Oregon Business Owners Charged in National Health Care Fraud Takedown Targeting Medicare and Veterans

Oregon is at the center of an unprecedented global crackdown on medical fraud, with federal prosecutors charging two local business owners for running multi-million dollar schemes that target Medicare and veterans.

2 Oregonians Charged In National Health Care Fraud Case

Two local cases form part of the Department of Justice’s 2026 National Health Care Fraud Takedown. This data-driven blitz has swept up 455 defendants nationwide and uncovered over $6.5 billion in false claims.

The District of Oregon unsealed criminal charges against two primary suspects:

• $15 Million Genetic Testing Fraud: Jahangeer Ali, 34, owner of Oregon Clinical Laboratory, faces health care fraud charges for submitting millions in fraudulent genetic testing claims to Medicare Advantage plans. Federal documents show that the physicians and patients listed on the bills had never even heard of the laboratory, and no testing was ever performed.
• $2.1 Million Sleep Study Conspiracy: Mehrdad Gerami, 67, owner of Coos Bay-based Coastal Diagnostic Testing Group, was charged with fraud targeting the Veterans Health Administration and private insurers. Gerami allegedly billed for expensive in-office clinical sleep studies that were actually conducted at patients’ homes, or skipped entirely.

This year’s takedown signals a shift toward aggressive, international asset recovery and swift administrative action.

Backed by President Trump’s Task Force to Eliminate Fraud- chaired by Vice President Vance- the full-scale operation has already seized over $182 million in cash, luxury vehicles, and jewelry.

Beyond criminal charges, other actions included:

• 48 Civil Monetary Payment settlements totaling over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services seeking more than $10 billion in payments to the Medicare Trust Fund.
• Civil charges against 13 defendants for $14.8 million in health care fraud schemes, and civil settlements with 31 defendants totaling $23 million.
• 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances.

Unprecedented international coordination also led to the apprehension of fugitives hiding out as far as the Philippines and Estonia.