India Man Wanted in $93 Million Medicare Genetic Testing Fraud Case

$93 Million Genetic Testing Fraud Case: Indian Man Accused of Using Doctors’ Identities in Medicare Scheme

Khadeer Khan Mohammed, a Texas laboratory owner wanted by US authorities, is accused of causing about $93 million in fraudulent Medicare claims for genetic testing, with at least $65 million allegedly paid before investigators seized nearly $6 million.

A Texas laboratory owner of Indian origin is being sought by US federal authorities over an alleged $93 million Medicare genetic testing fraud scheme that prosecutors say relied, in part, on the unauthorized use of doctors’ identifying information.

Khadeer Khan Mohammed, 46, is accused of causing approximately $93 million in false and fraudulent claims to be submitted to Medicare through American Premier Labs LLC, a laboratory he owned in Richardson, Texas. Federal authorities say Medicare paid at least $65 million of those claims, including roughly $13 million during a single 10-day period in 2023.

The allegations are unusually large even within the broader category of Healthcare Fraud because the alleged scheme was not simply about submitting inflated bills. Authorities say genetic testing claims were submitted for Medicare beneficiaries even though the tests were allegedly not properly ordered, were ineligible for reimbursement, or were not provided as represented.

Investigators also allege that physicians’ personal identifying information was used without their knowledge or consent. The doctors reportedly had no treatment relationship with the Medicare beneficiaries associated with the claims.

Mohammed has been listed by US authorities as a fugitive, with his possible whereabouts identified as Hyderabad, India. His case remains pending, however, and the allegations have not resulted in a conviction. Under US law, Mohammed is presumed innocent unless proven guilty in court.

What is Khadeer Khan Mohammed accused of doing?

The central allegation concerns the submission of fraudulent claims for laboratory genetic testing to the US Medicare program.

Medicare is a federal Health insurance program serving primarily older Americans and certain people with disabilities. Because the program reimburses eligible healthcare services, laboratories and healthcare providers can submit claims for covered tests and services that meet applicable requirements.

According to the allegations against Mohammed, American Premier Labs was used to submit claims that did not satisfy those requirements.

Federal investigators say the alleged claims involved genetic tests that were:

• Not eligible for Medicare reimbursement;
• Not requested or ordered by authorized medical providers; or
• Not actually provided in the manner represented in the claims.

The allegations go further. Authorities say Mohammed used the identifying information of physicians who had no relationship with the Medicare beneficiaries named in the claims. The doctors allegedly did not know their information was being used and had not ordered the genetic tests.

That distinction is important because a legitimate laboratory claim generally requires a connection between the medical service, the patient and an authorized provider. If a physician’s identity is used to make a claim without that physician’s knowledge, the paperwork can create the appearance of legitimate medical authorization even when the underlying service does not meet the requirements for reimbursement.

How much money was allegedly involved?

The numbers cited by US authorities illustrate the scale of the alleged operation.

The $93 million figure represents the value of the alleged claims, not money that Mohammed necessarily received personally. That distinction matters in healthcare fraud cases because a claim can be submitted for a particular amount while the actual amount reimbursed by a government program is lower.

In this case, authorities say Medicare paid approximately $65 million of the roughly $93 million in claims.

The alleged pace of the billing is also notable. About $13 million was reportedly paid by Medicare in just 10 days during 2023. That works out to an average of roughly $1.3 million in payments per day during that period, although the available allegations do not establish that the payments were evenly distributed across those 10 days.

Why the doctors’ identities are central to the case

One of the most significant elements of the allegations is the alleged misuse of physicians’ personal identifying information.

Authorities say Mohammed used doctors’ information without their knowledge or consent to submit claims for genetic tests involving Medicare beneficiaries whom those physicians had never treated.

The alleged use of physician identities is important because a doctor’s involvement can provide the appearance of medical legitimacy to a laboratory claim. In a legitimate healthcare transaction, a physician may order a diagnostic test because it is relevant to a patient’s condition or treatment. The laboratory then performs the service and submits an appropriate claim.

The allegations in Mohammed’s case describe a fundamentally different arrangement. Authorities say the physicians whose identifying information appeared in the claims had no treatment relationship with the beneficiaries and had not ordered the tests.

If proven in court, that would mean the identity of a legitimate medical professional was allegedly used to support claims for services that the physician had not requested.

It also explains why the case involves more than a dispute over billing practices. The allegations concern the integrity of the information used to establish who authorized medical testing and whether the testing was actually connected to patient care.

What happened at American Premier Labs?

Mohammed is identified as the owner of American Premier Labs LLC, a laboratory based in Richardson, Texas.

Federal authorities allege that the scheme operated from approximately August 2023 through October 2024 in the Northern District of Texas and elsewhere.

During that period, investigators say the laboratory was used to submit approximately $93 million in fraudulent Medicare claims connected to genetic testing.

Genetic testing has become an important part of modern medicine because DNA-based tests can help identify inherited conditions, genetic risks and other clinically relevant information. But the complexity of genetic testing also creates challenges for healthcare programs responsible for determining whether a particular test was medically appropriate, properly ordered and eligible for reimbursement.

That makes documentation and provider verification especially important. A claim is not supposed to become legitimate simply because a laboratory can attach a patient’s information and a physician’s identifying details to it.

Why genetic testing can be vulnerable to healthcare fraud

Genetic testing occupies a complicated position within the healthcare system. Some tests are clinically valuable and can influence diagnosis or treatment, while others may not qualify for reimbursement under particular circumstances.

The reimbursement process therefore depends on several pieces of information matching up: the patient, the ordering provider, the medical reason for the service, the test performed and the applicable Medicare rules.

An alleged scheme that bypasses those Relationships can potentially generate large numbers of claims without requiring the same level of patient interaction associated with traditional medical care.

That is one reason the alleged use of physicians’ identifying information is such an important detail in this case. The doctors allegedly did not order the tests, yet their information was used in connection with claims involving Medicare beneficiaries.

The allegations demonstrate how healthcare fraud can exploit administrative systems rather than relying only on traditional false billing. If proven, the alleged scheme would have manipulated the information surrounding medical claims to make services appear eligible for reimbursement.

How the alleged fraud was discovered

The case formed part of a broader federal effort to investigate healthcare fraud involving government healthcare programs.

Investigators from the FBI’s Dallas Field Office and the US Department of Health and Human Services Office of Inspector General were involved in the investigation into Mohammed.

The seizure of nearly $6 million from bank accounts controlled by Mohammed represents one of the government’s actions during the investigation. Asset seizures can be an important part of healthcare fraud investigations because investigators may seek to preserve funds that could potentially be connected to alleged criminal activity.

However, the seizure itself does not establish guilt. Whether particular funds are ultimately subject to forfeiture and whether the criminal allegations can be proven are matters determined through the legal process.

Why Mohammed is being sought in India

US authorities currently list Mohammed as a fugitive and identify Hyderabad as his possible location.

The fugitive status adds an international dimension to what began as a federal healthcare fraud investigation in Texas.

Being listed as a fugitive does not mean that a person has been convicted. It indicates that US authorities are seeking the person in connection with the pending criminal case.

The case also highlights the practical challenges that can arise when alleged financial crimes involve individuals, companies, bank accounts and potential locations across different jurisdictions.

For investigators, tracing money and establishing the origin of fraudulent claims can already be complicated. When an accused person is believed to be outside the United States, locating the individual and pursuing the appropriate legal procedures can add another layer of complexity.

The case is an allegation, not a conviction

The distinction between an accusation and a conviction is particularly important in a case involving a named individual.

Federal authorities have charged Mohammed with healthcare fraud, but the case remains pending. There has been no announced conviction or sentencing establishing that he committed the alleged scheme.

The allegations therefore need to be described carefully. The approximately $93 million figure refers to claims that authorities allege were fraudulent. The roughly $65 million figure refers to payments that authorities say Medicare made on those claims. Neither figure should be described as a court-established finding of criminal liability unless and until the case reaches that stage.

The same applies to the alleged misuse of doctors’ information. Federal authorities say the physicians’ identifying details were used without their knowledge or consent, but the allegation remains subject to the judicial process.

What the Medicare case reveals about healthcare fraud

The Mohammed investigation offers a broader lesson about the vulnerabilities of large healthcare reimbursement systems.

Medicare processes enormous numbers of claims involving hospitals, doctors, laboratories, pharmacies and other healthcare providers. Detecting fraudulent activity requires authorities to distinguish legitimate medical services from claims that may appear valid on paper but do not reflect actual patient care.

That challenge becomes more complicated when the alleged fraud involves specialized services such as genetic testing.

The case also demonstrates why provider identity is a critical component of healthcare billing integrity. A physician’s identifying information is not merely an administrative detail. It can connect a medical service to a specific professional and create an apparent chain of authorization.

If that information is allegedly used without the physician’s knowledge, investigators must determine not only whether money was improperly claimed but also how the identities were obtained, how the claims were generated and who ultimately benefited from the payments.

What happens next in the Khadeer Khan Mohammed case?

The immediate question is whether US authorities can locate Mohammed and bring the pending case forward through the federal judicial system.

The government’s investigation and the fugitive listing indicate that authorities continue to pursue the case. Any future proceedings would determine the strength of the allegations and whether the government can prove the charged conduct beyond the required legal standard.

The seized funds could also become part of subsequent legal proceedings. Their ultimate status would depend on the applicable forfeiture process and the outcome of the case.

For now, the most important facts are straightforward: federal authorities allege that approximately $93 million in fraudulent genetic testing claims were submitted to Medicare through American Premier Labs, that about $65 million was paid, that physicians’ identifying information was allegedly used without authorization, and that Mohammed is currently wanted by US authorities.

The case is significant not simply because of its dollar value, but because of the alleged method. It illustrates how healthcare fraud can operate through billing systems, provider identities and medical documentation rather than through conventional patient-facing deception.

And until the case is resolved in court, the allegations remain allegations. Mohammed has not been convicted, and the final determination of what happened rests with the US judicial process.