Two Pakistani Nationals Have Been Charged in $3.5 Million California Medicare Fraud Scheme

It’s a day ending in -y, and we have yet another story of Medicare fraud out of California. This time, two Pakistani nationals have been charged in a $3.5 million Medicare fraud scheme.

Nouan Mustafa, 36, and Mohsin Khan, 40, are the two men at the center of this latest scheme. Mustafa was at Los Angeles International Airport, where he tried to board a one-way flight to Pakistan in February. Khan was arrested this week in Bakersfield.

Both have dual U.S. and Pakistani citizenship.

#BREAKING: Two Pakistani nationals indicted for $3.5M Medicare fraud scheme in California.

— Insider Wire (@InsiderWire) October 1, 2026

Here’s more:

Law enforcement said the two men created a series of shell companies between January 2025 and January 2026 that were designed to look like legitimate “durable medical equipment” companies, or DME companies.

Officials said in reality, the businesses had no storefronts, warehouses or any locations were legitimate business was conducted.

Through the shell companies, court officials said Mustafa and Khan submitted $3.5 million in fraudulent claims to Medicare.

“They typically relied on one company for only a few weeks or months until its claims began getting denied for suspected fraud, at which point they shifted to the next company,” officials said. “Mustafa and Khan got the information to file the fraudulent claims from their contacts in Pakistan and elsewhere.”

The courts are alleging that the two defendants pocketed about 30% of the proceeds and sent the rest to their contacts.

This isn’t the first time Pakistani nationals have been charged with fraud. In February, prosecutors charged Burhan Mirza in connection with a $10 million Medicare fraud scheme in Chicago. In March, Jahangeer Ali was charged with healthcare fraud for a scheme to fraudulently bill Medicare for laboratory testing services never performed. Authorities are also looking for four Pakistanis — Fizza Faird, Faizan Saleem, Shearyar Arif and Ruknuddin Charolia — who allegedly used a call center to steal Medicare IDs that generated more than $700 million in false claims for things like COVID tests and medical equipment.

🚨 Pakistanis doing what they are best at

Four fugitives allegedly used a call center in Pakistan to steal USA Medicare ID’s and flood Medicare with $703M in fake claims.

They may be in Pakistan or the UAE. pic.twitter.com/ocEcKmoGIh

— Kreately.in (@KreatelyMedia) September 4, 2026

Those fugitives may be back in Pakistan or the UAE.

A federal grand jury indicted two Pakistani nationals—Mohsin Khan, 40, of Bakersfield, and Nouman Mustafa, 36, of Torrance—for running an alleged $3.5 million Medicare fraud scheme. pic.twitter.com/VsW75mbAHS

— Greg 🇺🇸 ✭ (@GregB_TX) October 1, 2026

Colin M. McDonald, the Assistant Attorney General for the DOJ’s Fraud Division, shared the DOJ’s press release on the indictment.

🚨Indictment in $3.5M Medicare Fraud Scheme

Two Pakistani Nationals residing in California have been indicted in a scheme to defraud Medicare.

Great work by @EDCAnews & @OIGatHHS to bring this case to light.

READ MORE: 👇https://t.co/PlKqo91Zil

— Colin M. McDonald (@AAGMcDonald) September 30, 2026

If convicted, Khan and Mustafa face up to 10 years in prison and fines of $250,000 for each of the healthcare fraud counts. This includes a mandatory minimum of two years in prison, with consecutive sentences for any other sentences, for each of the aggravated identity theft counts.

Editor’s Note: Do you enjoy Townhall’s conservative reporting exposing the radical left and woke media? Support our work so we can keep bringing you the truth.

Join Townhall VIP and use promo code FIGHT to receive 60% off your membership.