A fugitive accused of orchestrating a massive $547 million Medicare fraud scheme has been arrested after spending more than three years evading U.S. authorities, the Department of Justice announced.
Khalid Satary, 54, was apprehended on July 20 by law enforcement partners in the Middle East and returned to the United States to face multiple federal charges tied to one of the largest health care fraud cases ever prosecuted by the Justice Department.
According to prosecutors, Satary allegedly operated a nationwide scheme that billed Medicare hundreds of millions of dollars for medically unnecessary genetic testing while paying illegal kickbacks to doctors and patient recruiters.
Allegedly Billed Medicare More Than $547 Million
Federal prosecutors say Satary owned and operated several diagnostic testing laboratories across the United States between 2016 and 2019.
According to a 2019 federal indictment, he allegedly conspired with telemarketing call centers, telemedicine companies, and dozens of patient recruiters to convince Medicare beneficiaries — primarily elderly patients — to undergo unnecessary cancer genetic tests.
Authorities allege the operation relied on deceptive marketing campaigns, illegal kickbacks, and physician bribes to obtain genetic test samples that generated Medicare reimbursements ranging from $10,000 to $20,000 per test.
Through his laboratories, Satary allegedly submitted more than $547 million in fraudulent Medicare claims.
Investigators also allege he paid millions of dollars in illegal kickbacks and bribes while accumulating significant assets. During the investigation, the government seized 16 bank accounts and restrained real estate connected to the alleged scheme.
Fled the United States While Out on Bond
After being indicted in 2019, Satary was released on bond despite government objections.
As a condition of his release, he was prohibited from working in the health care industry. However, prosecutors allege Satary continued participating in fraudulent Medicare billing by working with Houston-area laboratories while awaiting trial.
In December 2022, a federal judge issued an arrest warrant after Satary failed to appear for a scheduled court hearing. Authorities allege he fled the United States and remained a fugitive until his capture this week.
When authorities arrested Satary overseas, officials said he was carrying a fake Mexican passport under a false identity. He was transferred into U.S. custody and made his initial court appearance Tuesday in the Eastern District of Virginia.
Added to FBI’s Most Wanted Fraudsters List
Satary’s arrest comes less than one month after the FBI added him to its newly created Most Wanted Fraudsters List. The list, announced on June 4, is part of a broader federal effort to locate individuals accused of large-scale financial and health care fraud.
According to the FBI, Satary is the third fugitive captured through the initiative within five weeks. FBI Director Kash Patel said the arrest demonstrates the effectiveness of increased coordination among U.S. agencies and international law enforcement partners.
Charges and Possible Sentence
Satary is charged with:
- Conspiracy to commit health care fraud and wire fraud.
- Health care fraud.
- Conspiracy to defraud the United States and pay or receive illegal health care kickbacks and bribes.
- Conspiracy to commit money laundering.
If convicted, he faces:
- Up to 20 years in prison for conspiracy to commit wire fraud and conspiracy to commit money laundering.
- Up to 10 years for health care fraud and conspiracy to commit health care fraud.
- Up to five years for conspiracy to defraud the United States and conspiracy involving illegal kickbacks.
The charges are allegations, and Satary is presumed innocent unless and until proven guilty in court.
Justice Department Says Fraud Targeted Vulnerable Patients
Acting Attorney General Todd Blanche said the alleged scheme exploited thousands of elderly Americans while costing taxpayers hundreds of millions of dollars.
Officials from the Department of Justice, FBI, Department of Health and Human Services Office of Inspector General (HHS-OIG), and the U.S. Attorney’s Office for the Eastern District of Louisiana said the investigation reflects an ongoing effort to pursue health care fraud suspects, including those who flee the country.
The case is being investigated by the FBI and HHS-OIG, with assistance from U.S. Customs and Border Protection International Operations and international law enforcement partners.
According to the Justice Department, since 2007 its Health Care Fraud Strike Force Program has charged more than 6,200 defendants accused of collectively billing federal health care programs and private insurers more than $45 billion.
Provided by Dallas Express
