A 35-year-old Indian citizen has been sentenced to two years in a United States federal prison for orchestrating a Medicare fraud scheme that illegally obtained more than $1 million. Mohammed Asif, the owner of a diagnostic laboratory based in Everett, Washington, was convicted for his role in the conspiracy.
The Fraudulent Scheme and Court Conviction
Mohammed Asif, who operated American Labworks LLC, was found guilty in the US District Court in Seattle for conspiracy to commit health care fraud. According to prosecutors, Asif and his associates systematically billed Medicare for COVID-19 and respiratory illness tests that were never performed. The beneficiaries did not receive these tests, and the physicians listed on the claims never ordered them.
The laboratory submitted fraudulent claims totalling over $8 million to Medicare. From this enormous sum, the US government healthcare programme actually paid out more than $1.1 million before the scam was uncovered.
Judge's Remarks and Scale of The Fraud
While sentencing Asif, Judge James Robart ordered him to pay restitution of $1,174,813. The judge stated that the case involved funds "siphoned out of the Medicare system that is designed to treat the elderly and the poor." He added that Asif "lacks moral character as a knowing participant in the fraud."
The investigation was triggered by a flood of complaints. Between mid-2024 and 2025, authorities received more than 200 complaints from Medicare enrollees who were billed for tests they never underwent. In many instances, bills were submitted using the names of doctors who confirmed they had no association with American Labworks. Shockingly, some claims were filed even after the named patient or physician had died.
Company Timeline and Asif's Arrest
American Labworks was incorporated in October 2021 and was officially dissolved in March 2025. Notably, its state testing licence had already expired in December 2023, meaning it operated without a valid licence for over a year.
Financial records revealed that Asif, who controlled the company's bank account, withdrew $260,000 in May 2024 before travelling to India. He returned to the US in March 2025 as investigators were closing in on the fraud. His arrest took place on April 10, 2025, at Chicago O'Hare International Airport, where he was attempting to board an international flight. A grand jury indicted him later that same month, and he entered a guilty plea on September 4.
Official Statements and Aftermath
US Attorney Neil Floyd commented on the case, stating, "Asif participated in a scheme to steal more than a million dollars from Medicare - funds that are meant to be used for important medical care." He emphasized that this fraud fit a pattern of schemes that targeted taxpayer-funded programmes during the pandemic era.
W Mike Herrington, the head of the FBI's Seattle field office, noted, "In just a couple of years, his company billed Medicare millions of dollars for laboratory testing that never happened."
Authorities confirmed that Mohammed Asif was in the United States on a student visa. He is likely to be deported to India after he completes his two-year prison sentence. The investigation into his co-conspirators is still ongoing.
