Islamabad/Washington, July 4, 2025: The U.S. Department of Justice has charged Farrukh Ali, a Pakistani national, in connection with a massive $650 million Medicaid fraud scheme—one of the largest health care fraud cases in U.S. history.
According to DOJ officials, Ali operated through ProMD Solutions LLC, a billing and credentialing company registered in Arizona but managed from Pakistan. The company supported more than 41 fake addiction treatment clinics, which collectively submitted fraudulent claims to the Medicaid system.
The clinics allegedly targeted vulnerable populations, including Native American communities and homeless individuals, luring them with false promises of addiction treatment, food, and housing. Most services were reportedly never rendered or were not medically necessary.
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The operation exploited the American Indian Health Program (AIHP) in Arizona to receive higher reimbursements. Ali’s company managed enrollment, coding, and billing—and collected a 5% commission on Medicaid disbursements.
Authorities say the clinics also paid kickbacks to sober home operators to funnel patients into the scheme, allowing the fraud cycle to continue.
The charges are part of a broader DOJ operation targeting health care fraud nationwide. The full sweep involves nearly 200 individuals, with $14.6 billion in intended false claims and $2.9 billion in actual financial losses.
Farrukh Ali is not currently in U.S. custody and is believed to be in Pakistan. He faces multiple federal charges, including conspiracy, wire fraud, and international money laundering.
The case is under joint investigation by the DOJ, FBI, HHS-OIG, CMS, and DEA, and forms part of the largest healthcare fraud crackdown in U.S. history.
