Ohio Man Pleads Guilty to Laundering $3.4 Million in Health Care Fraud Proceeds
An Ohio man has pleaded guilty to laundering approximately US$3.4 million in health care fraud proceeds through multiple regional banks on behalf of a foreign-based transnational criminal organisation, the U.S. Department of Justice said on 14 August 2026.
Eldar Zarbavel, 45, of Pepper Pike, Ohio, admitted one count of money laundering. According to court documents, he acted as a money launderer for an organisation based in Russia and elsewhere that is at the centre of Operation Gold Rush, which the Justice Department describes as the largest health care fraud case it has prosecuted. Thirty-five people have been charged in the wider investigation, and Zarbavel is the 16th person convicted.
Nominee owners and false beneficial ownership records
DOJ said the organisation sought to exploit the U.S. financial system by depositing insurance reimbursements generated from fraudulent claims. Because the payments originated from Medicare and established private insurers, the proceeds could initially appear to come from legitimate sources.
To gain access to bank accounts, the organisation allegedly used nominee owners supported by false sale documents and false corporate registration records. Those documents falsely represented that the nominees beneficially owned and controlled fraudulent durable medical equipment companies, disguising the true ownership and control of both the companies and their financial accounts.
Once accounts were opened, fraud proceeds from Medicare and private insurers were channelled into them as apparently legitimate funds. DOJ said the organisation then moved the money to shell companies and bank accounts overseas. Prosecutors also allege that the network used different methods to circumvent internal controls at multiple banks and, in some instances, coordinated directly with associates working inside financial institutions.
US$1.42 billion in false claims linked to one company
Zarbavel’s role included opening bank accounts in Northeast Ohio for Royce Medical Supply LLC, a Florida-based durable medical equipment company. Between July 2022 and July 2024, the organisation submitted approximately US$1.42 billion in false and fraudulent claims to Medicare and other health insurers through Royce Medical Supply. The Centers for Medicare & Medicaid Services suspended reimbursement on nearly all of those claims, although some payments were made.
Between June and July 2024, Zarbavel facilitated the deposit, transfer and withdrawal of approximately US$3.4 million in fraud proceeds for the benefit of the organisation.
Zarbavel is scheduled to be sentenced on 16 December 2026 and faces a maximum penalty of 20 years in prison. HHS-OIG and the FBI are investigating the case.
The case highlights how apparently legitimate insurance reimbursements can be layered through nominee-controlled accounts and shell companies, making beneficial ownership verification and scrutiny of unusual corporate banking activity central to detecting laundering linked to health care fraud.
