Introduction to the Scandal
A former Loretto Hospital executive is accused of defrauding the federal government of hundreds of millions of dollars in reimbursements for fake COVID-19 tests, according to a new federal indictment.
Anosh Ahmed, Loretto’s onetime chief financial officer who resigned in 2021 amid a series of COVID-19 controversies, is already facing federal charges alleging that he plotted with others to embezzle more than $15 million from the hospital.
Ahmed is now accused of participating in a fake testing scheme that netted him and his co-conspirators $300 million in federal funds, according to the latest federal indictment.
He was charged with 23 counts that included wire fraud, a conspiracy involving kickbacks and bribes, and other crimes.
The Accused Individuals
Mahmood Sami Khan and Suhaib Ahmad Chaudhry, who along with Ahmed owned several non-operational Texas labs, were also charged in the indictment, as was Mohamed Sirajudeen, who owned a Chicago-based clinical laboratory.
Between April 2021 and June 2022, Ahmed allegedly stole patient data from the small West Side hospital and used the information to seek federal reimbursement for COVID-19 tests, reportedly collected from uninsured individuals, which were never actually performed
The group used Sirajudeen’s O’Hare Clinical Lab Services Inc., and the non-operational Texas labs to submit the claims, the indictment states.
As part of the scheme, Ahmed continued to collect COVID-19 samples on behalf of Loretto, even though he was no longer affiliated with the hospital, to make the purported tests appear legitimate.
The Scheme and Its Aftermath
In total, Ahmed and others sought reimbursement for more than $894.5 million in claims and received payments in excess of $293 million.
Ahmed is also alleged to have received more than $147 million in kickbacks from Sirajudeen’s lab.
Ahmed remains a fugitive as of Tuesday afternoon, according to the U.S. attorney’s office.
Chaudhry and Khan were arrested Tuesday morning in the Houston area, and Sirajudeen was expected to voluntarily surrender.
The chief executive of Loretto did not respond to a request for comment.
Background and Previous Controversies
Controversy at Loretto Hospital was first uncovered by Block Club Chicago in 2021. The site reported that the hospital vaccinated Trump Tower employees, where Ahmed had a condo, and held another event at a high-end Gold Coast watch store, Geneva Seal Fine Jewelry & Timepieces, he frequented.
Ahmed resigned soon after the controversies were brought to light.
Last summer, Ahmed and two others were charged in an alleged embezzlement scheme that lasted between 2018 and 2022.
The three allegedly prepared and submitted requests for vendor payments that falsely claimed the hospital owed money for goods and services it had not received.
They directed the money to entities they controlled and prompted the hospital to make payments through its computerized vendor payment system, according to the indictment.
Conclusion
The accusations against Ahmed and his co-conspirators highlight the need for increased scrutiny and oversight in the healthcare industry, particularly in relation to COVID-19 testing and federal reimbursements. The scheme allegedly perpetrated by Ahmed and others not only defrauded the federal government of hundreds of millions of dollars but also undermined trust in the healthcare system.
FAQs
Q: Who is Anosh Ahmed and what is he accused of?
A: Anosh Ahmed is a former Loretto Hospital executive accused of defrauding the federal government of hundreds of millions of dollars in reimbursements for fake COVID-19 tests.
Q: How much money did Ahmed and his co-conspirators allegedly receive in federal funds?
A: Ahmed and his co-conspirators allegedly received payments in excess of $293 million.
Q: What is the status of Ahmed’s case?
A: Ahmed remains a fugitive as of Tuesday afternoon, according to the U.S. attorney’s office.
Q: Were there any previous controversies surrounding Ahmed and Loretto Hospital?
A: Yes, controversy at Loretto Hospital was first uncovered by Block Club Chicago in 2021, leading to Ahmed’s resignation.
