Federal prosecutors allege Erekle Gugava helped move proceeds from a transnational fraud operation that used stolen identities and submitted at least $1.3 billion in fraudulent medical-equipment claims to Medicare and private insurers.

BOSTON (FNN) — A federal grand jury in Massachusetts has indicted a 33-year-old Georgian national on a money laundering conspiracy charge stemming from an alleged $1.3 billion health care fraud operation, according to the U.S. Department of Justice.

Federal prosecutors allege Erekle Gugava served as a money launderer for a transnational criminal organization accused of orchestrating a multibillion-dollar scheme targeting Medicare and other health insurers.

The Justice Department announced the indictment Friday, Sept. 4.

According to DOJ, the organization, which prosecutors said was based in Russia and elsewhere, was previously identified through Operation Gold Rush, part of what the department has described as the largest health care fraud case it has prosecuted.

DOJ: $1.3 Billion in Allegedly Fraudulent Claims

According to charging documents cited by DOJ, Gugava purportedly owned ND Medical Solutions LLC, a Pennsylvania durable medical equipment company, from February through July 2025.

During that five-month period, prosecutors allege ND Medical submitted at least $1.3 billion in fraudulent durable medical equipment claims to Medicare, private insurers providing Medicare supplemental coverage, employer-sponsored health plans and other insurers.

Those insurers paid ND Medical approximately $6.5 million, according to the Justice Department.

The distinction between the $1.3 billion and $6.5 million figures is significant: DOJ alleges $1.3 billion was billed, while approximately $6.5 million was actually paid to the company.

Prosecutors Allege Money Was Transferred Overseas

Federal prosecutors allege Gugava facilitated the deposit and transfer of proceeds generated by the scheme.

According to DOJ, Gugava opened several bank accounts in ND Medical’s name and was the sole signatory. Checks from Medicare supplemental insurers and other health insurers were allegedly deposited into those accounts.

Prosecutors allege the money was ultimately transferred to overseas bank accounts for the benefit of the transnational organization.

“Fraud networks cannot function without people willing to launder and transmit their proceeds,” Assistant Attorney General Colin M. McDonald of DOJ’s National Fraud Enforcement Division said in the department’s announcement.

McDonald said prosecutors allege Gugava helped move fraud proceeds through domestic and international financial channels.

DOJ: Stolen Identities Used to Support Claims

The alleged scheme also involved stolen identities, according to federal prosecutors.

DOJ said the fraudulent claims relied in part on identities belonging to people in Massachusetts, elsewhere in New England and across the United States.

Some were elderly or disabled Americans who reported receiving insurance explanation-of-benefits forms showing medical equipment they said they never received, according to the Justice Department.

Prosecutors said some records also identified doctors the beneficiaries said they had never visited and listed equipment as coming from ND Medical, a company with which they said they were unfamiliar.

Operation Gold Rush

DOJ said Gugava’s case is connected to Operation Gold Rush, an investigation targeting a transnational organization accused of exploiting Medicare and other insurers.

According to the Justice Department, the organization allegedly used payments originating from legitimate government programs and established insurance companies to facilitate money laundering. Because the payments came from legitimate insurers, prosecutors contend the proceeds initially appeared legitimate.

The department previously identified Operation Gold Rush as part of its broader national effort targeting health care fraud.

Six Federal Agencies Investigating

The investigation involves multiple federal law enforcement and oversight agencies, including:

• Department of Health and Human Services Office of Inspector General
• FBI
• U.S. Postal Inspection Service
• IRS Criminal Investigation
• Homeland Security Investigations
• Department of Labor’s Employee Benefits Security Administration

Prosecutors from DOJ’s National Fraud Enforcement Division’s Health Care Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts are handling the case.

Defendant Faces Up to 20 Years if Convicted

Gugava is charged with one count of conspiracy to commit money laundering.

If convicted, he faces a statutory maximum penalty of 20 years in federal prison, according to DOJ. A maximum statutory penalty does not indicate what sentence would ultimately be imposed if a defendant is convicted.

The Justice Department also described Gugava in its announcement as an “illegal alien from Georgia.” That description reflects DOJ’s characterization of his immigration status in its Sept. 4 press release.

DOJ Expands Federal Fraud Enforcement

The Justice Department said the prosecution is part of its broader federal campaign against fraud involving government benefit programs.

According to DOJ, its Health Care Fraud Strike Force Program has charged more than 6,200 defendants since 2007 in cases involving more than $45 billion in alleged billings to federal health care programs and private insurers.

The department also announced the creation of its National Fraud Enforcement Division earlier this year to coordinate investigations and prosecutions involving fraud against federal programs and the public.

Indictment Contains Allegations

An indictment is a formal accusation and does not establish guilt.

Gugava is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

WASHINGTON (FNN) — Five people in Pennsylvania, New Jersey and Wisconsin face federal charges in separate cases involving alleged illegal voting, false claims of U.S. citizenship or fraudulent voter registration connected to the 2022 or 2024 elections, according to the U.S. Department of Justice.

The Justice Department announced the charges Friday, Sept. 4, saying the defendants include four non-U.S. citizens accused of illegally voting and one U.S. citizen accused of aiding and abetting election-related offenses.

The cases were brought in the Middle District of Pennsylvania, District of New Jersey and Western District of Wisconsin.

DOJ: Election Fraud Will Be Prosecuted

Attorney General Todd Blanche said in the DOJ announcement that election integrity is fundamental to American democracy and emphasized that voting in federal elections is limited to eligible U.S. citizens.

“Election fraud is a serious crime, and it is the duty of the Department of Justice to treat it as such,” Blanche said.

FBI Director Kash Patel said the bureau considers election integrity a priority and would investigate credible allegations of election fraud and illegal voting.

Federal officials also emphasized that the charges are allegations and have not resulted in findings of guilt.

Pennsylvania: Three People Charged

According to the Justice Department, Thomas Holtzman, 68, and his wife, Marisol Guzman, 50, both of Carlisle, Pennsylvania, were indicted by a federal grand jury in connection with allegations that Guzman illegally voted as a non-U.S. citizen in the 2024 election.

DOJ said Guzman was charged with voting as an alien.

Holtzman, a U.S. citizen, was charged with making a false statement of citizenship in order to vote and aiding and abetting, as well as fraudulent registration and aiding and abetting, according to federal prosecutors.

In a separate Pennsylvania case, Katya Rodriguez, 30, a Mexican national living in Harrisburg, was indicted by a federal grand jury on charges related to alleged illegal voting in the 2024 election.

According to DOJ, Rodriguez was charged with making a false statement of citizenship in order to vote, fraudulent registration and voting as an alien.

If convicted, Holtzman faces a statutory maximum of 10 years in prison, Guzman up to one year and Rodriguez up to 11 years, according to the Justice Department. Any sentence would be determined by a federal judge based on applicable law and federal sentencing guidelines.

Homeland Security Investigations investigated the Pennsylvania cases, DOJ said.

New Jersey: Federal Complaint Alleges Noncitizen Voted in 2024 Primary

In New Jersey, Mercedes Alexandra Cardoso of Union County was charged with voting by an alien in a federal election, according to the Justice Department.

The federal complaint alleges Cardoso was not a U.S. citizen when she registered through the New Jersey Division of Elections’ Online Voter Registration System.

According to prosecutors, Cardoso falsely certified on her voter registration application that she was a U.S. citizen.

DOJ said Cardoso allegedly cast a ballot in the June 2024 primary election, which included candidates seeking federal office.

Federal prosecutors said Cardoso entered the United States from Ecuador on a B-2 visa and was not a U.S. citizen when she allegedly voted.

If convicted, Cardoso faces a statutory maximum of one year in prison. Her initial court appearance was scheduled for Sept. 8, according to DOJ.

The FBI, Homeland Security Investigations and U.S. Citizenship and Immigration Services investigated the case.

Wisconsin: 2022 Election Vote Leads to Federal Charge

In Wisconsin, Jesus Javier Jurado Garcia, 25, a Mexican national living in Beloit, was charged Sept. 2 with illegally voting as an alien in the November 2022 election, according to the Justice Department.

A federal criminal information alleges Jurado Garcia knew he was not a U.S. citizen when he voted on Nov. 8, 2022, in an election that included races for the U.S. Senate and House of Representatives.

If convicted, Jurado Garcia faces a statutory maximum sentence of one year in prison, DOJ said.

Federal Officials Emphasize Election-Law Enforcement

U.S. attorneys in all three jurisdictions used the announcement to emphasize federal enforcement of election laws.

U.S. Attorney Brian Miller for the Middle District of Pennsylvania said his office would prosecute people accused of illegally voting in federal elections as well as those accused of facilitating illegal voting.

U.S. Attorney Robert Frazer for the District of New Jersey said the federal government has a responsibility to safeguard elections and investigate alleged violations of federal election law.

U.S. Attorney Chadwick M. Elgersma for the Western District of Wisconsin similarly said his office is committed to enforcing federal election laws.

Homeland Security Investigations also said its agents worked with federal partners to investigate the alleged conduct and support the prosecutions.

Charges Remain Allegations

The cases are at the charging stage.

A criminal complaint, indictment or information contains allegations and does not establish that a defendant committed a crime. All five defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.