Federal prosecutors in the United States have filed charges alleging a large-scale Medicare fraud scheme that authorities say involved fake diagnostic labs, fabricated invoices, and international money transfers, including payments routed to Pakistan.
The indictment, filed on January 29, 2026, in the US District Court for the Northern District of Illinois, accuses Burhan Mirza, a Pakistan-based business operator, and Kashif Iqbal, a Texas resident, of conspiring to defraud Medicare and other US health care benefit programs of more than $10 million.
TechJuice obtained a copy of the indictment from New Zealand-based investigative journalist Danny de Hek, who has previously collaborated with the publication on breaking stories.
Alleged Cross-Border Fraud Operation
According to the indictment, between approximately August 2023 and August 2024, the defendants allegedly submitted thousands of fraudulent claims for diagnostic tests, particularly Respiratory Pathogen Panel Tests (RPPTs), which, according to prosecutors, were never performed.
Nominee laboratories in the Indictment
The following were enrolled as Medicare providers but were allegedly used to submit claims for services that were never rendered.
- Entities including Hannan Lab, Inc.
- Advanced Diagnostic Solutions, Inc.
- Clinical Laboratory, Inc.
- American Health Sciences LLC
Key Defendants Named in the Case
The alleged fraud involved a network of individuals who coordinated across continents to carry out the scheme.
- Burhan Mirza, a resident of Pakistan and owner of Nexus BPO Solution, is said to have controlled sensitive patient information used to submit claims without authorization. Prosecutors allege he managed much of the operation from Pakistan, overseeing the flow of money and data.
- Kashif Iqbal, based in Lavon, Texas, acted as Mirza’s U.S. agent. He is accused of facilitating the transfer of fraud proceeds to Pakistan and managing the logistics of the scheme on American soil.
- Other co-schemers: The indictment mentions individuals such as Mir Akbar Khan, Navaid Rasheed, and Fasi ur Rahman Syed, described as participants in the alleged scheme but not charged as defendants.
Allegations Center on Cross-Border Financial Flows
According to the indictment, the alleged scheme relied on the use of nominee-owned laboratories, electronic claim submissions, and fabricated invoices to move funds across multiple jurisdictions. Prosecutors claim that portions of the proceeds were transferred through U.S. banking channels before being sent overseas, including to Pakistan and Israel.
The case highlights how digital billing systems, cross-border payment infrastructure, and IT-linked service entities can be misused in complex financial fraud investigations.
How the Scheme Worked
Authorities say the defendants used multiple methods to hide their tracks:
- Identity Theft: They obtained Medicare numbers and personal information to submit fake claims.
- Non-existent Services: Diagnostic tests were billed but never performed.
- Nominee Ownership: Associates were paid to appear as business owners to conceal the real operators.
- Fake Invoices: They created false bills for services like IT work, routed through companies like Ikonic IT Solutions LLC.
To further disguise the flow of funds, money was transferred internationally, often routed through U.S. accounts before reaching Mirza’s businesses in Pakistan, including Nexus BPO Solution and Axis BPO Solutions. One bold move involved sending over $227,000 to an Israeli bank under the name Cellify LLC.
Use of IT Services and Shell Companies
The indictment details how IT service companies were allegedly used to facilitate the flow of funds:
- Entities like Ikonic IT Solutions LLC and Cellify LLC were listed on invoices for services that prosecutors say were not performed.
- Funds from the nominee labs were routed through these companies to obscure the source of proceeds.
- The case highlights potential vulnerabilities in BPO and digital outsourcing infrastructure, where IT services can be exploited in cross-border financial schemes.
Transfers to Pakistan
The indictment further alleges that portions of the fraud proceeds were transferred internationally, including to bank accounts in Pakistan. Federal prosecutors claim funds were routed to accounts held at Meezan Bank in Pakistan, including accounts associated with Nexus BPO Solution and other entities allegedly controlled by Mirza. These international transfers form part of the money laundering charges outlined in the case.
Financial Scope of Alleged Scheme
Prosecutors allege that:
| Alleged Transaction / Recipient | Amount | Period | Notes |
|---|---|---|---|
| Hannan Lab accounts | Over $4,000,000 | Oct 2023 -Jan 2024 | Medicare payments for allegedly fraudulent claims |
| Clinical Laboratory accounts | More than $2,800,000 | May -Jul 2024 | Funds allegedly from false claims submissions |
| Cellify LLC (Israel bank account) | Over $227,000 | Multiple transfers | Alleged cross-border transfers of fraud proceeds |
| Meezan Bank accounts (Pakistan) | Not specified | – | Allegedly includes accounts under Nexus BPO Solution, Axis BPO Solutions, and Burhan Mirza personally |
| Total alleged scheme | Exceeding $10,000,000 | Aug 2023 -Aug 2024 | Aggregate of fraudulent claims and transfers according to the indictment |
Charges and Consequences
Both men, Burhan Mirza and Kashif Iqbal, face multiple federal charges, including health care fraud, money laundering, and making false statements. Prosecutors are seeking a $10 million personal judgment and the forfeiture of any property tied to the scheme.
Case Status
The indictment represents formal allegations by the US government. No convictions have been secured, and the defendants are presumed innocent unless proven guilty in court. As of publication, no public responses from the defendants or their legal representatives have been included in the court record. The case is expected to proceed through the US federal judicial system.
Editor’s Note:
An earlier version of this article included background details that were not connected to the individual named in the indictment. Those references have been removed to maintain accuracy and clarity.
