How a Texas-linked network fueled an alleged $3 billion Medicare fraud scheme
What started as suspicious charges for catheters on seniors' Medicare statements has grown into a massive international fraud case, with prosecutors alleging a Texas‑linked network generated billions in false claims, according to a federal indictment unsealed in the Southern District of Florida.
Ibrahim Khaldoon Hilmi and his alleged co-conspirators operated shell companies that billed Medicare and private insurers for medical equipment that was never ordered or delivered, federal prosecutors said.
Hilmi was arrested in Northern Cyprus and returned to the United States last week. One of his alleged co-conspirators is Nika Machutadze, who was arrested earlier this year in Texas.
Prosecutors allege that Machutadze and Hilmi, as part of a larger criminal network, acquired a legitimate Florida medical supply business and then used it to fraudulently bill insurers. According to court records, they allegedly changed ownership names on paperwork to conceal who was actually running the operations.
Hilmi's arrest followed months of reporting by the CBS News Texas I-Team, which exposed an Austin-area medical supply company tied to the criminal network.
Investigators said Centurion Superior Medical began submitting large batches of claims in late September 2025, shortly after Machutadze became the company's listed owner. In just over a month, the company submitted claims for 78,663 items, mostly intermittent urinary catheters.
In January, when the I-Team visited Centurion's Austin office, employees said they had no knowledge of fraudulent activity. Large stacks of medical records and mail filled the small office.
A few weeks later, the I-Team returned to find those same employees placing what appeared to be medical records into large plastic trash bags.
Investigators believe the broader operation submitted more than $3 billion in fraudulent claims, making it one of the largest healthcare fraud schemes ever prosecuted.
Authorities allege the group moved money rapidly through U.S. bank accounts before wiring funds overseas in an effort to conceal the proceeds.
Machutadze was arrested in January in Austin apartment. According to court records, investigators believe he was trying to leave the country.
Hilmi, however, fled the United States but was later arrested.
His arrest was part of a broader nationwide crackdown announced by the Department of Justice targeting healthcare fraud. Officials say more than 450 defendants have been charged in recent enforcement actions.
