Federal prosecutors say a cross-border health care scam routed through Chicago and Texas helped siphon roughly $10 million from Medicare and private insurers by billing for medical services and equipment that never happened. A newly returned indictment accuses 31-year-old Burhan Mirza and 48-year-old Kashif Iqbal of orchestrating the scheme through 2023 and 2024, with Mirza allegedly directing operations from Pakistan while Iqbal worked in Texas and helped send money overseas.
According to the Justice Department, a federal grand jury in Chicago charged Mirza with 12 counts of health care fraud and five counts of money laundering. Iqbal faces 12 counts of health care fraud, six counts of money laundering, and one count of making a false statement to U.S. law enforcement. The indictment alleges the pair and several co-schemers used nominee-owned laboratories and durable medical equipment providers to submit bogus claims for items and services that were never provided. Three alleged co-schemers — Mir Akbar Khan of West Chicago, Fasiur Rahman Syed of Chicago, and Navaid Rasheed of Plano, Texas — have already pleaded guilty and are awaiting sentencing, the Justice Department said.
What prosecutors say
“Rooting out fraud is a priority for this Justice Department,” Deputy Attorney General Todd Blanche said, framing the case as part of a broader crackdown on health care rip-offs. U.S. Attorney Andrew S. Boutros called the alleged conduct a theft from programs that serve seniors and people with disabilities and pointed to his office’s newly established Healthcare Fraud Section as a sign of stepped-up enforcement, according to the Justice Department. Federal investigators from the FBI and HHS-OIG were listed as partners in the probe.
As first reported by Crain’s Chicago Business, the indictment lays out how overseas operators and U.S.-based nominees allegedly teamed up to exploit Medicare and private benefit programs. Crain’s coverage also surfaced the local ties and traced where some of the money and paperwork moved during the alleged operation.
How the alleged scheme worked
Prosecutors say the setup leaned on nominee-owned companies that pumped out thousands of claims for lab tests and durable medical equipment that investigators say were never actually performed or delivered. Mirza allegedly obtained identifying information for beneficiaries and providers to support those claims. Federal filings and reporting describe allegations that Iqbal managed relationships with the equipment suppliers and helped move funds overseas, a pattern detailed in legal reporting from Law360.
Wider enforcement context
Officials say the Chicago case is one piece of a much larger push. DOJ and HHS-OIG have increasingly targeted fraud involving durable medical equipment and diagnostic testing, recovering billions of dollars and rolling out major national takedowns in recent years. Analysis by Arnold & Porter notes the Fraud Section’s record-setting 2025 enforcement year and the government’s growing reliance on data analytics to spot suspicious billing spikes and transnational laundering patterns.
Legal outlook
The charges carry substantial potential prison time and financial penalties if the defendants are convicted, though any sentence will depend on the specific counts of conviction and federal sentencing guidelines. Assistant U.S. Attorney Brian Hayes is listed as the prosecutor on the case. Legal reporting in Law360 and the Justice Department’s filings indicate that arraignments have not yet been scheduled and that several earlier co-defendants have already pleaded guilty…