A transnational criminal organization based in Russia and elsewhere is accused of submitting more than $10.6 billion in fraudulent Medicare claims for durable medical equipment, including urinary catheters.
The case, known as Operation Gold Rush, involved stolen personal information from more than 1 million Americans across all 50 states, according to the U.S. Attorney’s Office for the Eastern District of New York.
Federal prosecutors said the organization used stolen Medicare beneficiary information and provider credentials to bill for medical supplies that beneficiaries did not request, need, or receive.
The newest update came in the 2026 National Health Care Fraud Takedown, when prosecutors identified Aleksei Parastatov, 50, and Ailar Smirnov, 37, both of Estonia, as supervisory members of the organization charged by superseding indictment.
The Scheme Used Existing Medical Supply Companies
Prosecutors said the organization bought dozens of durable medical equipment companies that were already able to submit claims to Medicare and Medicare supplemental insurers.
The purchases were allegedly made through foreign nationals and others who served as nominee owners. Corporate records made it appear that those owners controlled the companies, while foreign-based leadership actually directed the operation, according to DOJ.
After gaining control of the companies, the organization allegedly submitted billions of dollars in claims for durable medical equipment.
KTSA, citing the New York Post, reported that one Brooklyn location, G&I Ortho Supply in Gravesend, was among the New York hubs tied to the case.
More Than 1 Million Patient Records Were Allegedly Used
The Justice Department said the organization exploited stolen identities and confidential medical information from more than 1 million Americans to submit fraudulent claims.
The 2025 Health Care Fraud Takedown announcement said Operation Gold Rush involved $10.6 billion in fraudulent Medicare claims for urinary catheters and other durable medical equipment.
KTSA reported that the alleged billing used stolen credentials from about 7,000 physicians and that one supplier alone billed more than $250 million for catheters in 2023.
Federal officials said Medicare stopped most of the scheduled payments. DOJ said Medicare paid about $41 million, while Medicare supplemental insurers paid approximately $900 million.
Two New Defendants Were Charged As Supervisors
In the 2026 health care fraud takedown, the Justice Department identified Parastatov and Smirnov as defendants charged with conspiracy to commit health care fraud and wire fraud, and conspiracy to commit money laundering.
Prosecutors said the two men were supervisory members of the organization. They are accused of recruiting, directing, instructing, and supervising nominee owners who operated in the United States and elsewhere.
Both defendants were arrested with help from Estonian law enforcement, according to DOJ.
The charges are allegations. The defendants are presumed innocent unless proven guilty.
The Money Was Allegedly Moved Overseas
Prosecutors said the organization used U.S. financial institutions to deposit checks and move fraud proceeds from company accounts.
The 2025 DOJ announcement said the organization laundered proceeds and used tactics to move money into cryptocurrency and shell companies abroad.
KTSA reported that money moved through accounts in China, Israel, Pakistan, Singapore, Turkey, and Hong Kong.
The “state-sanctioned” description came from outside experts quoted in the New York Post and republished by KTSA. The safer verified description is that prosecutors allege a transnational criminal organization based in Russia and elsewhere ran the scheme.
Medicare Beneficiaries Should Check Their Statements
The case involves a large federal billing scheme, but the warning for ordinary Medicare beneficiaries is practical: check statements for supplies, equipment, or services that were never ordered or received.
Medicare says a Medicare Summary Notice shows services or supplies billed to Medicare, what Medicare paid, and the maximum amount a patient may owe.
Beneficiaries should review Medicare Summary Notices and Explanation of Benefits documents for unfamiliar durable medical equipment claims, including catheters, braces, wound supplies, glucose monitors, or other products they did not receive.
Suspicious Medicare activity can be reported to 1-800-633-4227. Beneficiaries should keep copies of notices, claim numbers, provider names, supplier names, dates of service, and any bills or letters connected to unfamiliar claims.