A February 3, 2026 Department of Justice (“DOJ”) press release states, in part:

A New York man pleaded guilty today to participating in a scheme to launder more than $8 million in health care fraud proceeds through a U.S. bank on behalf of a transnational criminal organization (TCO). This marks the first time the Health Care Fraud Unit has charged and convicted a former bank employee for conspiring to launder health care fraud proceeds.

According to court documents, Renat Abramov, 36, of Brooklyn, a former relationship manager at a U.S. bank branch in Sheepshead Bay, used his position to aid a sophisticated international scheme uncovered by Operation Gold Rush. Abramov, a dual citizen of the United States and Azerbaijan, was a member of a TCO that allegedly submitted more than $10 billion in fraudulent Medicare claims by stealing the identities of over one million Americans, including elderly and disabled citizens in all 50 states.

As alleged in charging documents, the TCO exploited the U.S. financial system using a range of tactics to circumvent internal controls at multiple banks. Abramov helped execute the scheme by opening bank accounts for individuals – many not lawfully present in the United States – who posed as owners of fake medical equipment companies using fake corporate registration documents. The bank accounts were used to deposit fraudulently obtained insurance checks, which appeared legitimate because they came from Medicare and established insurance companies. Once deposited, members of the TCO transferred the money into offshore accounts and cryptocurrency.

Abramov pleaded guilty to conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. He is scheduled to be sentenced on April 20.

…

“Operation Gold Rush” refers to a large 2025 DOJ investigation targeting a transnational criminal organization (“TCO”) behind a multi-billion dollar Medicare fraud scheme involving stolen identities to bill for unreceived medical equipment. The investigation focuses on the largest health care fraud case (in dollars); it has resulted in multiple arrests and asset seizures.

The TCO used stolen Medicare IDs to bill for billions of dollars for DME (e.g., catheters) that patients never received. The scheme often involved foreign straw owners and complex money laundering through shell companies and cryptocurrency.

The TCO operation involved over $10 billion in fraudulent claims, with prosecutors (i) preventing most payments and (ii) seizing assets like cash, luxury vehicles, and real estate.

The DOJ’s Health Care Fraud Takedown in June 2025 led to (i) charges against dozens and (ii) international arrests in Estonia.

The conviction of Mr. Abramov provides valuable lessons to DME suppliers:

• DME Industry is in the Spotlight – Almost all DME suppliers strive to be legally compliant. Their focus is to take care of their patients. Unfortunately, there is a small group of people who “game the system” and generate negative publicity. We saw this with Operation Brace Yourself and we are seeing this with Operation Gold Rush. DME suppliers need to understand that they are in the spotlight. As such, they need to be extra vigilant to absolutely “play by the book.”
• If You See Something, Say Something – We often see this phrase in signs at airports. This phrase applies to DME suppliers. If a supplier sees (or even senses) that somebody is doing something illegal, the supplier should bring it to the attention of someone who has the capacity to address the issue. Examples of people to reach out to are: (i) a health care attorney who can reach out to the appropriate governmental agency, (ii) the state DME association, and (iii) AAHomecare. State associations and AAHomecare know people who can reach out to government enforcement agencies.
• Don’t Even Come Close to an Illegal Arrangement – Mr. Abramov was obviously an integral part of the illegal scheme. He was not a “bit player.” But the lesson for DME suppliers is to not even be a peripheral cog in an illegal scheme. If an illegal scheme is investigated by the government, the government agents will “follow the facts” to wherever the facts lead them.

Jeffrey S. Baird, JD, is chairman of the Health Care Group at Brown & Fortunato, PC, a law firm with a national health care practice based in Texas. He represents pharmacies, infusion companies, HME companies, manufacturers and other health care providers throughout the United States. Mr. Baird is Board Certified in Health Law by the Texas Board of Legal Specialization and can be reached at (806) 345-6320 or [email protected].