An Ohio man pleaded guilty earlier this week to laundering about $3.4 million in illicit healthcare fraud proceeds through multiple regional banks on behalf of a transnational criminal organization.
Court documents say that Eldar Zarbavel, 45, of Pepper Pike, Ohio, was a money launderer for the foreign-based organization that spearheaded the largest healthcare fraud case ever prosecuted by the Department of Justice, as uncovered by Operation Gold Rush.
The organization, based in Russia and elsewhere, orchestrated a multi-billion-dollar healthcare fraud and money laundering scheme to target, exploit, and steal from Medicare and private health insurance companies.
To date, 35 individuals have been charged as part of Operation Gold Rush. Zarbavel is the 16th individual to be convicted for his role in the scheme.
The organization allegedly exploited the United States’ financial system by depositing insurance reimbursement checks from the fraud. The healthcare fraud proceeds were particularly susceptible to laundering because they originated from legitimate sources — Medicare and established private insurance carriers — giving the funds the initial appearance of legitimacy. The organization deployed a range of tactics to circumvent internal controls at multiple banks and in some cases coordinated directly with associates employed at the banks.
The organization armed its nominee owners with false sale documentation and false corporate registration documents. This documentation falsely reflected that the nominee owners maintained beneficial ownership and control of various fraudulent durable medical equipment (DME) companies. This disguised the true beneficial ownership and control of the companies and the financial accounts. Upon opening the financial accounts, the organization funneled fraud proceeds from Medicare and other legitimate healthcare insurers into the accounts as seemingly “clean” money. From there, the organization siphoned off the funds to shell companies and various banks overseas.
Zarbavel opened bank accounts in Northeast Ohio for Royce Medical Supply LLC, a Florida-based DME company. Between July 2022 and July 2024, the organization submitted $1.42 billion in false and fraudulent claims to Medicare and other health insurers through this DME company.
While the Centers for Medicare and Medicaid Services suspended reimbursement on nearly all of these claims, some claims were paid. Between June and July of 2024, Zarbavel, at the direction of members of the organization, facilitated the deposit, transfer, and withdrawal of about $3.4 million in fraud proceeds for the organization's benefit.
Zarbavel pleaded guilty to one count of money laundering. He is scheduled to be sentenced on Dec. 16. He faces a maximum penalty of 20 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Miranda L. Bennett, Acting Deputy Inspector General for Investigations of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Jennifer Runyan of the FBI Detroit Field Office made the announcement.
HHS-OIG and FBI are investigating the case.
Assistant Chief Shankar Ramamurthy, Acting Assistant Chief Sara E. Porter, and Trial Attorneys Brant Cook and Leonid Sandlar of the Criminal Division’s Fraud Section are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal healthcare programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in healthcare fraud schemes.