Indian National Sentenced to 2 Years for $1.17 Million Medicare Fraud Scheme Involving Fake COVID-19 Tests

Prosecutors revealed that Asif and his accomplices fraudulently billed Medicare for COVID-19 and respiratory testing services.

Washington:

An Indian citizen who confessed to conducting a multi-million dollar Medicare fraud scheme through a Washington-based laboratory has been sentenced to two years in federal prison, according to US Attorney Charles Neil Floyd.

Mohammed Asif, 35, who was arrested on April 10, 2025, at Chicago O'Hare International Airport while attempting to leave the country, must pay $1,174,813 in restitution. Following his prison term, he likely faces deportation from the United States.

On September 4, Asif pleaded guilty to conspiracy to commit health care fraud in connection with American Labworks LLC, a now-closed diagnostic testing facility in Everett, Washington.

During sentencing, US District Judge James L. Robart characterized the $1,174,813 fraud as "a significant amount of money. It was money that was siphoned out of the Medicare system, which is designed to treat the elderly and the poor... (The defendant) lacks moral character as a knowing participant in the fraud... He is someone the public needs to be protected from."

According to prosecutors, Asif and his co-conspirators submitted fraudulent Medicare bills for COVID-19 and respiratory tests that were neither requested nor performed. US Attorney Floyd stated, "Mr Asif participated in a scheme to steal more than a million dollars from Medicare -- funds that are meant to be used for important medical care."

He further noted, "Regrettably, schemes like this one are not unique. Medicare is a constant target of fraud, and the harm to the United States and taxpayers is substantial. We will continue to investigate and prosecute such fraud schemes."

Court documents show that American Labworks was established in October 2021 and dissolved in March 2025, according to Washington state records. Its Medical Test Site license expired in December 2023. Throughout this period, Asif was registered as the owner and director with both the state and Medicare.

Between April and December 2024, claims data reveals the laboratory billed Medicare over $8.7 million for diagnostic services and received more than $1.1 million in payments. Complaints quickly followed, with Medicare recording over 200 complaints about the lab between June 2024 and March 2025.

Many Medicare beneficiaries reported charges for tests they never received. One enrollee discovered Medicare had paid American Labworks $545 for COVID-19 tests allegedly performed in August 2023 and March 2024, despite never having been tested on those dates. Others stated they had no knowledge of the physicians listed as their referring providers. Several doctors whose names appeared in the laboratory's billing records informed investigators they had never referred patients to the facility.

Some records showed testing dates occurring after beneficiaries had died. Other claims listed referrals from physicians who were themselves deceased when the tests were supposedly ordered.

Financial evidence placed Asif at the center of the operation. Prosecutors stated he controlled the company's bank account, received multiple checks, and made large withdrawals. In May 2024 alone, he withdrew $260,000. Shortly afterward, Asif—who was living in the US on a student visa—departed for India. He returned in March 2025 just as investigators were concluding their investigation.

"Billing Medicare for millions of dollars' worth of laboratory testing that was never furnished is a serious offence that undermines the integrity of our healthcare system and diverts critical resources from those who truly need them," said Robb R. Breeden, Acting Special Agent in Charge of HHS-OIG.

FBI Seattle Special Agent in Charge W. Mike Herrington stated, "Like so many other fraudsters who take advantage of such situations, Mr Asif used the COVID-19 pandemic to steal from taxpayers for his own gain..."