Illinois man pleads guilty in $227M Medicare COVID-test fraud scheme
Syed Murtuza Kablazada admits buying Medicare beneficiary data from a Pakistani firm to bill for test kits no one ordered.
What to know
- Kablazada admitted billing Medicare $227 million for COVID-19 test kits beneficiaries never requested, with Medicare actually paying out about $136 million.
- The scheme relied on personal data for hundreds of thousands of beneficiaries bought for about $11 million from a purported Pakistani telemarketing company.
- He agreed to forfeit more than $46 million already seized from ten bank accounts and faces up to 20 years in prison at sentencing.
- Co-defendant Syed Mehdi Hussain, indicted with Kablazada in May 2025, is not addressed in this guilty-plea announcement, leaving his case status unclear.
Syed Murtuza Kablazada Defendant, Indian national living in IllinoisSyed Mehdi Hussain Co-defendant indicted in May 2025Colin M. McDonald Assistant Attorney General, DOJ National Fraud Enforcement DivisionJ.D. Vance Vice President, chairs Task Force to Eliminate Fraud
How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts
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Details emerge on $11M Pakistani data purchase and forfeiture
ZeroHedge reported new details from the plea announcement: Kablazada paid about $11 million to a purported Pakistani telemarketing firm for beneficiary data, bought three Chicago-area labs starting January 2023, and agreed to forfeit more than $46 million seized from ten bank accounts.
“Syed Murtuza Kablazada, an Indian national residing in Des Plaines, Illinois, caused the submission of $227 million in false and fraudulent claims to Medicare for test kits that he knew were never requested by or shipped to the Medicare beneficiaries.”
— Department of Justice, Prosecuting agency · source -
1 outlet Indian National Pleads Guilty In $227 Million COVID Test Scam, Bought Data From Pakistani Firm
first by ZeroHedge, 4d ago
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- 3 days quiet
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Social media post amplifies guilty plea with deportation demand
A widely shared post on X summarized the plea and called for prison and deportation, drawing over 7,000 reposts/likes and hundreds of comments.
“🚨 IT'S OFFICIAL: An Indian national living in Illinois just pleaded GUILTY to ripping off Medicare for $227 MILLION, billing taxpayers for COVID test kits that seniors never asked for and never got Prison and deport!”
— @EricLDaugh -
🚨 IT'S OFFICIAL: An Indian national living in Illinois just pleaded GUILTY to ripping off Medicare for $227 MILLION, billing taxpayers for COVID test kits that seniors never asked for and never got Prison and deport! According to DOJ, Syed Murtuza Kablazada paid about $11
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background
Kablazada pleads guilty to two counts of health care fraud — Kablazada pleaded guilty to a scheme that billed Medicare $227 million for COVID-19 test kits that beneficiaries never ordered or received, of which Medicare paid about $136 million; he faces up to 20 years in prison.
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background
DOJ indicts Kablazada and Hussain over Medicare billing scheme — The Justice Department announced an indictment against Kablazada, then 34, and Syed Mehdi Hussain, 32, each facing four counts, alleging their Chicago-area labs billed Medicare for test kits beneficiaries never requested, including for deceased people, and used foreign nationals as nominee owners.