A 35-year-old Indian national, Mohammed Asif, was sentenced to two years in federal prison in the United States for orchestrating a healthcare fraud scheme that siphoned over $1.17 million from Medicare, the government program assisting elderly and low-income patients. Asif ran a lab in Everett, Washington, now closed, where he and his accomplices submitted fraudulent claims for COVID-19 and respiratory tests that were never conducted or requested. In addition to his prison term, Asif must repay $1,174,813 in restitution and faces deportation after serving his sentence.

Asif founded American Labworks LLC in late 2021, presenting himself as the owner and director while on a student visa. Between April and December 2024, the lab filed more than $8.7 million in Medicare claims, pocketing over $1.1 million for services that never occurred—sometimes billing tests for patients who had died or for doctors who were long deceased. Complaints quickly mounted, with more than 200 reports between June 2024 and March 2025 from seniors disputing charges for tests they never received, including one $545 charge for a COVID swab.

Financial evidence played a key role in the case. Asif controlled the lab’s accounts, withdrawing $260,000 in May 2024 alone before fleeing to India. He returned to the US in March 2025 but was arrested at Chicago’s O’Hare Airport on April 10 while attempting to leave again. A grand jury indicted him shortly after, and he pleaded guilty to conspiracy in September.

US District Judge James L. Robart described the theft as a “significant amount” taken from funds intended for vulnerable populations and labeled Asif as morally corrupt, emphasizing the need to protect the public. Prosecutor Charles Neil Floyd highlighted that Medicare fraud is common, draining taxpayer money through schemes exploiting everything from pandemics to routine diagnostics. Investigators from the HHS Office of Inspector General and the FBI noted that such scams undermine public trust in healthcare and divert resources from genuine needs.

The case underscores a larger problem: Medicare loses billions annually to fraud, often through fake lab tests, echoing previous scams like orthotic brace and opioid fraud cases involving other Indian-origin individuals. For immigrants on student visas, Asif’s story serves as a cautionary tale—attempts to make quick money through illegal means can result in prison, restitution, and deportation. Vigilance, reporting suspicious charges, and supporting enforcement efforts are crucial to protect the program for those who depend on it most.