Two Pakistani Nationals Charged in $10 Million Medicare Scheme Using Front-Owned Labs and Equipment Firms

Case from 2026 (U.S. Attorney's Office release: Feb. 12, 2026). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Two Pakistani natives have been indicted in federal court in Chicago for allegedly taking part in a $10 million scheme to bill Medicare and private insurers for health care items and services that were never provided, using laboratories and medical equipment companies set up in other people's names, the U.S. Attorney's Office for the Northern District of Illinois announced Feb. 12, 2026 [1]. Three alleged co-schemers had already pleaded guilty.

Important: Burhan Mirza and Kashif Iqbal are charged only and are presumed innocent unless and until proven guilty.

How the alleged scheme worked

According to the indictment as summarized by prosecutors [1]:

1. Front companies: In 2023 and 2024, Mirza, Iqbal and several co-schemers allegedly used laboratories and durable medical equipment (DME) providers held by "nominee" owners to submit claims for items and services that weren't provided.
2. Stolen identities: Mirza, who lived in Pakistan, allegedly obtained identifying information of individuals, providers and insurers without their knowledge to support the bogus claims.
3. Equipment firms and laundering: Iqbal, who lived in Lavon, Texas, was allegedly associated with several DME providers that filed fraudulent claims, laundered proceeds and coordinated sending the money to Pakistan.

The people charged

Burhan Mirza, 31, Pakistani native residing in Pakistan: 12 counts of health care fraud and five counts of money laundering [1].

Kashif Iqbal, 48, Pakistani native residing in Lavon, Texas: 12 counts of health care fraud, six counts of money laundering and one count of making a false statement to U.S. law enforcement [1].

Arraignments had not been scheduled when the indictment was announced. The case is prosecuted by Assistant U.S. Attorney Brian Hayes and was investigated by the FBI and HHS-OIG.

Co-schemers who pleaded guilty

According to the same release, three people previously indicted in the investigation pleaded guilty to federal health care fraud charges and were awaiting sentencing [1]:

• Mir Akbar Khan, 57, West Chicago, Ill.: recruited and managed people to pose as nominee owners of the medical businesses.
• Fasiur Rahman Syed, 47, an Indian citizen who lived in Chicago: one of the people recruited to pose as a nominee owner.
• Navaid Rasheed, 43, a Pakistani citizen who lived in Plano, Texas: admitted tracking payments on the false claims to the nominee-owned companies and the payout of proceeds to co-schemers.

Red flags

• Medicare Summary Notices showing lab tests or equipment (braces, monitors) you never ordered.
• Offers to pay you to put your name on a business you won't actually run. Nominee owners can face prosecution.
• Calls asking for your Medicare number in exchange for "free" tests or supplies.

What to do if you're targeted

1. Check your Medicare statements at medicare.gov and report unfamiliar charges.
2. Report suspected fraud to HHS-OIG at oig.hhs.gov/fraud/report-fraud or 1-800-HHS-TIPS.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Burhan Mirza, 31 (resides in Pakistan)	N.D. Ill.	Indicted (12 counts health care fraud, 5 counts money laundering); no later outcome found in public sources as of Oct. 16, 2026	[1]
Kashif Iqbal, 48, Lavon, Texas	N.D. Ill.	Indicted (12 counts health care fraud, 6 counts money laundering, 1 false statement); no later outcome found in public sources as of Oct. 16, 2026	[1]
Mir Akbar Khan, 57, West Chicago, Ill.	N.D. Ill.	Pleaded guilty to health care fraud; awaiting sentencing as of Feb. 2026; no sentence found as of Oct. 16, 2026	[1]
Fasiur Rahman Syed, 47, Chicago	N.D. Ill.	Pleaded guilty to health care fraud; awaiting sentencing as of Feb. 2026; no sentence found as of Oct. 16, 2026	[1]
Navaid Rasheed, 43, Plano, Texas	N.D. Ill.	Pleaded guilty to health care fraud; awaiting sentencing as of Feb. 2026; no sentence found as of Oct. 16, 2026	[1]

An indictment is an accusation, not evidence of guilt.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Two Foreign Nationals Indicted in Chicago as Part of $10 Million Health Care Fraud Scheme," Feb. 12, 2026. https://www.justice.gov/usao-ndil/pr/two-foreign-nationals-indicted-chicago-part-10-million-health-care-fraud-scheme
2. Indictment, United States v. Mirza et al. (N.D. Ill.). https://www.justice.gov/usao-ndil/media/1427566/dl?inline=

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