Georgian national charged with laundering proceeds of $1.3 billion health care fraud scheme
Federal prosecutors in Boston say Erekle Gugava, 33, moved money for a Russia-based organization that billed Medicare and private insurers $1.3 billion through a Pennsylvania medical equipment company. He left the United States in July 2025 and has not been arrested.
A federal grand jury in Boston has indicted a Georgian national on a charge of money laundering conspiracy, accusing him of moving the proceeds of a $1.3 billion health care fraud scheme while he was in the United States illegally, the U.S. attorney's office said Aug. 4.
Erekle Gugava, 33, left the United States in July 2025, after the conduct described in the indictment, prosecutors said. The release does not say whether he has been arrested.
According to court documents, Gugava laundered money for a Russia-based organization behind what the Justice Department calls the largest health care fraud case it has ever prosecuted, an investigation known as Operation Gold Rush.
Prosecutors said Gugava was the purported owner of ND Medical Solutions, a Pennsylvania medical equipment company, from February 2025 to July 2025, and that during those five months the company billed Medicare, private insurers, employer plans and union health plans at least $1.3 billion in fraudulent claims. Insurers paid about $6.5 million, prosecutors said.
He opened several bank accounts in the company's name, was their only signatory, and deposited insurance checks that were later sent to overseas accounts, according to the indictment. Prosecutors said the claims relied in part on the stolen identities of people in Massachusetts, elsewhere in New England and across the country, including elderly and disabled patients who reported receiving benefit statements for equipment they never got.
The charge carries up to 20 years in prison. The allegations are unproven, and Gugava is presumed innocent unless and until he is convicted.
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