Syed Murtuza Kablazada pleaded guilty to two counts of health care fraud in a $227 million Medicare scheme, the U.S. Department of Justice said October 30. According to court documents and statements in court cited by the department, Kablazada and co-schemers acquired three Chicago-area laboratories and used personal information belonging to hundreds of thousands of Medicare beneficiaries to submit claims for over-the-counter COVID-19 test kits that beneficiaries had not requested or received. The information was obtained from a purported telemarketing company based in Pakistan. Medicare paid approximately $136 million on the claims, prosecutors said. Under his plea agreement, Kablazada agreed to forfeit more than $46 million seized from ten bank accounts. He faces a maximum 20-year prison term; the Justice Department said a federal judge will determine any sentence.

Why it matters

  • The case involved alleged misuse of beneficiary information to support false federal health-program claims.
  • The plea agreement includes forfeiture of more than $46 million seized from bank accounts.