Indian national Syed Murtuza Kablazada, living in Illinois, admits role in $227 million Medicare COVID fraud; medical data bought from Pakistan

An Indian national living in Des Plaines, Illinois, has pleaded guilty to his role in a $227 million Medicare fraud scheme. Personal information of hundreds of thousands of Medicare beneficiaries was used to submit false claims for COVID-19 test kits that were never requested or delivered, the US Department of Justice (DOJ) announced.

Illinois resident Syed Murtuza Kablazada used stolen Medicare beneficiary data to bill for COVID-19 test kits that were never requested or delivered. (Unsplash)According to the DOJ, Syed Murtuza Kablazada, 36, admitted that he participated in the healthcare fraud scheme, which generated approximately $136 million in Medicare payments through fraudulent claims.

Prosecutors said that the operation relied on personally identifiable information purchased from a company based in Pakistan. Kablazada pleaded guilty to two counts of healthcare fraud in federal court. He is expected to be sentenced at a later date and faces a maximum sentence of 20 years in prison.

According to court documents, the fraud scheme operated for about six months beginning in January 2023. During that period, Kablazada and his alleged co-conspirators acquired three Chicago-area laboratories. These were Chicago Care, V Care and Al-Ameer.

Prosecutors have said they were used to submit fraudulent Medicare claims. The DOJ said Kablazada paid approximately $11 million to a telemarketing company based in Pakistan. Prosecutors alleged the company provided personally identifiable information belonging to hundreds of thousands of Medicare beneficiaries.

The data allegedly included information needed to submit Medicare reimbursement claims. Using those records, prosecutors said that the laboratories billed Medicare $227 million for over-the-counter COVID-19 test kits that beneficiaries neither ordered nor received.

Medicare ultimately paid about $136 million. Authorities alleged that Kablazada and others attempted to conceal their involvement by moving money overseas and using unlicensed money transmitters. Prosecutors also said part of the fraud proceeds was used to purchase luxury vehicles.

Kablazada agreed to forfeit more than $46 million that law enforcement had already seized from 10 bank accounts linked to the investigation as part of the plea agreement. The investigation was led by the FBI Chicago Field Office and the Department of Health and Human Services Office of Inspector General (HHS-OIG).

The case is being prosecuted by the Justice Department’s Fraud Division Health Care Fraud Section, with assistance from the US Attorney’s Office for the Northern District of Illinois. The department said it formally established a dedicated Fraud Division on April 7 to strengthen investigations involving fraud against federal benefit programmes.

According to the DOJ, the initiative also supports President Donald Trump’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, which targets fraud, waste and abuse in federal programs. The Justice Department noted that its Health Care Fraud Strike Force Program has charged more than 6,200 defendants since 2007.

Those cases collectively involved over $45 billion in fraudulent billings submitted to federal healthcare programs. Kablazada remains subject to sentencing in federal court. Prosecutors have not announced a sentencing date.

Shirin Gupta is a content producer with the Hindustan Times. She covers everything between politics, entertainment and sports at the US desk. Shirin got interested in political journalism during her time as a web editor at her college newspaper NCC News in Syracuse when she first started seeing the effects of national politics in life of her fellow colleagues.

Shirin has worked on a wide range of fast-moving and developing stories locally when she was at NCC editing accessible reports for the audience. Her current role requires her to track real-time updates, verify information and present balanced coverage across diverse beats.

Covering US politics from an international newsroom perspective has further deepened her understanding of how domestic decisions can have far-reaching global consequences. With a keen interest in international affairs, Shirin continues to build her expertise in geopolitics, policy shifts, and cross-border developments.

She aims to learn and evolve her reporting in matters of geopolitics and international issues. Outside the newsroom Shirin writes about books and music for her personal blog. She is an avid consumer of pop culture and reveres literature.Read More