34-year-old Jahangeer Ali has been charged with mecial fraud as for the past one year he claimed to be operating a medical lab which was nothing but an empty storefront. According to court documents, from June 2025 to January 2026, Ali submitted more than $46 million claims to Medicare Advantage plans but investigators found out that he had no lab. The Pakistani-origin Oregon man claimed he owned and operated the Oregon Clinical Laboratory in Klamath Falls for genetic testing, but it was just an empty storefront.
Ali made his first appearance on February 27, 2026, in the Central District of California. A detention hearing was held on March 4, 2026, in the Central District of California and Ali was ordered detained pending further court proceedings. A detention hearing was held Tiesday in the District of Oregon and Ali was ordered to remain in custody pending further court proceedings.
Came to the US on a student visa, was fleeing to Pakistan
Ali came to the US on a student visa, Oregon Live reported adding that when he ran out of money for college courses, a Pakistani friend lured him into this alleged scam. He also applied for asylum in the US though he was arrested when he was on his way back Pakistan on a one-way ticket via Turkey.
Fake claims, fake beneficiaries: Unpacking Ali’s scam
Medicare Advantage is a private alternative to Medicare which covers hospital, medical prescription drug etc. Medicare Advantage paid out $28 million to the fake lab on the fraudulent claims.
The fraud included using actual provider and beneficiary identities to sumit fake claims and opening bank accounts to receive the refund. The alleged beneficiaries behind the fake claims told investigators they had never heard of the Oregon Clinical Laboratory and did not order any tests through it, according to a federal complaint.
Ali did the same fraud in Utah in 2024 and set up Utah Clinical Laboratory in St George which also amassed money through scam.
To give an example of Ali’s fraud, Oregon Live referred to a particular case where Oregon Clinical Laboratory billed more than $122,000 to Cigna Medicare Advantage insurance plans for lab testing purportedly ordered by a doctor in Tennessee, and the plans paid over $108,000 for the tests. The doctor had never heard of the Oregon lab and never ordered any of the tests, investigators found.
