Goodsurance

Policy & oversight

Illinois Man Pleads Guilty to Billing Medicare 227 Million Dollars for COVID Test Kits Never Sent

Syed Murtuza Kablazada, 36, admitted he paid a Pakistani company 11 million dollars for Medicare beneficiaries' personal data, then used three Chicago-area labs to file claims for test kits that were never requested or delivered.

By the Goodsurance editorial teamOctober 31, 2026

A 36-year-old Des Plaines, Illinois resident pleaded guilty on October 30, 2026 to two counts of health care fraud after federal prosecutors said he submitted 227 million dollars in false Medicare claims for COVID-19 test kits that were never requested by or sent to beneficiaries.

Syed Murtuza Kablazada acquired three Chicago-area laboratories, named Chicago Care, V Care, and Al-Ameer, over roughly six months starting in January 2023. He paid approximately 11 million dollars to a purported telemarketing company based in Pakistan to obtain personally identifiable information for hundreds of thousands of Medicare beneficiaries. Using that information, he caused the laboratories to submit fraudulent claims to the program. Medicare paid approximately 136 million dollars before the scheme was detected.

An Illinois man admitted billing Medicare 227 million dollars for COVID test kits that were never ordered or delivered, using patient data bought from a company in Pakistan.

To conceal the fraud, Kablazada and co-conspirators moved proceeds through overseas transfers and unlicensed money transmitters and used some funds to purchase luxury vehicles. As part of his plea agreement, Kablazada agreed to forfeit more than 46 million dollars in fraud proceeds seized from ten bank accounts.

The case was investigated by the FBI's Chicago field office and the HHS Office of Inspector General and was announced by the Justice Department's National Fraud Enforcement Division. A sentencing date had not been set at the time of the press release. Kablazada faces a maximum penalty of 20 years in prison.

In plain words

A man in Illinois told Medicare he had sent COVID-19 test kits to patients. He never did. He bought patients' personal information from a company in Pakistan. He then used three medical labs to bill Medicare 227 million dollars for kits that nobody asked for or received. Medicare paid about 136 million dollars. He agreed to give back more than 46 million dollars that was seized. He could go to prison for up to 20 years.

Source: DOJ
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