Nepal Police’s Central Investigation Bureau first uncovered the scheme in 2018 and has recently reopened the case. Authorities allege the operation generated roughly $20 million in fraudulent insurance claims.
According to investigators, guides would target climbers from countries such as the United Kingdom and Australia, where verifying incidents in Nepal can be more difficult for insurers. In some cases, climbers experiencing mild altitude sickness were reportedly encouraged to take acetazolamide with excessive amounts of water, worsening their symptoms. In another instance, a guide was accused of adding baking powder to a climber’s food to induce illness.
Once symptoms escalated, guides would call for helicopter evacuations, triggering expensive rescue and medical claims. Investigators also say some climbers were encouraged to fake illness to avoid descending the mountain on foot.
Authorities allege that parts of the broader system, including helicopter operators and hospitals, were involved in falsifying the need for evacuations and treatment. Reports indicate that two hospitals, Era International Hospital and Shreedhi International Hospital, received millions of dollars tied to fraudulent rescue operations.
Between 2022 and 2025, nearly 4,800 international climbers were reported to be affected or involved in the schemes, and 32 guides have been charged as the investigation continues."
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Carlos Aguilar Reynoso now faces predatory sex assault and sexual abuse charges after federal authorities revealed the horrifying details of the case.
Local police originally charged him with child endangerment but worked with ICE to keep him behind bars while they built the full case against him.
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The parents, Qiu Qin Zou and Jia Zhang Zheng, were arrested by immigration officials in March after a deportation order against them had not been enforced for nearly 30 years.
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Do the math... only 8 arrested so far and it's over 50 Million bucks... and a couple running a fake hospice - fraud of 7.45 million - and that's just ONE couple!
The DOJ announced in a press release, “Eight defendants, including three nurses, a chiropractor, and a psychologist, have been arrested on federal charges that they schemed to defraud the nation’s health care system out of more than $50 million.” This includes arrests for Medicare hospice care fraud, private health care plan fraud, and immigration health care fraud.
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