NAPERVILLE, Ill. — Two brothers from Naperville, Illinois, are facing federal charges for allegedly orchestrating a massive health care fraud scheme that exploited the COVID-19 pandemic to siphon nearly $300 million from government programs. Prosecutors say the illicit funds financed luxury cars, gold bars, and overseas real estate investments.
Minhaj Feroz Muhammad, 37, and Sufyan Feroze, 35, were named in a superseding indictment unsealed yesterday. Court documents allege the pair submitted approximately $293 million in fraudulent claims to Medicare, Medicaid, and private insurers through four clinical laboratories they controlled in Illinois and California. Ownership was sometimes hidden using “straw” buyers.
Despite the labs failing to provide the services billed, insurers allegedly paid out roughly $65 million in reimbursements. Investigators say the brothers laundered the money through their businesses before using it to purchase tangible assets, including luxury vehicles, high-end watches, gold bars, and overseas property.
“These defendants are charged with a brazen scheme to steal nearly $300 million from vital health care programs by taking advantage of the fear and panic of the COVID-19 pandemic,” said Acting Assistant Attorney General Matthew R. Galeotti. FBI Special Agent in Charge Douglas S. DePodesta added that health care fraud directly impacts taxpayers and contributes to rising insurance premiums.
Both men are charged with six counts of health care fraud and one count of money laundering conspiracy. Sufyan Feroze faces an additional count for engaging in a monetary transaction with criminally derived property exceeding $10,000. Each health care fraud count carries a maximum sentence of 10 years, while the money laundering conspiracy charge carries up to 20 years.
The investigation was conducted by the FBI and the Department of Health and Human Services Office of Inspector General (HHS-OIG).
