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Aiza Moraña

$1.3 Billion Medicare Fraud Allegations: DOJ Says Patients' Forms Listed Doctors They Had Never Seen and Equipment They Never Got

Medicare DOJ United States Department of Justice US Department of Justice Justice Department

DOJ says patients flagged unfamiliar doctors and undelivered equipment in a Medicare fraud case linked to money laundering charges against Erekle Gugava (Credit: Via U.S Department of Justice)

The US Department of Justice says some Medicare patients received Explanation of Benefits notices listing doctors they had never seen and medical equipment they say they never received, as part of what prosecutors describe as a $1.3 billion (about £962 million) fraud scheme.

The department detailed those allegations on 4 September 2026 when announcing a Massachusetts indictment charging Erekle Gugava with conspiracy to commit money laundering linked to claims submitted to Medicare and other insurers.

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