Nouman Mustafa and Mohsin Khan, both dual‑citizens of the United States and Pakistan, operated a string of shell durable‑medical‑equipment companies from January 2025 to January 2026. None of the firms had storefronts, warehouses or any physical presence that would support a legitimate DME operation; investigators say they were built solely to file claims.
The duo sourced claimant data from contacts in Pakistan and elsewhere, harvesting real Medicare beneficiary names and physicians’ details. They then used that information to file claims that the Department of Health and Human Services Office of Inspector General later flagged as suspicious.
Mustafa was arrested on February 11, 2026, at Los Angeles International Airport while attempting to board a one‑way flight to Pakistan. Khan was taken into custody at his Bakersfield home on September 30, the day the indictment was released, and is scheduled to appear before a federal judge the following week.
Each health‑care‑fraud count carries a maximum sentence of ten years and a $250,000 fine; the aggravated‑identity‑theft charges carry a mandatory two‑year minimum, to run consecutively. The defendants are presumed innocent until proven guilty, but the DOJ has indicated it will pursue forfeiture of the $3.5 million they allegedly siphoned.
The scheme hit real people: 72‑year‑old Martha Singh of Bakersfield reported her claim was denied after the fraudulent activity flagged her account. The next hearing is set for November 15, when the court will decide whether to impose pre‑trial bail.
The DOJ’s indictment underscores a broader crackdown on Medicare fraud, with federal prosecutors already targeting similar schemes across the country.
As the court prepares for the first appearance, both men face the prospect of a lengthy pre‑trial detention and a judgment that could set a precedent for how quickly the federal system responds to Medicare fraud.