From Chicago to Kazakhstan: Million-dollar trail of Medicare fraud
Federal prosecutors in Chicago have charged several Kazakhstan nationals in connection with large-scale fraud schemes targeting Medicare and private insurers, causing losses exceeding one billion dollars, according to court filings, reports a Qazinform News Agency correspondent.
One of the cases involves Anuar Abdrakhmanov, a citizen of Kazakhstan, who is accused of conspiracy to commit money laundering tied to Medicare fraud. Prosecutors allege that Abdrakhmanov took control of Priority One Medical Equipment and used the firm to submit about $666 million in fraudulent claims for glucose monitors and catheters between March and August 2024. Many beneficiaries later reported that they never requested or received the equipment and some said they did not suffer from diabetes.
Court documents state that the company’s listed office in Kentucky appeared empty and non-operational, while employees said their duties were limited to forwarding mail to an unidentified supervisor via Telegram. Although Medicare suspended payments in mid 2024, prosecutors say Medigap insurers paid at least $450 thousand, part of which was allegedly transferred to overseas accounts.
In a separate case, another Kazakhstan national, Tair Smagul, is accused of laundering proceeds from a large scale fraud scheme linked to Medical Home Care Inc.. Prosecutors allege that the company submitted nearly one billion dollars in fraudulent claims for catheter supplies, generating tens of thousands of complaints from Medicare beneficiaries.
According to federal prosecutors, Smagul lived in the Chicago area and allegedly controlled Medical Home Care Inc. from December 2023 through September 2024. Authorities claim he participated in a nationwide scheme that billed Medicare and Medigap insurers for catheters and other durable medical equipment that was either not medically necessary or never delivered. Court filings state that between May 2023 and June 2024 the company submitted about 470,000 claims totaling roughly $953 million, prompting approximately 27,377 beneficiary complaints.
Earlier, Qazinform News Agency reported that detectives from the New South Wales Organized Crime Squad charged two Kazakhstani citizens who allegedly obtained more than 1.17 million Australian dollars through fraudulent activities at a casino in Sydney.
