Federal News
Northern District of California Charges Medicare Fraud Scheme
March 21, 2026
Federal authorities in Northern California have indicted Anar Rustamov for orchestrating a $90 million health care fraud scheme targeting Medicare Advantage programs. The scheme involved submitting thousands of fraudulent claims for medical equipment that was never provided or authorized, exploiting taxpayer-funded health care resources. This enforcement action underscores ongoing federal efforts to detect and prevent fraud in Medicare Advantage, a critical program for providing care to eligible beneficiaries.
- Procurement professionals should be aware of increased scrutiny and enforcement around Medicare Advantage claims and vendor activities.
- Contractors and suppliers must ensure strict compliance with Medicare billing and documentation requirements to avoid legal and financial risks.
- Agencies may enhance due diligence and monitoring of medical equipment vendors and claims to protect program integrity.
- This case highlights the importance of transparency and accountability in government health care procurement and reimbursement processes.
When the Administration declared a War on Fraud, it meant to target exactly this kind of conduct. Rustamov participated in a scheme to steal nearly $100 million in taxpayer funds from a program intended to help those who truly need medical care.
— Craig H. Missakian, United States Attorney
This case alleges a calculated scheme to exploit a critical health care program for personal gain, attempting to siphon tens of millions of dollars through thousands of fraudulent claims for medical equipment. Programs like Medicare Advantage are funded by American taxpayers and exist to provide essential care to those who need it most 6 not to be manipulated for profit.
— Matt Cobo, Acting Special Agent in Charge, FBI
The criminal charges announced today reflect the seriousness with which we pursue schemes that undermine the Medicare Advantage program. The scheme alleged in this indictment targeted funds intended to provide necessary health care services to Medicare enrollees.
— Robb R. Breeden, Special Agent in Charge, HHS-OIG
Agencies
U.S. Attorney's Office, Northern District of California, Federal Bureau of Investigation, U.S. Department of Health and Human Services, Office of the Inspector General
Vendors
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