BOSTON, Mass.- A Georgian national has been charged in federal court in Boston with allegedly conspiring to launder proceeds from a $1.3 billion health care fraud scheme, according to federal prosecutors.
Erekle Gugava, 33, was indicted by a federal grand jury on one count of money laundering conspiracy. Prosecutors allege Gugava participated in the scheme while illegally in the United States. He fled the country in July 2025, according to the U.S. Attorney’s Office for the District of Massachusetts.
Court documents allege that Gugava served as a money launderer for a foreign-based organization that orchestrated a multi-billion-dollar health care fraud and money laundering scheme known as Operation Gold Rush. The organization was based in Russia and elsewhere, according to prosecutors.
Gugava allegedly owned ND Medical Solutions, LLC, a durable medical equipment company in Pennsylvania, from February 2025 through July 2025.
During that period, ND Medical allegedly submitted at least $1.3 billion in fraudulent durable medical equipment claims to Medicare, private health insurers providing Medicare supplemental coverage, employer-sponsored health plans and union health plans. The insurers allegedly paid ND Medical approximately $6.5 million.
Prosecutors allege that Gugava facilitated the movement of the fraud proceeds by opening several bank accounts in ND Medical’s name, where he was the sole signatory. Checks from Medicare supplemental insurers and other health insurers were allegedly deposited into those accounts before the funds were transferred to overseas bank accounts for the benefit of the organization.
The alleged fraud also involved the identities of people in Massachusetts, across New England and elsewhere in the United States, according to the charging documents.
Prosecutors allege that many of the people whose identities were used were elderly or disabled Americans. Some reported receiving explanation-of-benefits forms showing that they had supposedly received durable medical equipment they did not receive, prescribed by doctors they had never visited and delivered by ND Medical, a company they did not recognize.
The charging documents allege that the organization used insurance reimbursement payments to move fraud proceeds through the U.S. financial system. Because the money originated from Medicare and established private insurance companies, prosecutors allege the proceeds initially appeared legitimate.
The money laundering conspiracy charge carries a maximum sentence of 20 years in prison, up to three years of supervised release and a fine of up to $500,000 or twice the amount of laundered funds, whichever is greater. Any sentence would be imposed by a federal district court judge under applicable statutes and the U.S. Sentencing Guidelines.
Subscribe to The Shrewsbury Post Updates
