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An individual from India who confessed to running a Medicare scam worth millions through a diagnostic lab in Washington was given a two-year prison sentence by US Attorney Charles Neil Floyd. Mohammed Asif, 35, was arrested on April 10, 2025, at Chicago O'Hare International Airport while trying to catch an international flight and has been mandated to pay back $1,174,813. After serving his time, he is likely to be deported. Asif admitted guilt on September 4 to plotting health care fraud linked to the activities of American Labworks LLC, a diagnostic testing lab in Everett, Washington that is no longer in business. US District Judge James L. Robart, who handed down the sentence, remarked that the fraud loss of $1,174,813 is “a considerable sum. It was money taken from the Medicare system, which is meant to assist the elderly and those in need… (The defendant) lacks moral integrity as a willing participant in the scam… He is someone the society needs protection from.”
Prosecutors stated that Asif and his accomplices charged Medicare for COVID-19 and other respiratory tests that were never ordered or conducted. US Attorney Floyd remarked, “Mr Asif was part of a plan to illegally obtain over a million dollars from Medicare — funds intended for essential medical services.” He continued, “Unfortunately, schemes like this are not uncommon. Medicare is frequently targeted by fraud, resulting in significant damage to the United States and taxpayers. We will keep investigating and prosecuting such fraudulent activities.” Court documents reveal that records from Washington state indicate American Labworks was created in October 2021 and shut down in March 2025. Its license as a Medical Test Site expired in December 2023. During this time, Asif was recognized as the owner and director by the state and Medicare. Claims data from April to December 2024 shows that the lab charged Medicare over $8.7 million for diagnostic services and obtained more than $1.1 million in reimbursements. Complaints began to emerge. Between June 2024 and March 2025, Medicare received over 200 complaints from beneficiaries and others regarding the lab.
Some beneficiaries reported being billed for tests they never had. One enrollee stated that Medicare paid American Labworks $545 for COVID-19 tests in August 2023 and March 2024, even though they were not tested then. Others mentioned not even recognizing the doctors listed as referring providers. Several physicians, whose names appeared in the lab's billing documentation, informed investigators that they had not sent any patients to that facility. In certain situations, records indicated testing dates after a beneficiary had passed away. Other claims showed referrals from doctors who had died before the tests were supposedly ordered.
Financial documents showed that Asif was the key person in the scheme. Prosecutors mentioned he had control over the company’s bank account, accepted numerous checks, and took out significant amounts of money. In May 2024 alone, he took out $260,000. Shortly after that, Asif, who was living in the US on a student visa, traveled to India. He came back in March 2025 just as investigators were getting closer to him.
“Charging Medicare for millions of dollars' worth of lab tests that were never provided is a grave crime that damages the trust in our healthcare system and takes away essential resources from those who genuinely need them,” remarked Robb R. Breeden, the Acting Special Agent in Charge of HHS-OIG.
FBI Seattle Special Agent in Charge W. Mike Herrington stated, “Like many other cheats who exploit such circumstances, Mr. Asif took advantage of the COVID-19 pandemic to rob taxpayers for his own benefit…”
