An Indian national, Mohammed Asif, 35, was sentenced to two years in prison in U.S. District Court in Seattle for his role in a Medicare fraud scheme that resulted in the theft of more than $1 million from taxpayer funds. The announcement was made by U.S. Attorney Charles Neil Floyd.
Asif was arrested on April 10, 2025, at Chicago O’Hare International Airport while attempting to leave the country. He pleaded guilty on September 4, 2025, to conspiracy to commit health care fraud related to American Labworks LLC, a diagnostic testing laboratory based in Everett, Washington.
According to court records and statements at sentencing, Asif and others billed Medicare for COVID-19 and other respiratory illness tests that were never ordered or performed. At the hearing, U.S. District Judge James L. Robart commented on the seriousness of the crime: “was a significant amount of money. It was money that was siphoned out of the Medicare system that is designed to treat the elderly and the poor… (The defendant) lacks moral character as a knowing participant in the fraud… He is someone the public needs to be protected from.”
U.S. Attorney Neil Floyd stated: “Mr. Asif participated in a scheme to steal more than a million dollars from Medicare — funds that are meant to be used for important medical care,” adding that such schemes are not uncommon and harm both taxpayers and government resources.
American Labworks LLC was formed in October 2021 and dissolved in March 2025 according to state records; its license as a Medical Test Site expired in December 2023. Asif was listed as owner and director with both state authorities and Medicare.
From April through December 2024, American Labworks submitted over $8.7 million worth of claims for laboratory services—primarily COVID-19 testing—to Medicare; payments exceeded $1.1 million.
Between June 2024 and March 2025, more than 200 complaints were filed with Medicare about American Labworks’ billing practices—many beneficiaries reported being charged for tests they never received or authorized. Some bills were issued under names of deceased patients or physicians who had died before purported service dates.
Financial investigations showed Asif controlled company accounts and withdrew large sums—including $260,000 withdrawn from an account in May 2024 before returning temporarily to India while under investigation.
Prosecutors say Asif conspired with others; investigations by HHS-OIG and FBI remain ongoing.
Robb R. Breeden of HHS-OIG said: “Billing Medicare for millions of dollars’ worth of laboratory testing that was never furnished is a serious offense that undermines the integrity of our healthcare system and diverts critical resources from those who truly need them… This sentencing reflects HHS-OIG’s continued commitment to working with our law enforcement partners to identify, investigate, and bring to justice those who seek to exploit federal healthcare programs for their own personal gain.”
W. Mike Herrington of FBI Seattle added: “Like so many other fraudsters who take advantage of such situations, Mr. Asif used the COVID-19 pandemic to steal from taxpayers for his own gain… To those would-be criminals who believe their schemes will never be uncovered: as this case shows, the FBI and our partners will carefully follow the money and financial records to ensure justice is served.”
As part of his sentence, Asif must pay $1,174,813 in restitution; he also faces likely deportation after serving his prison term.
The case continues under investigation by HHS-OIG and FBI agents; Assistant United States Attorney Philip Kopczynski prosecuted.
