'Largest National Health Care Fraud' Bust; 2 Naperville Men Charged: Feds

NAPERVILLE, IL — Two Naperville men were among more than 320 defendants throughout the U.S. charged in what federal prosecutors say is the "largest national health care fraud enforcement action in Department of Justice history." Nationwide, the schemes were linked to intended losses totaling over $14.6 billion, per prosecutors.

During the bust, government officials seized luxury cars, over $245 million in cash and cryptocurrency. The 324 defendants are accused of such crimes as filing false insurance claims, illegally obtaining Medicare identification info and money laundering.

In Illinois, the health care fraud ring involved more than $1.8 billion in fraudulent reimbursements, a news release said.

Sufyan Feroze, 34, and Minhaj Feroz Muhammad, 37, both of Naperville, are among 13 people in the Northern District of Illinois charged in the case. The pair is accused of filing more than $72 million false insurance claims to Blue Cross Blue Shield of Illinois and Medicare as part of FZ Medical Inc., d/b/a Next Labs Inc.

Prosecutors say Next Labs Inc. was paid more than $9.7 million in reimbursements for COVID lab tests that never took place.

Other defendants throughout Illinois include an Earlville woman, an Orland Park man.

“The U.S. Attorney’s Office for the Northern District of Illinois is proud to partner with the Department of Justice and multiple law enforcement agencies in the largest health care fraud takedown in our District’s history,” Andrew S. Boutros, United States Attorney for the Northern District of Illinois, said in a statement.

Boutros continued, “Health care fraud is an insidious crime that siphons off hard-earned tax dollars meant to provide care for people of limited means as well as the vulnerable and disabled. It leads to increased health care costs, including higher insurance premiums and taxes, as well as potentially jeopardizing the quality and safety of treatment. At nearly $2 billion, the alleged combined fraud at issue in these cases is staggering."

He added, " This type of criminal conduct not only undermines the very fabric of our health care system, but also can lead to mistrust between patient and health care provider, especially when the criminal conduct is committed by medical professionals in a position of trust. Our Office will continue to vigorously pursue those who seek to exploit these critically important health care programs by placing greed and profits above patient care.”