Former Loretto Hospital CFO pleads not guilty in $290 million COVID-19 testing fraud scheme

A former executive for Loretto Hospital pleaded not guilty on Monday to federal fraud and money laundering charges, after he was extradited from Serbia.

Former Loretto Hospital chief financial officer Anosh Ahmed is accused of stealing $290 million from the federal government through fake COVID-19 testing claims during the pandemic.

Prosecutors said Ahmed fled the country when they learned he was under investigation, but he was arrested in Serbia earlier this year and brought back to the U.S.

There are questions whether this case will move forward. Two of Ahmed's co-defendants have had their charges dismissed because of possible misconduct by federal prosecutors.

Ahmed also is accused in a separate indictment of plotting with two others to embezzle more than $15 million from Loretto Hospital. He pleaded not guilty in that case last week.

Federal prosecutors secured new indictments in both cases against Ahmed last week from a different grand jury.