Russian-run Texas medical supplier at center of massive Medicare billing scheme, feds say

Austin medical supply business accused of Medicare fraud, funneling millions overseas, federal complaint says

Published on Feb. 24, 2026

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A small Austin medical supply business, Centurion Superior Medical, is at the center of an alleged Medicare billing scheme that prosecutors say moved quickly and funneled millions of dollars overseas. Nika Machutadze, a Russian citizen living in Texas, is charged with conspiracy to commit money laundering. Investigators say Centurion billed Medicare and other health programs for urinary catheters that patients did not need or receive, and the proceeds were routed through U.S. bank accounts before being wired to Hong Kong.

Why it matters

This case highlights ongoing concerns about Medicare fraud, particularly schemes involving shell companies and overseas money transfers. It also raises questions about vulnerabilities in the Medicare payment system that allow private insurers to continue issuing payments even after Medicare suspends its own payments.

The details

Centurion began submitting large batches of claims in late September 2025, shortly after Machutadze became the company's managing member. In a little over a month, the company submitted claims for 78,663 items - mostly intermittent urinary catheters - billing roughly $134 million, with $90 million initially processed as "paid." Medicare suspended payments to Centurion on Oct. 2, 2025, but supplemental "Medigap" insurers continued issuing checks, which were then deposited into Centurion accounts. Investigators say Machutadze then moved the money through multiple accounts and wired at least $988,830 from Centurion accounts to a shell entity in Hong Kong.

  • In late September 2025, shortly after Machutadze became Centurion's managing member, the company began submitting large batches of claims.
  • In a little over a month, Centurion submitted claims for 78,663 items totaling roughly $134 million, with $90 million initially processed as "paid."
  • On Oct. 2, 2025, Medicare suspended payments to Centurion.
  • In late December 2025, agents tracked Machutadze from his Austin apartment as he visited mail stores and banks.
  • On Jan. 29, 2026, authorities learned that Machutadze had booked a flight from Mexico with a final destination in the United Arab Emirates, prompting them to arrest him.

The players

Nika Machutadze

A Russian citizen living in Texas who is charged with conspiracy to commit money laundering. He became the managing member of Centurion Superior Medical in late 2025.

Centurion Superior Medical

A small Austin medical supply business at the center of the alleged Medicare billing scheme.

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What they’re saying

“When we first got the notice on my husband's Medicare summary, it had the charges, and I said, 'What the hell is this?'”

— Suzette Elekman, Florida resident (CBS News Texas)

“But then I looked at it and realized — no, that's me.”

— Dorothy Merritt, Tennessee resident (CBS News Texas)

“It took four months to let us know this was happening. By then, they had paid it all out. Nobody checked.”

— Arthur Carpenter, Tennessee resident (CBS News Texas)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Nika Machutadze out on bail.

The takeaway

This case highlights ongoing concerns about Medicare fraud, particularly schemes involving shell companies and overseas money transfers. It also raises questions about vulnerabilities in the Medicare payment system that allow private insurers to continue issuing payments even after Medicare suspends its own payments.