged with attempting to defraud Medicare Advantage programs of more than $90 million through an elaborate scheme involving thousands of false medical equipment claims, the Justice Department announced last week.

Anar Rustamov, 38, a citizen of Azerbaijan who previously resided in Sunnyvale, California, was indicted by a federal grand jury on healthcare fraud charges. According to prosecutors, Rustamov is suspected of having entered the United States illegally and currently remains at large.

The indictment alleges that between October 2024 and June 2025, Rustamov operated a company called Dublin Helping Hand that submitted thousands of fraudulent reimbursement claims to Medicare Advantage Organizations. The claims sought payment for medical equipment including blood glucose monitors and orthotic braces that were never provided to patients.

Federal investigators determined that the scheme targeted unsuspecting Medicare beneficiaries whose personal information was used without their knowledge. The medical providers listed as authorizing the equipment similarly had no involvement in prescribing the items, according to court documents.

“When the Administration declared a War on Fraud, it meant to target exactly this kind of conduct,” said Craig H. Missakian, U.S. Attorney for the Northern District of California, in a statement. “Rustamov participated in a scheme to steal nearly $100 million in taxpayer funds from a program intended to help those who truly need medical care.”

Healthcare fraud targeting Medicare programs has become increasingly sophisticated in recent years, with the Department of Health and Human Services estimating annual losses in the billions. The Medicare Advantage program, which allows private insurers to offer Medicare plans, has experienced particularly rapid growth, making it an attractive target for fraudsters.

This case represents one of the larger individual Medicare fraud schemes uncovered in California in recent years, highlighting ongoing vulnerabilities in the healthcare reimbursement system. Similar cases have emerged across the country, with federal authorities increasing resources dedicated to healthcare fraud prevention.

The Justice Department has prioritized healthcare fraud investigations under multiple administrations, creating specialized strike forces in high-risk regions. Medicare fraud schemes often exploit gaps in verification systems and the complexity of healthcare billing practices.

The indictment comes amid broader scrutiny of healthcare fraud in California, including recent investigations into hospice fraud in Los Angeles County. These schemes typically exploit vulnerable patients and the complex bureaucracy of healthcare reimbursement systems.

If convicted, Rustamov faces severe penalties, including a maximum sentence of 20 years in federal prison and fines of up to $250,000 for each violation. Federal healthcare fraud prosecutions typically result in significant sentences, especially in cases involving large-scale financial losses.

“Anyone who believes they can make easy money by defrauding such programs should know that we will continue to work with our law enforcement partners to identify, investigate, and prosecute such fraud and abuse,” Missakian added.

The case highlights ongoing challenges in safeguarding public healthcare funds and protecting patient information. Medicare Advantage enrollment has grown significantly in recent years, now covering approximately 31 million Americans, which has correspondingly increased the program’s vulnerability to fraud schemes.

Federal authorities continue to search for Rustamov, who is considered a fugitive from justice. The investigation involved coordination between multiple agencies, including the Department of Health and Human Services Office of Inspector General and the FBI.