Lab Owner Charged in $46 Million Medicare Fraud Case
Klamath Falls facility allegedly billed for tests never performed, federal officials say
PORTLAND, Ore. — The owner of a Klamath Falls clinical laboratory has been charged with healthcare fraud after federal investigators say the company submitted tens of millions of dollars in fraudulent Medicare Advantage claims for laboratory testing services that were never performed.
According to the U.S. Attorney’s Office for the District of Oregon, 34-year-old Jahangeer Ali, a Pakistani national residing in Southern California, faces a criminal complaint tied to an alleged scheme involving Oregon Clinical Laboratory in Klamath Falls.
Court documents state that between June 2025 and January 2026, the laboratory submitted more than $46 million in claims to Medicare Advantage plans. Investigators allege that no providers ordered the testing services listed in the claims, and none of the beneficiaries actually received the tests.
As a result of the alleged fraud, Medicare Advantage plans reportedly paid out more than $28 million.
Authorities say Ali was arrested on February 26, 2026, at Los Angeles International Airport as he prepared to board a flight to Turkey, with an ultimate destination of Pakistan. He made his first court appearance the following day in the Central District of California. After a detention hearing on March 4, he was ordered held pending further proceedings.
A separate detention hearing in the District of Oregon also resulted in Ali being ordered to remain in custody while the case moves forward.
The case is being investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Andrew T. Ho is prosecuting the case.
Officials emphasized that a criminal complaint is only an allegation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Cover photo: AI generated image
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