A Texas businessman has been indicted in St. Louis for allegedly attempting to defraud Medicare of more than $4.5 million through fraudulent claims for COVID-19 test kits, securing over $1.9 million in the process.
Rashid Naqvi, 51, from the Houston area, faced a U.S. District Court in St. Louis on September 4 on charges including four counts of wire fraud conspiracy and one count each of obstruction of a federal audit and conspiracy. Naqvi pleaded not guilty during his court appearance on Wednesday.
According to the indictment, between March 2023 and September 2024, Naqvi billed Medicare for numerous COVID-19 test kits sent to patients who had not requested them, some of whom were deceased. The indictment alleges that Naqvi obtained victims’ Medicare numbers and identifiers without their knowledge or consent by paying $488,435 in illegal kickbacks to co-conspirators. He reportedly used two laboratories he owned—Elite Diagnostics Inc. in Missouri and Astro Diagnostics Inc. in Texas—to submit false claims to Medicare.
The indictment further accuses Naqvi of attempting to conceal his scheme by disguising kickback payments as legitimate transactions for COVID test kits, creating sham contracts with companies supplying information, and submitting false documents during a Medicare audit. Despite receiving calls from patients stating they did not request or want the test kits, Naqvi allegedly continued submitting false claims to Medicare.
It is important to note that charges set forth in an indictment are accusations and do not constitute proof of guilt; every defendant is presumed innocent until proven guilty.
Wire fraud carries a penalty of up to 20 years in prison and a $250,000 fine per count if convicted. Obstruction of a federal audit and conspiracy each carry penalties of up to five years in prison and a $250,000 fine.
“Today’s indictment reflects our unwavering commitment to safeguarding Medicare and ensuring that its resources are used appropriately,” said Linda T. Hanley, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “There are serious consequences for individuals who seek to manipulate federal health care programs by exploiting enrollees’ personal information and participating in illegal kickbacks.”
The FBI alongside the U.S. Department of Health and Human Services Office of Inspector General conducted the investigation into this case while Assistant U.S. Attorney Derek Wiseman is prosecuting it.
