Federal operation uncovers billions in fraudulent addiction treatment claims
Nearly 200 defendants charged in largest health care fraud takedown to date
The United States Department of Justice has unveiled details of a major nationwide operation targeting health care fraud, announcing charges in nearly 200 federal cases. The takedown marks the largest in U.S. history in this sector, with intended losses totaling approximately $14.6 billion.
Among the most prominent cases is that of Pakistani national Farrukh Ali, who is accused of orchestrating a $650 million fraud scheme involving addiction treatment services in Arizona. According to court documents, Ali allegedly worked with at least 41 clinics to submit false claims to Arizona’s Medicaid program, particularly the one aimed at Native American communities.
Between April 2021 and July 2023, Ali, operating through his company ProMD Solutions LLC — registered in Arizona but based in Pakistan — assisted clinics with medical credentialing, coding, and billing. The clinics involved reportedly did not provide legitimate care, and patients were often recruited from homeless shelters or Native American reservations.
Authorities say individuals were offered free housing and addiction services in Phoenix, although these services were frequently not delivered. Clinics favored patients enrolled in the state’s Native American program (AIHP) due to the higher reimbursements offered.
Ali has been charged with conspiracy, wire fraud, and money laundering. His company allegedly received approximately $25 million, while total fraudulent payments to all clinics reached $564 million. Part of these funds, prosecutors allege, was used to purchase luxury real estate abroad. This initiative reflects the government’s ongoing efforts to safeguard public health resources and ensure accountability in the medical billing system, emphasizing that fraudulent schemes directly affect taxpayers and the broader health care infrastructure.
