2 Central Asian nationals accused of billion-dollar fraud in the US

Federal prosecutors in Chicago have charged two citizens of Kazakhstan with organizing large-scale fraud schemes involving the Medicare program and medical insurance. According to investigators, their actions caused more than $1 billion in losses to government programs and private insurance companies. The information was reported by CWBChicago.

One of the defendants is Anvar Abdrakhmonov. He is accused of taking control of Priority One Medical Equipment, a company legally registered in the state of Kentucky, and using it to submit fraudulent claims under the Medicare program. According to the charges, from March to August 2024 the company submitted invoices totaling nearly $666 million for continuous glucose monitoring devices and catheters.

Court documents state that Abdrakhmonov entered the United States in May 2023 on a summer work visa. Although the visa expired in September of the same year, he allegedly remained in the country. In April 2024, after the company’s previous owner sold the business, Abdrakhmonov became a member and manager of Priority One.

From May to August 2024, Medicare received nearly 250 complaints related to Priority One. Many beneficiaries reported that they had not purchased any products or services from the company. Six Medicare recipients in Illinois told investigators that they had neither ordered nor received diabetes-related equipment, while some stated that they did not suffer from diabetes at all.

In July 2024, investigators who observed Priority One’s office in Kentucky noted that the premises appeared closed and vacant. Hired employees said their only task was to receive mail and forward it via the encrypted Telegram app to a supervisor they had never met in person. Court records indicate that checks sent via FedEx were redirected to addresses in the Chicago area. One employee reported losing a $1 million check issued to the company and later receiving a $2,000 reward after it was recovered.

Medicare suspended payments to Priority One in July 2024 before funds were disbursed. At the same time, investigators said Medigap insurance companies paid at least $450,000 on related claims. Financial records show that Abdrakhmonov transferred approximately $182,000 to accounts in Hong Kong and attempted to send more than $200,000 abroad. In August 2024, he also deposited 30 checks totaling nearly $22,500 into the Priority One account, received from Medigap insurers.

The second suspect in the case is Toir Smagul, a resident of the Chicago area. He is accused of conspiring to launder funds obtained through Medicare-related fraud. Investigators have linked him to Medical Home Care Inc., a company based in the state of Connecticut.

According to the prosecution, from December 2023 to September 2024 Smagul controlled the company and participated in a scheme to submit claims nationwide to Medicare and Medigap for medically unnecessary catheters and other medical equipment, which were often not delivered at all.

The indictment states that from May 2023 to June 2024, Medical Home Care submitted nearly 470,000 claims with a total value of approximately $953 million. During the same period, Medicare received more than 27,000 complaints from insured individuals.

Investigators questioned 19 Medicare beneficiaries, including five from Illinois, all of whom said they had not received any catheters. Three healthcare providers listed as having ordered the equipment stated that they had not placed such orders and that the individuals named were not their patients.

According to financial records, Medigap insurance organizations paid at least $854,000 in January and February 2024 on fraudulent claims submitted by Medical Home Care.

The investigation found that Smagul repeatedly withdrew cash from ATMs in Illinois, after which he closed the company’s bank accounts and transferred fraudulently obtained funds to his personal account via checks.