West Chicago Man Charged in $10 Million Health Care Fraud Scheme

Federal authorities have indicted a West Chicago man in connection with an elaborate $10 million healthcare fraud scheme that targeted Medicare, the federal health insurance program primarily serving elderly and disabled Americans.

According to prosecutors, the accused participated in a sophisticated operation that involved recruiting individuals to pose as owners of medical businesses, including durable medical equipment providers and laboratories. These shell companies were then allegedly used to submit fraudulent claims to Medicare.

The scheme, which operated throughout 2023 and 2024, involved multiple co-conspirators across different states and countries. Kashif Iqbal, 48, from Texas, and Burhan Mirza, 31, from Pakistan, are accused of using these fraudulent businesses to file false Medicare claims, while Navaid Rasheed, 43, also from Texas, allegedly tracked payments and managed the distribution of proceeds among the conspirators.

Federal charges against Iqbal include one count of making a false statement to U.S. law enforcement, six counts of money laundering, and 12 counts of healthcare fraud. Mirza faces five counts of money laundering and 12 counts of healthcare fraud. The West Chicago man, whose sentencing is still pending, was implicated as part of the same operation.

“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 following the indictments.

Healthcare fraud continues to be a significant concern for federal law enforcement, with the Medicare program being a frequent target. Such schemes not only divert critical resources from legitimate healthcare needs but also place an additional burden on taxpayers who fund these federal programs.

The case highlights ongoing vulnerabilities in the Medicare system, which processes millions of claims annually. Durable medical equipment fraud has been particularly problematic for Medicare, as these items—which can include wheelchairs, walkers, and other assistive devices—often involve minimal documentation requirements and substantial reimbursement rates, making them attractive targets for fraudsters.

“These alleged criminals stole from a program designed to provide health care benefits to American seniors and the disabled, not line the pockets of foreign fraudsters,” Blanche emphasized. “We will not tolerate these schemes that divert taxpayer dollars to criminals.”

The international dimension of this case, with money allegedly being laundered to Pakistan, demonstrates the increasingly global nature of healthcare fraud operations. Such cross-border schemes present additional challenges for investigators, requiring coordination between multiple law enforcement agencies and international cooperation.

Medicare fraud has been estimated to cost American taxpayers billions of dollars annually. The U.S. Department of Justice has intensified efforts to combat such fraud through various initiatives, including the Medicare Fraud Strike Force, which coordinates law enforcement actions across federal, state, and local agencies.

The indictments come amid broader government efforts to safeguard healthcare programs from abuse. In recent years, federal authorities have implemented enhanced screening procedures for providers, improved data analytics to detect suspicious billing patterns, and increased penalties for healthcare fraud offenses.

Court dates for the accused have not yet been announced, and as with all criminal cases, the defendants are presumed innocent until proven guilty in a court of law.