BOSTON – A Georgian national has been indicted by a federal grand jury in Boston for allegedly conspiring to launder the proceeds of a $1.3 billion health care fraud scheme while he was illegally in the United States.
According to the Massachusetts Department of Justice, 33-year-old Erekle Gugava, a Georgian national, was indicted on one count of money laundering conspiracy. Gugava fled the United States in July 2025, after the alleged conduct.
According to court documents, Gugava was a money launderer for the foreign-based organization that spearheaded the largest health care fraud case ever prosecuted by the Department of Justice, dubbed Operation Gold Rush. The organization, based in Russia and elsewhere, orchestrated a multi-billion-dollar health care fraud and money laundering scheme to target, exploit and steal from Medicare and other health insurers.
As alleged in the charging documents, Gugava purportedly owned ND Medical Solutions, LLC (ND Medical), a durable medical equipment company located in Pennsylvania, between February 2025 and July 2025. During the limited five-month span of Gugava’s purported ownership, ND Medical submitted at least $1.3 billion in fraudulent DME claims to Medicare, private health insurance companies that contracted to provide Medicare supplemental insurance policies, private employer-sponsored plans and union health plans. These insurers paid ND Medical approximately $6.5 million.
As part of the scheme, Gugava allegedly facilitated the deposit and transfer of fraud proceeds. Among other things, he allegedly opened several bank accounts in the name of ND Medical – for which he was the sole signatory – and deposited checks from Medicare Supplemental Insurers and other health insurers into the ND Medical bank accounts. The funds were then ultimately transferred to various overseas bank accounts for the benefit of the organization.
As alleged in charging documents, the fraudulent claims relied, in part, on the stolen identities of citizens from Massachusetts, across New England, and throughout the United States to justify the fraudulent billings. Many of these individuals, including elderly and disabled Americans, reported their concerns to Medicare and its contractors after receiving explanation of benefit forms that reflected them purportedly receiving DME that they did not in fact receive, that was purportedly prescribed by doctors whom they had never visited and purportedly delivered from ND Medical—a DME company with which they were unfamiliar.
As further alleged, the organization exploited the United States’ financial system by depositing insurance reimbursement checks from the fraud. The health care fraud proceeds were particularly susceptible to laundering because they originated from legitimate sources. Medicare and established private insurance carriers, giving the funds the initial appearance of legitimacy.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the amount of laundered funds, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah Foley; Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division; U.S. Department of Health and Human Services – Office of the Inspector General Special Agent in Charge Roberto Coviello; Wayne Jacobs, Special Agent in Charge of the Federal Bureau of Investigation, Philadelphia Division; Justin Page, Acting Inspector in Charge of the U.S. Postal Inspection Service Boston Division; Thomas Demeo, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Jeff Grimming, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Kelly Lawson, Acting Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office made the announcement. Assistant U.S. Attorney Meghan Cleary of the Health Care Fraud Unit is prosecuting the case alongside Deputy Chief Kevin Lowell, Assistant Deputy Chief Jim Hayes, and Trial Attorneys Tiffany Wynn and Sarah Rocha of the National Fraud Enforcement Division’s Health Care Fraud Section.
On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
