Two California men are accused of submitting more than $3,500,000 in fake Medicare claims through short-lived durable medical equipment companies.
A federal grand jury in the Eastern District of California indicted Mohsin Khan, 40, of Bakersfield, and Nouman Mustafa, 36, of Torrance, on September 17th of 2026 on multiple counts of health care fraud and aggravated identity theft, reports the San Joaquin Valley Sun.
Both men are Pakistani nationals with dual U.S. citizenship who previously worked as security guards, warehouse managers and licensed insurance agents.
From January 2025 through January 2026, prosecutors say they created shell companies designed to look like legitimate durable medical equipment providers but with no storefronts, warehouses or legitimate operations, then submitted more than $3,500,000 in fraudulent Medicare claims.
Officials described how quickly the companies turned over.
“They typically relied on one company for only a few weeks or months until claims began getting denied for suspected fraud before shifting to the next company.”
Roughly 70 percent of the proceeds were sent to contacts in Pakistan and elsewhere who allegedly supplied information used to file the claims.
Mustafa was arrested on February 11th of 2026 at Los Angeles International Airport while trying to board a one-way flight to Pakistan, while Khan was arrested on September 29th of 2026 at his Bakersfield home.
Each health care fraud count carries up to 10 years in prison and a $250,000 fine, with a mandatory minimum of two years for each aggravated identity theft count.
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