Indian-Origin Lab Owner Added to US Federal Fugitive List Over $93M Medicare Fraud Scheme

Indian-origin laboratory owner Khadeer Khan Mohammed. (Photo: HHS-OIG)

An Indian-origin laboratory owner has been placed on the US federal fugitive list after authorities accused him of engaging in a USD 93 million Medicare fraud scheme involving genetic testing. Khadeer Khan Mohammed, 46, allegedly used his Texas-based laboratory to submit fraudulent claims to Medicare, a US government-funded healthcare programme. Authorities allege that the scheme involved genetic tests that were not eligible for reimbursement, were not ordered by authorised doctors and were not used in patient care.

$93 million in claims, $65 million paid

According to the US Department of Health and Human Services Office of Inspector General (HHS-OIG), Mohammed owned American Premier Labs LLC in Richardson, Texas. Between August 2023 and October 2024, Mohammed allegedly submitted, or directed others to submit, around $93 million in fraudulent Medicare claims through the laboratory. Medicare paid at least $65 million on those claims, authorities said. In one 10-day period in 2023, Medicare allegedly paid about $13 million towards the claims.

Doctors' identities allegedly misused

A key part of the alleged scheme involved the use of physicians' personal identifying information without their knowledge or consent. According to HHS-OIG, claims were submitted for genetic tests for Medicare beneficiaries whose doctors had no treatment relationship with them. The physicians allegedly did not order the tests and the results were not used in treating the beneficiaries. Authorities allege the doctors' identities were used to make the laboratory claims appear medically authorised.

Mohammed may be in Hyderabad

US authorities have now listed Mohammed as a fugitive and said he may be in Hyderabad, India. The case was investigated by the FBI's Dallas Field Office and HHS-OIG. Prosecutors from the US Attorney's Office for the Northern District of Texas are handling the criminal case. Authorities have also reportedly seized nearly $6 million from bank accounts allegedly controlled by Mohammed. Anyone with information about his whereabouts has been asked to contact the HHS-OIG fugitive hotline at 888-476-4453 or submit a fugitive sighting report. The allegations against Mohammed have not been proven in court. The US authorities have reminded the public that defendants are presumed innocent unless proven guilty.