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A fugitive accused of orchestrating a $547 million Medicare fraud scheme has been arrested after spending more than three years on the run, according to the Department of Justice.
Khalid Satary, 54, was taken into custody in the Middle East on July 20 and returned to the United States to face charges linked to what prosecutors have described as one of the largest health care fraud cases ever charged by the Justice Department.
Federal authorities allege that Satary owned and operated diagnostic testing laboratories that billed Medicare for medically unnecessary genetic tests between 2016 and 2019.
Prosecutors claim the operation relied on telemarketers, patient recruiters and telemedicine companies to generate test samples from elderly patients, with Medicare allegedly billed more than half a billion dollars through the scheme.
Satary was originally indicted in 2019 but authorities say he fled the country after failing to appear for a court hearing in 2022. The FBI added him to its “Most Wanted Fraudsters” list on June 23.
Less than a month later, officials announced his capture and transfer into U.S. custody, saying he was allegedly carrying a fake Mexican passport under an assumed name when apprehended. He made his initial court appearance on Tuesday.
What Prosecutors Allege
According to the indictment and court documents cited by the Justice Department, Satary owned and operated several diagnostic testing laboratories across the United States that allegedly profited from expensive genetic cancer screening tests reimbursed by Medicare.
Authorities allege the scheme used deceptive marketing campaigns, telemedicine services and illegal kickbacks to generate referrals for testing that was not medically necessary. Prosecutors say the tests generated Medicare reimbursements of between $10,000 and $20,000 per sample.
The DOJ says that laboratories linked to Satary billed Medicare more than $547 million over a three-year period and that millions of dollars in kickbacks and bribes were paid to doctors and patient recruiters involved in the operation.
In connection with the case, federal authorities seized 16 bank accounts and restrained real estate assets linked to the defendant, according to court filings.
Flight From the United States
After being indicted in 2019, Satary was released on bond over the government’s objection. One of the conditions of his release prohibited him from working in the health care industry.
Prosecutors allege that while on bond he continued participating in fraudulent genetic testing activity through Houston-area laboratories. A federal arrest warrant was issued in December 2022 after Satary allegedly violated the conditions of his release and failed to appear for a court hearing.
Authorities say he subsequently fled the United States and remained abroad for more than three years.
The Justice Department said regional partners in the Middle East apprehended Satary on July 20. Officials said he was found carrying a fraudulent Mexican passport under a different name when taken into custody.
DOJ: ‘No Safe Haven for Fraudsters’
Announcing the arrest, Acting Attorney General Todd Blanche said the defendant allegedly orchestrated a scheme that targeted elderly patients and cost taxpayers hundreds of millions of dollars.
“This defendant allegedly orchestrated a massive fraud scheme that preyed on thousands of elderly patients, deceiving them into undergoing expensive, medically unnecessary tests and fraudulently billing the government for more than half a billion dollars,” Blanche said.
Assistant Attorney General Colin McDonald said the arrest demonstrates that individuals accused of large-scale fraud can still be pursued after leaving the country.
“As today’s arrest shows, there is no safe haven for fraudsters who seek to exploit vulnerable Americans or our Nation’s critical health care programs,” McDonald said.
FBI Touts Success of New Most Wanted Fraudsters List
The arrest marks the latest capture linked to the FBI’s new Most Wanted Fraudsters initiative, launched on June 4.
FBI Director Kash Patel said Satary’s apprehension was the third capture from the list in approximately five weeks. “Continuing the historic run of success for this new initiative,” he said.
The bureau has promoted the initiative as part of a wider effort to pursue suspects accused of defrauding government benefit programs and American taxpayers.
Charges and Potential Sentence
Satary is charged with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to defraud the United States and to pay and receive illegal health care kickbacks and bribes, and conspiracy to commit money laundering.
He made an initial court appearance on Tuesday after arriving back in the United States.
If convicted, Satary faces potential prison sentences of up to 20 years on the conspiracy to commit wire fraud and money laundering counts, up to 10 years on the health care fraud-related charges, and up to five years on the conspiracy to defraud the United States charge.
Contact Newsweek editors on this story: Rebecca Flood and Emma Lee-Sang
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