Two California men have been indicted on federal charges of health care fraud and aggravated identity theft for allegedly submitting more than $3.5 million in fraudulent Medicare claims through shell companies.
Mohsin Khan, 40, of Bakersfield, and Nouman Mustafa, 36, of Torrance, were indicted by a federal grand jury in the Eastern District of California on September 17, 2026. Both men are Pakistani nationals with dual U.S. citizenship who previously worked as security guards, warehouse managers, and licensed insurance agents.
According to prosecutors, from January 2025 through January 2026, the men created multiple shell companies designed to appear as legitimate durable medical equipment providers despite having no storefronts, warehouses, or legitimate operations. They then submitted the fraudulent Medicare claims through these entities.
Authorities noted that the companies operated on a short-term basis. "They typically relied on one company for only a few weeks or months until claims began getting denied for suspected fraud before shifting to the next company," according to official descriptions of their scheme.
Approximately 70 percent of the proceeds from the fraudulent claims were sent to contacts in Pakistan and elsewhere who allegedly supplied information used to file the claims.
Mustafa was arrested on February 11, 2026, at Los Angeles International Airport while attempting to board a one-way flight to Pakistan. Khan was arrested on September 29, 2026, at his Bakersfield home.
Each health care fraud count carries a potential sentence of up to 10 years in prison and a $250,000 fine. Aggravated identity theft counts carry a mandatory minimum sentence of two years.
