Klamath Lab Owner Hit with Fraud Charges

Law enforcement has dropped the hammer on a Pakistani national living in southern California, charging him with massive healthcare fraud. The suspect, identified as Naveed Khan, 52, of San Diego, is accused of orchestrating a scheme that bilked Medicare Advantage insurance plans out of at least $15 million. According to federal prosecutors, Khan was the owner of Oregon Clinical Laboratory in Klamath Falls, Oregon. He stands charged with defrauding Medicare by billing for laboratory testing services that were never performed.

‘Khan and his co-conspirators are accused of submitting fraudulent claims for lab tests that were not ordered or actually performed,’ said Assistant Attorney General John C. Demers of the Justice Department’s Criminal Division. The alleged scheme spanned from at least 2012 to 2020, with Khan and his associates reportedly using the stolen identities of patients to perpetrate their crime.

‘This is a clear-cut case of greed overriding ethics in the healthcare system,’ said U.S. Attorney Brian T. Boyce for the District of Oregon. ‘Khan’s actions not only drained the federal coffers but also denied legitimate patients access to necessary medical services by consuming resources that should have gone to those in genuine need.’

The investigation, which was led by the FBI and the Office of Inspector General (OIG) of the U.S. Department of Health & Human Services, uncovered a web of deception that involved billing for tests like bloodwork and imaging studies, even when there was no patient interaction with these services.

‘The feds are sending a message: healthcare fraud will not be tolerated, regardless of the amount of money at stake,’ said FBI Special Agent in Charge R. Scott erwin. ‘We will continue to work tirelessly to protect Medicare and its beneficiaries from those who seek to exploit our system for personal gain.’

If convicted, Khan faces a host of penalties, including substantial fines and imprisonment. His arraignment is scheduled for later this month.