Tennessee Docs Bilked Medicare $6.5M in Ghost Billing Scheme

NASHVILLE, TN – A Hendersonville doctor and her office manager husband are facing a slew of federal charges today as part of the Department of Justice’s massive 2025 National Health Care Fraud Takedown. Xuhan Zhang a/k/a “Shelia Zhang” a/k/a “Xuhan Mei, 62, and Jing Qi Mei, 65, are accused of running a brazen scheme to siphon off millions from Medicare and Blue Cross Blue Shield by billing for inpatient hospital services that simply never happened.

According to an indictment unsealed today, the pair allegedly submitted around $20 million in fraudulent claims between 2017 and 2025, successfully pocketing approximately $6.5 million. The scam involved billing for services even after the hospital in question had closed, for patients already residing in nursing homes, and, shockingly, for individuals who were already deceased. The indictment further alleges instances of billing for services exceeding 24 hours in a single day – a clear indicator of systemic fraud.

“Our office will vigorously pursue those who would defraud American taxpayers by these illegal health care fraud schemes,” declared Acting United States Attorney Robert E. McGuire for the Middle District of Tennessee. “The charges announced today are just our latest effort to crack down on health care fraud in the nation’s health care capital. Nashville is a great place for honest health care business and a terrible place for those who would commit health care fraud.” McGuire’s office is leading the prosecution alongside Senior Litigation Counsel Robert Levine, Assistant U.S. Attorney Sarah Bogni, and Assistant U.S. Attorney Stephanie Toussaint, who is handling asset forfeiture.

This bust is part of a national takedown that brought charges against a staggering 324 defendants, alleging a combined $14.6 billion in false billings and the diversion of over 15.6 million illegally obtained pills. Attorney General Pamela Bondi minced no words: “This administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.” The federal government has already seized over $245 million in assets across the country, including cash and luxury vehicles.

In the Hendersonville case, authorities haven’t just stopped at charges. The Asset Forfeiture Unit has already seized approximately $6,000,000 from bank accounts and, adding insult to injury, a brand-new Tesla CyberTruck. Zhang and Mei are facing charges of conspiracy to commit health care fraud, health care fraud, false statements related to health care, aggravated identity theft, a money laundering conspiracy, and money laundering. If convicted on all counts, they could face significant prison time and hefty fines.

“The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting,” stated HHS-OIG Acting Inspector General Juliet T. Hodgkins. “Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable.” This case serves as a stark reminder that those who exploit the healthcare system for personal gain will face the full force of the law. The Health Care Fraud Unit’s National Rapid Response, Florida, Gu