Federal prosecutors filed a June 11 emergency motion to dismiss an indictment with prejudice against two co-defendants in the COVID-19 testing fraud case connected to Anosh Ahmed, MD, former CFO and COO of Chicago-based Loretto Hospital.
The government’s emergency motion, obtained by Becker’s, asked U.S. District Judge Sharon Coleman to drop charges against Mahmood Khan and Suhaib Chaudhry, who were employed by a Houston-area company that Dr. Ahmed created after his resignation.
Both Mr. Khan’s and Mr. Chaudhry’s attorneys said they do not object to the dismissal.
The original indictment was filed in June 2025. It alleged that Dr. Ahmed and co-defendants submitted approximately $894 million in false COVID-19 testing claims, resulting in roughly $293 million in fraudulent reimbursements.
Mr. Khan was initially charged in five counts of the indictment, while Mr. Chaudhry faced a single count. The motion seeks dismissal with prejudice, meaning neither defendant could be recharged on those counts, according to Cornell Law School’s Legal Information Institute website.
Dr. Ahmed was not mentioned in the emergency motion. On June 9, he sought to join co-defendants in an indictment dismissal, and cited alleged prosecutorial misconduct before the grand jury, which included “vouching,” inflammatory remarks about defendants and mischaracterization of evidence. That alleged misconduct mirrors findings in a separate federal case, United States v. Rabbitt, which collapsed in May after a judge found prosecutors had committed grand jury misconduct.
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