A fugitive linked to a $547 million Medicare fraud case has been arrested after evading authorities for over three years, the Department of Justice stated. Khalid Satary, 54, was apprehended in the Middle East on July 20 and returned to the U.S. to face charges related to one of the most significant health care fraud cases pursued by the Justice Department.
Fraud Scheme Involving Unnecessary Genetic Tests
Federal investigators allege that Satary managed diagnostic testing labs, billing Medicare for unnecessary genetic tests from 2016 to 2019. The scheme purportedly involved telemarketers, patient recruiters, and telemedicine firms, resulting in Medicare being billed more than $500 million. Indicted in 2019, Satary fled the country after missing a court appearance in 2022, and the FBI listed him as a ‘Most Wanted Fraudster’ on June 23. His capture and extradition followed shortly, with authorities stating he carried a fake Mexican passport under an alias when detained. He faced an initial court appearance this Tuesday.
Prosecutors’ Allegations
Satary’s labs allegedly profited from costly cancer screening tests reimbursed by Medicare.
The indictment outlines how deceptive marketing, telemedicine, and illegal kickbacks were used to promote unnecessary testing. Each test generated Medicare reimbursements ranging between $10,000 to $20,000. The DOJ claims Satary-affiliated labs billed Medicare over $547 million in three years, with millions distributed as bribes to involved doctors and patient recruiters. As part of the investigation, authorities seized 16 bank accounts and curtailed real estate assets linked to Satary.
Flight and Capture
Released on bond in 2019 despite government objections, Satary was barred from participating in health care activities. However, prosecutors contend he continued fraudulent activities in Houston-area labs. A federal arrest warrant was issued in December 2022 after he allegedly violated release conditions by not appearing in court. Satary then fled the U.S., remaining abroad for over three years. The Justice Department announced his capture by Middle Eastern partners on July 20, noting he possessed a fraudulent Mexican passport under another name.
Department of Justice Statement
Acting Attorney General Todd Blanche said the defendant targeted elderly patients, costing taxpayers hundreds of millions. “This defendant orchestrated a massive fraud scheme preying on thousands of elderly patients, deceiving them into unnecessary medical tests and billing the government for over half a billion dollars,” Blanche stated.
Assistant Attorney General Colin McDonald highlighted the global commitment to pursue large-scale fraud suspects, emphasizing no refuge exists for those exploiting vulnerable Americans or critical health programs.
FBI’s Most Wanted Fraudsters Initiative
This arrest aligns with the FBI’s new Most Wanted Fraudsters initiative, launched on June 4. FBI Director Kash Patel noted Satary’s apprehension as the third from the list in five weeks, marking a successful outcome for the initiative aimed at targeting suspects defrauding government programs and taxpayers.
Charges and Possible Sentences
Satary faces charges of conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy against the United States, illegal kickbacks, and conspiracy to launder money. Following his return to the U.S., he made a preliminary court appearance on Tuesday. If found guilty, Satary could receive up to 20 years for conspiracy charges related to wire fraud and money laundering, up to 10 years for health care fraud, and up to five years for conspiracy against the U.S.