Pakistani National Charged in $650 Million Health Care Fraud Scheme

The U.S. Justice Department has charged a Pakistani national, Farrukh Ali, in connection with a $650 million health care fraud scheme targeting Arizona's Medicaid program. Ali allegedly conspired with at least 41 substance abuse clinics to bill the state for services that were either never provided, provided improperly, or medically unnecessary. Many patients enrolled in the scheme were recruited from homeless populations or Native American reservations.
Ali, who is not in U.S. custody and is believed to be in Pakistan, faces conspiracy, wire fraud, and money laundering charges. He allegedly received approximately $24.5 million from the scheme, using part of the funds to purchase a home in Dubai.
The case highlights the risks of outsourcing health care services to foreign entities. Ali's company, ProMD Solutions LLC, was organized in Arizona but based in Pakistan, raising questions about accountability and oversight.
Extradition efforts for Ali are uncertain, with Pakistan and the UAE unlikely to cooperate. The case underscores the need for stronger safeguards to prevent exploitation of the U.S. health care system by foreign entities.

Published: 7/3/2025