Pakistani National Charged in Massive $650 Million Arizona Medicaid Fraud Scheme Targeting Native American Communities

Image: Jihad Watch

In a sweeping healthcare fraud case that highlights vulnerabilities in the U.S. system, the Department of Justice has announced criminal charges against Farrukh Ali, a Pakistani national, for allegedly masterminding a $650 million fraud scheme. The operation primarily targeted Arizona’s Medicaid program, known as the Arizona Health Care Cost Containment System (AHCCCS), which offers addiction treatment and other healthcare services to Native American populations.

According to court documents, Ali is accused of conspiring with at least 41 substance abuse treatment centers to submit fraudulent claims for services that were either never rendered, improperly billed, or medically unnecessary. Investigators say many of the individuals falsely enrolled in these programs came from homeless communities and Native American reservations — and were not provided legitimate care despite being listed as recipients of treatment.

Ali, who currently remains at large and is believed to be residing in Pakistan, has been charged with conspiracy to commit healthcare fraud, wire fraud, and money laundering. U.S. officials have confirmed that he is not in custody, and efforts to contact him for comment have been unsuccessful.

The fraudulent operation was allegedly facilitated through Ali’s company, ProMD Solutions LLC, a medical billing and credentialing firm registered in Arizona but operated from Pakistan. The company provided backend services to healthcare providers — including credentialing, enrollment, medical coding, and billing support — enabling fraudulent claims to be seamlessly submitted to AHCCCS.

Federal prosecutors say Ali personally received at least $24.5 million in Medicaid reimbursements through the scheme. A portion of these illicit gains — approximately $2.9 million — was allegedly used to purchase a luxury residence on a golf estate in Dubai, United Arab Emirates.

“This case underscores the dangers of outsourcing critical elements of our healthcare infrastructure,” a law enforcement official commented. “It is now possible for foreign entities and individuals who never set foot on U.S. soil to exploit our healthcare systems for vast profits, all while remaining outside the reach of American law enforcement.”

The case is part of a broader federal effort to crack down on Medicaid fraud, particularly schemes that exploit vulnerable populations and siphon resources from programs intended to serve Indigenous and underserved communities. Authorities are continuing to investigate the broader network of clinics and individuals involved in the operation.

(This Article was originally published by Jihad Watch)