The Department of Justice announced the arrest of Khalid Satary, a fugitive accused of orchestrating a $547 million Medicare fraud scheme. Satary, age 54, was captured in the Middle East on July 20 after evading authorities for over three years. He has been brought back to the United States to face charges related to what prosecutors call one of the largest health care fraud cases ever handled by them.
Alleged Fraud Scheme Details
Authorities allege that Satary owned and operated diagnostic testing laboratories. From 2016 to 2019, these labs billed Medicare for unnecessary genetic tests. The operations allegedly relied on telemarketers, patient recruiters, and telemedicine companies to target elderly patients. Medicare reportedly paid out more than half a billion dollars for these tests.
Originally indicted in 2019, Satary failed to appear for a court hearing in 2022, leading the FBI to add him to its “Most Wanted Fraudsters” list by June 23. In less than a month, officials announced his capture saying he was carrying a fraudulent Mexican passport under an assumed name.
Prosecutors’ Allegations
According to the indictment, Satary managed several diagnostic labs that profited from genetic cancer screening tests reimbursed by Medicare. Authorities claim the scheme used misleading marketing, telemedicine services, and illegal kickbacks to generate referrals for tests that were not medically necessary. These tests allegedly resulted in Medicare reimbursements ranging from $10,000 to $20,000 per sample.
Prosecutors outlined that labs linked to Satary billed Medicare over $547 million within three years. Millions of dollars in kickbacks and bribes were paid to doctors and patient recruiters involved, according to authorities. Federal authorities have seized 16 bank accounts and restrained real estate assets tied to the case.
Satary’s Flight and Capture
Satary was released on bond post-indictment, though the government objected. He was barred from working in the health care industry as a condition of his release. Despite this, prosecutors contend he engaged in further fraudulent genetic testing via Houston-area labs. Due to violation of release conditions and failure to appear in court, a federal arrest warrant was issued in December 2022. Satary then fled the United States.
Regional partners in the Middle East apprehended him on July 20. Officials found him with a fake Mexican passport. Acting Attorney General Todd Blanche stated the defendant orchestrated a scheme targeting elderly patients, defrauding taxpayers significantly.
DOJ’s Stand and FBI’s Initiative
Assistant Attorney General Colin McDonald emphasized the arrest highlights the inability of fraudsters to evade consequences even abroad. He asserted “no safe haven for fraudsters” exploiting vulnerable Americans.
The FBI has linked Satary’s arrest to its new Most Wanted Fraudsters initiative, launched on June 4. FBI Director Kash Patel noted that Satary’s capture marks the third success through this program within five weeks.
Charges and Legal Proceedings
Satary faces charges of conspiracy to commit health care fraud and wire fraud, healthcare fraud, conspiracy to defraud the United States, and conspiracy to pay and receive illegal health care kickbacks and bribes. Additionally, he faces conspiracy to commit money laundering charges. If convicted, Satary could face up to 20 years in prison for the conspiracy to commit wire fraud and money laundering counts, up to 10 years for health care fraud-related charges, and up to five years for conspiracy to defraud the United States.