News|Articles|September 8, 2026

Man charged with laundering proceeds of $1.3B Medicare fraud; GLP-1 prescribing is climbing among grade schoolers; a dementia clue in the voice — Morning Medical Update

Fact checked by: Keith A. Reynolds
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Key Takeaways

  • A Pennsylvania DME entity allegedly generated $1.3 billion in fraudulent claims over five months using stolen beneficiary identities and fabricated physician encounters, with approximately $6.5 million reimbursed.
  • Money laundering conspiracy charges carry up to 20 years’ imprisonment, and the case is tied to Operation Gold Rush, described as the DOJ’s largest health care fraud prosecution.
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Man charged with laundering proceeds of $1.3B Medicare fraud

Prosecutors say a durable medical equipment company billed $1.3 billion in five months and collected $6.5 million.

A federal grand jury in Massachusetts has indicted Erekle Gugava, 33, on one count of money laundering conspiracy tied to a $1.3 billion health care fraud scheme, the U.S. Department of Justice said. Prosecutors allege Gugava owned ND Medical Solutions LLC, a Pennsylvania durable medical equipment company, from February to July 2025, and that during those five months it submitted at least $1.3 billion in fraudulent claims to Medicare, Medicare supplemental insurers and employer-sponsored plans. Insurers paid roughly $6.5 million.

The indictment alleges the claims relied on stolen patient identities and listed equipment prescribed by physicians the beneficiaries had never visited. Many of them, including older and disabled adults, reported the billing after receiving explanation of benefits forms for products they never received. The Justice Department said the case grew out of Operation Gold Rush, which it describes as its largest health care fraud prosecution. Gugava faces up to 20 years in prison if convicted. An indictment is an allegation, and he is presumed innocent until proven guilty.

GLP-1 prescribing is climbing among grade schoolers

Use remains uncommon in children ages 8 to 11, but prescriptions have risen 310-fold since 2019.

Prescriptions of glucagon-like peptide-1 (GLP-1) receptor agonists for children ages 8 to 11 with obesity and without diabetes rose 310-fold between 2019 and 2026, according to an observational study published in Pediatrics. Researchers at NYU Langone Health analyzed Epic Cosmos electronic health record data covering more than 300 million patients and identified 20,282 children in that age group who received a prescription. Use stayed less common than among adolescents ages 12 to 17, at 0.6% versus 0.9%.

Most had severe obesity (93.7%) and at least one obesity-related condition (65.2%), including high cholesterol, high blood pressure and sleep apnea. Children in upper-income communities were 55% more likely to be prescribed the drugs. The analysis describes prescribing patterns and does not assess outcomes. Lead investigator Babak J. Orandi, M.D., Ph.D., said in a statement that long-term monitoring is needed to confirm the drugs remain safe and effective in this age group. Coauthor Allan B. Massie, Ph.D., said prescribing patterns already show a divergence in who can obtain the drugs.

A dementia clue in the voice

Patients with a voice disorder and no hearing loss had a 58% higher risk of cognitive impairment.

Patients with a diagnosed voice disorder and no hearing loss had a 58% greater risk of cognitive impairment or dementia than patients with neither condition, according to an analysis of 833,417 primary care patients published in the Journal of Voice. Drexel University researchers compared patients diagnosed with voice or hearing disorders against matched controls, starting at least a year after diagnosis. Hearing loss alone was associated with a 27% increased risk.

The findings are associative and do not show that voice disorders cause cognitive decline. Patients with both conditions were also older and had higher rates of high blood pressure, heart disease and Type 2 diabetes. Senior author Robert Sataloff, M.D., said in a statement that voice problems may reduce participation in social activity that supports cognition, a pattern already seen in patients with Parkinson's disease. The authors called for research on whether treating voice disorders slows decline.