EVERETT, WA — The owner of an Everett-based laboratory, Mohammed Asif, 34, has been charged with health care fraud and conspiracy to commit health care fraud after allegedly billing Medicare $8.7 million for COVID-19 and respiratory illness tests that were never performed or ordered.
According to federal prosecutors, Asif operated American Labworks, which submitted fraudulent claims to Medicare from April to December 2024. The scheme allegedly involved billing for tests that patients never requested or received—including from deceased individuals and using the names of doctors who were no longer living at the time of service.
Authorities say Medicare paid more than $1 million to the lab before the fraudulent activity was flagged. From June 2024 to March 2025, the program received over 200 complaints, with many enrollees reporting they were billed for tests they never underwent.
“For example, one Medicare beneficiary was billed $545 for COVID-19 tests in August 2023 and March 2024, despite never receiving testing on those dates,” the U.S. Attorney’s Office said in a statement.
Acting U.S. Attorney Teal Luthy Miller condemned the scheme: “Medicare provides critical funding for senior citizens’ health care needs, which makes this type of fraud all the more reprehensible.”
W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office, called the operation “an apparently illegitimate company” that defrauded taxpayers. “When we receive allegations such as these, the FBI and our partners will aggressively investigate,” he added.
Asif faces up to 10 years in prison and a $250,000 fine if convicted. Authorities continue to investigate the scope of the fraud and the involvement of any co-conspirators.
