Georgian National Charged in $1.3 Billion Medicare Fraud Scheme
Erekle Gugava, a 33-year-old Georgian, has been indicted for participating in a $1.3 billion Medicare fraud operation dubbed “Operation Gold Rush.”
The Justice Department has charged 33-year-old Georgian citizen Erekle Gugava with conspiracy to commit money laundering in connection with a $1.3 billion Medicare fraud case known as “Operation Gold Rush.” According to the indictment, Gugava owned ND Medical Solutions LLC from February to July 2025, during which the company submitted fraudulent claims for durable medical equipment to Medicare and private insurers. Investigators say the operation stole the personal information of elderly and disabled U.S. citizens to fabricate billing for equipment never delivered.
The fraud network, based in Russia and other jurisdictions, allegedly laundered the proceeds through a complex scheme. Gugava, labeled an “illegal alien” by the department, left the United States in July 2025; his current whereabouts are unknown. If convicted, he faces a maximum sentence of 20 years. The case follows a broader crackdown on healthcare fraud, including a recent guilty plea by Renat Abramov for laundering $8 million from Medicare scams.
