General Discussion

While Medicare eventually suspended payments, supplemental insurers continued issuing reimbursements, allowing millions of dollars to flow into company bank accounts, according to the complaint. Authorities allege those funds were quickly transferred overseas, primarily to shell companies in Hong Kong, with little evidence of legitimate medical business expenses.


Machutadze is accused of conspiring with others to conceal the source of the proceeds through a network of domestic and foreign accounts. Investigators said they learned in January that he had purchased international airline tickets while the investigation was ongoing. According to federal court records, Machutadze’s destination was the United Arab Emirates.