Everett Lab Owner Sentenced to 2 Years for $1M Medicare Fraud Scheme
The owner of an Everett-based laboratory has been sentenced to two years in federal prison for a Medicare fraud scheme that defrauded taxpayers of more than $1 million. Mohammed Asif, 35, pleaded guilty to conspiracy to commit health care fraud on September 4 and was ordered to pay $1,174,813 in restitution, according to U.S. Department of Justice court documents.
Background and Context
Asif, the director of American Labworks LLC, was arrested on April 10 at Chicago O’Hare International Airport while attempting to board an international flight. The case highlights ongoing vulnerabilities in Medicare’s billing systems, particularly for pandemic-related services. Authorities have warned that fraudulent claims for COVID-19 and respiratory tests surged during the public health emergency, straining oversight resources.
Key Figures and Entities
Court records show Asif orchestrated the scheme alongside unnamed partners, submitting false claims for tests that were never ordered or performed. Between April and December 2024, American Labworks billed Medicare over $8.7 million and received $1.1 million in payments. Many beneficiaries reported being billed for tests they never received, with some claims filed after their deaths. Financial records revealed Asif withdrew $260,000 in May 2024, shortly before temporarily leaving the U.S.
Legal and Financial Mechanisms
The fraud exploited Medicare’s fee-for-service model, which reimburses providers for claimed tests without immediate verification of service delivery. Asif’s guilty plea to conspiracy charges underscores the deliberate nature of the scheme. The restitution order reflects the total amount improperly paid to American Labworks, while his expected deportation following imprisonment aligns with federal sentencing guidelines for non-citizen offenders.
International Implications and Policy Response
The case underscores gaps in cross-border enforcement, as Asif’s attempt to flee the country suggests awareness of impending legal consequences. Federal agencies have since intensified scrutiny of lab billing practices, with lawmakers debating stricter verification requirements for high-cost diagnostic claims. The investigation remains ongoing, with authorities probing potential accomplices.
Sources
This report draws on U.S. Department of Justice filings, court records, and public statements from federal prosecutors. Additional context was provided by Centers for Medicare & Medicaid Services guidelines on pandemic-era billing oversight.
