On March 23, 2026, the U.S. Department of Justice announced that Jahangeer Ali, a 34-year-old Pakistani national residing in Southern California, was charged with healthcare fraud. He allegedly ran a scheme through Oregon Clinical Laboratory in Klamath Falls, submitting over $46 million in fake claims to Medicare Advantage plans from June 2025 to January 2026 for genetic testing services that were never ordered or performed. Insurers paid out more than $28 million.
The lab was reportedly nothing more than an empty storefront. Ali was arrested at Los Angeles International Airport on February 26, 2026, while attempting to flee to Pakistan via Turkey. He remains in federal custody. Assistant U.S. Attorney Andrew T. Ho is prosecuting the case, which is under investigation by HHS-OIG and the FBI.
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