MASSACHUSETTS — A federal grand jury in the District of Massachusetts returned an indictment on September 3, 2026, charging Erekle Gugava with conspiracy for laundering proceeds in connection with a $1.3 billion health care fraud scheme. The 33-year-old Georgian national is charged with one count of money laundering conspiracy for his alleged role in the operation.

Court documents allege that Gugava was a money launderer for a transnational criminal organization based in Russia and elsewhere. This group is responsible for the largest health care fraud case ever prosecuted by the Department of Justice, orchestrating a multi-billion-dollar scheme targeting Medicare and other health insurers.

Charging documents allege that Gugava owned ND Medical Solutions LLC, a durable medical equipment company located in Pennsylvania, between February and July 2025. During this period of purported ownership, ND Medical submitted at least $1.3 billion in fraudulent durable medical equipment claims to Medicare, private health insurance companies, private employer-sponsored plans, and other insurers. Insurers paid ND Medical approximately $6.5 million.

Gugava facilitated the deposit and transfer of fraud proceeds by opening several bank accounts in the name of ND Medical for which he was the sole signatory. He deposited checks from Medicare supplemental insurers and other health insurers into these accounts. The funds were subsequently transferred to various overseas bank accounts for the benefit of the Organization.

The fraudulent claims relied on the stolen identities of citizens from Massachusetts, across New England, and throughout the United States. Many individuals reported concerns to Medicare and its contractors after receiving explanation of benefit forms reflecting durable medical equipment they did not receive. These forms indicated equipment was purportedly prescribed by doctors the individuals had never visited and delivered from ND Medical, a company with which the individuals were unfamiliar.

The fraud scheme was uncovered by Operation Gold Rush. Assistant Attorney General Colin M. McDonald, U.S. Attorney Leah B. Foley, HHS-OIG Special Agent in Charge Roberto Coviello, FBI Special Agent in Charge Wayne A. Jacobs, USPIS Boston Division Acting Inspector in Charge Justin Page, IRS Criminal Investigations Special Agent in Charge Thomas E. Demeo, HSI New England Acting Special Agent in Charge Jeff Grimming, and DOL-EBSA Regional Director Kelly M. Lawson announced the indictment. HHS-OIG, FBI, USPIS, IRS, HSI, and DOL-EBSA are investigating the case.

"As alleged in this indictment, Gugava allegedly helped facilitate a massive fraud on the American people by moving stolen proceeds through domestic and international financial channels," McDonald said. "Fraud networks cannot function without people willing to launder and transmit their proceeds — and deterring those facilitators is essential to safeguarding taxpayer resources."

McDonald added that the indictment reflects the resolve to hold all participants in fraud networks accountable for their conduct. If convicted, Gugava faces a maximum penalty of 20 years in prison.