Iranian National Pleads Guilty to Conspiracy to Commit Healthcare Fraud

PORTLAND, Ore.— Iranian National residing in Coos Bay pleaded guilty today to conspiracy to commit healthcare fraud. Mehrdad Gerami, Age 67, pleaded guilty to conspiracy to commit healthcare fraud. According to court documents, from 2021 to the present, Gerami was the owner and operator of Coastal Diagnostic Testing Group (CDTG). CDTG operates out of Coos Bay, Brookings, Reedsport, Florence, and Roseburg, Oregon. He and his employees overcharged the United States Department of Health and Human Services (HHS), the Veteran’s Health Administration (VA), and numerous private insurance companies for intensive, in-office sleep studies. CDTG billed for the more expensive in-office sleep studies when more inexpensive at-home sleep studies were actually conducted. Additionally, to generate more revenue in certain offices during months of low productivity, defendant instructed staff to falsely bill for sleep studies using patient information despite the studies never occurring on those dates. Gerami oversaw all aspects of the company’s operation and conspired with and directed employees to bill fraudulently. The estimated loss is $2,124,363.41. On June 22, 2026, Gerami was charged by Information with conspiracy to commit health care fraud. Gerami faces a maximum sentence of 10 years’ imprisonment, a fine of $250,000, and 3 years of supervised release. Gerami will be sentenced on January 26, 2027, before a U.S. district court judge. As part of the plea agreement, Gerami has agreed to pay restitution in full to his victims. This case was investigated by Health and Human Services Office of Inspector General and Department of Veterans Affairs Office of Inspector General. Assistant U.S. Attorneys Joseph Huynh and Julia Jarrett are prosecuting the case. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.