A Texas businessman has been indicted in St. Louis for allegedly seeking more than $4.5 million in fraudulent Medicare claims for COVID-19 test kits and obtaining over $1.9 million through illegal means.
Rashid Naqvi, 51, of the Houston area, was indicted on September 4 in U.S. District Court in St. Louis on multiple charges, including four counts of wire fraud conspiracy, and one count each of obstruction of a federal audit and conspiracy. Naqvi appeared in court and pleaded not guilty to the charges.
According to the indictment, Naqvi fraudulently obtained $1,974,479 from Medicare between March 2023 and September 2024 by billing for COVID-19 test kits that were sent to individuals who had not requested them. Some of these individuals were deceased, as stated in the indictment. Naqvi is accused of acquiring victims’ Medicare numbers and identifiers without their consent, by paying $488,435 in illegal kickbacks to his co-conspirators. He allegedly used two laboratories under his ownership, Elite Diagnostics Inc. in Missouri and Astro Diagnostics Inc. in Texas, to submit the fraudulent claims.
The indictment further alleges that Naqvi attempted to conceal the fraud by disguising kickback payments as legitimate payments for COVID-19 test kits and by creating a sham contract with a company that supplied the patient information. He also allegedly submitted false documents during a Medicare audit and continued billing Medicare despite receiving calls from patients who stated they did not request the test kits.
In total, Naqvi allegedly sought $4,579,850 in fraudulent Medicare claims.
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, or both. Obstruction of a federal audit and conspiracy each carries a maximum penalty of five years in prison and a $250,000 fine.
“This indictment underscores our commitment to protecting Medicare from exploitation,” said Linda T. Hanley, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General. “Individuals who abuse federal health care programs by misusing personal information or engaging in illegal kickbacks will face serious consequences.”
The FBI and the U.S. Department of Health and Human Services Office of Inspector General investigated the case, with Assistant U.S. Attorney Derek Wiseman prosecuting.
