Klamath Falls Lab Owner Charged in $46M Medicare Fraud Scheme

PORTLAND, Ore. (Mar. 23, 2026) — The owner of Oregon Clinical Laboratory in Klamath Falls has been charged with health care fraud after allegedly submitting tens of millions of dollars in fraudulent claims to Medicare Advantage insurance plans for laboratory tests that were never performed, federal authorities said.

Jahangeer Ali, 34, a citizen of Pakistan, made his first court appearance Feb. 27, 2026, in the U.S. District Court for the Central District of California. Following a detention hearing on March 4, a judge ordered him held pending further proceedings.

According to court documents, from June 2025 through January 2026, Oregon Clinical Laboratory submitted more than $46 million in claims to Medicare Advantage plans for testing services that were neither ordered by medical providers nor performed on patients. Investigators say none of the beneficiaries listed in the claims received the alleged services.

As a result, Medicare Advantage plans paid out more than $28 million on the fraudulent claims, prosecutors said.

Authorities arrested Ali on Feb. 26 at Los Angeles International Airport as he prepared to board a flight to Turkey, with an ultimate destination of Pakistan, according to officials.

A separate detention hearing held Monday in the U.S. District Court for the District of Oregon resulted in Ali being ordered to remain in custody while the case proceeds.

The case is being investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Andrew T. Ho is prosecuting.

A criminal complaint is an accusation, and Ali is presumed innocent unless and until proven guilty in a court of law.


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