Medicare Fraudster Mohammed Asif Sentenced To Two Years; Ordered To Repay $1.17 Million

According to US Attorney Charles Neil Floyd, a Washington diagnostic laboratory executive of Indian origin has been sentenced to two years in federal prison. He pleaded guilty to the charges. The scheme involved Medicare fraud worth millions.

Mohammed Asif, 35, was arrested on 10 April 2025 at Chicago O’Hare International Airport while attempting to leave the country.

Along with the prison term, he must repay $1,174,813, and he is expected to face removal proceedings once he completes his sentence.

Asif pleaded guilty on 4 September. He admitted to conspiring to commit health care fraud. The case was, however, tied to American Labworks LLC, a diagnostic testing facility in Everett, Washington, which is now closed.

Handing down the sentence, US District Judge James L Robart called the $1.17 million loss “a significant amount of money. It was money that was siphoned out of the Medicare system, which is designed to treat the elderly and the poor. (The defendant) lacks moral character as a knowing participant in the fraud. He is someone the public needs to be protected from.”

Federal prosecutors said Asif and his associates submitted Medicare bills for COVID-19 and respiratory tests that were never ordered by doctors and never performed.

“Mr 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,” Floyd stated.

He further asserted, “Regrettably, schemes like this one are not unique. Medicare is a constant target of fraud, and the harm to the United States and taxpayers is substantial. We will continue to investigate and prosecute such fraud schemes.”

Background on American Labworks

Court documents show that American Labworks was established in October 2021 and dissolved in March 2025. Its medical testing licence expired in December 2023.

Throughout its existence, Asif was, however, identified as its owner and director in state and Medicare records.

Billing data from April to December 2024 revealed that the business claimed over $8.7 million in Medicare charges and collected more than $1.1 million. Complaints soon began to surface.

Between June 2024 and March 2025, Medicare received more than 200 reports from beneficiaries and others raising concerns about the lab’s bills.

Patients Report False Claims

Several patients said they were charged for tests they never underwent.

One Medicare beneficiary reported a $545 payment for COVID-19 tests. The claims showed tests in August 2023 and March 2024. The beneficiary said they had never visited the lab.

Others said they did not recognise the referring doctors listed in the claims. Many physicians listed in the paperwork told investigators they had never sent patients to American Labworks.

In some instances, the records showed testing dates after the patient had already died.

Other claims listed referrals from doctors who were no longer alive when the tests were supposedly ordered.

Financial evidence placed Asif firmly in control. Prosecutors said he managed the company’s bank account, cashed numerous cheques, and withdrew significant amounts of money.

In May 2024 alone, he removed $260,000. Shortly after, Asif, then in the US on a student visa, travelled to India. He returned in March 2025 as investigators were closing in.

“Billing Medicare for millions of dollars’ worth of laboratory testing that was never furnished is a serious offence that undermines the integrity of our healthcare system and diverts critical resources from those who truly need them,” noted Robb R Breeden, Acting Special Agent in Charge at HHS-OIG.

FBI Seattle Special Agent in Charge W Mike Herrington further added that Asif exploited the COVID-19 pandemic for personal gain, a tactic seen in numerous fraud cases.