Indian-Origin Man Accused of $93 Million Medicare Genetic Testing Fraud in US

A Texas laboratory owner of Indian origin has been accused by United States authorities of orchestrating a large-scale healthcare fraud scheme involving approximately $93 million in fraudulent genetic testing claims. Investigators allege that the scheme caused the government-funded Medicare healthcare programme to pay at least $63 million, with a substantial portion of the payments being processed over a short period in 2023.

The accused has been identified as 46-year-old Khadeer Khan Mohammed, who reportedly owned American Premier Labs LLC in Richardson, Texas. According to federal allegations, the scheme was carried out between August 2023 and October 2024 in the Northern District of Texas and other locations. Mohammed allegedly used the laboratory to submit claims for genetic tests that did not qualify for Medicare reimbursement.

Authorities allege that many of the tests had not been ordered by authorised healthcare providers, were not medically justified or were not delivered in the manner represented in the claims. Investigators further alleged that the genetic testing services were sometimes submitted for Medicare beneficiaries who had no treatment relationship with the physicians whose details appeared on the paperwork.

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The US government has also accused Mohammed of using physicians’ identifying information without their knowledge or consent. The doctors’ details were allegedly used to file claims for genetic tests that they had neither prescribed nor authorised and that were not used as part of the beneficiaries’ medical treatment. The alleged misuse of medical professionals’ identities formed a key part of the fraud investigation.

The scale of the suspected operation became evident through the payments processed by Medicare. Authorities said the programme paid approximately $13 million in claims during a single 10-day period in 2023. Investigators also seized an estimated $6 million from bank accounts allegedly controlled by Mohammed as part of efforts to trace and recover proceeds linked to the scheme.

Mohammed has since been listed as a fugitive by US federal authorities, who believe he may be in Hyderabad, Telangana. His case remains pending, and no conviction or sentence has been announced. Under US law, he is presumed innocent unless the allegations are proven in court. The investigation remains focused on the fraudulent claims, the use of doctors’ identities and the movement of funds connected to the alleged operation.

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