A Pennsylvania medical supplier allegedly submitted $1.3 billion in fraudulent health care claims during a five-month period, according to the Department of Justice.
Federal prosecutors charged Erekle Gugava, 33, a Georgian national, with conspiring to launder proceeds from the alleged scheme.
Gugava purportedly owned ND Medical Solutions LLC from February through July 2025. During that period, the durable medical equipment company allegedly billed Medicare, supplemental insurers, employer-sponsored plans and other insurers for equipment that patients never received.
Insurers paid ND Medical approximately $6.5 million.
Prosecutors allege the claims relied partly on stolen identities belonging to elderly and disabled Americans. Many beneficiaries reportedly contacted Medicare and its contractors after receiving benefit statements listing equipment they had never requested, doctors they had never visited and a supplier they did not recognize.
Gugava allegedly opened several ND Medical bank accounts, deposited insurance payments and helped transfer the proceeds to overseas accounts benefiting a transnational criminal organization based in Russia and elsewhere.
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