Anosh Ahmed appeared before U.S. District Judge Sharon Johnson Coleman on charges including money laundering, wire fraud, and kickback conspiracy. Prosecutors allege the scheme submitted nearly $900 million in fraudulent claims to the federal government.
Ahmed, a former chief financial officer of Loretto Hospital, appeared in court wearing an orange jumpsuit. At the start of the arraignment hearing, Coleman told him, "Glad to see you here in the flesh with your lawyers."
After spending several years overseas, Ahmed was arrested in Serbia in January and challenged extradition before recently agreeing to be returned to the United States. He faces charges in two separate federal criminal cases tied to Loretto Hospital and entered not guilty pleas in both cases.
Ahmed's attorney, Dan Webb, said the case could take one of two paths: a change of plea or a renewed effort to seek a hearing into alleged prosecutorial misconduct.
Gil Soffer, ABC7's chief legal analyst, said discussions about resolving the case are likely underway.
"It's almost certainly the case that there are discussions going on about a resolution here. I don't think we would have seen the defendant waive extradition if not," Soffer said.
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Monday's hearing focused on allegations involving false claims for COVID testing that prosecutors say resulted in nearly $300 million in federal reimbursements.
If no plea agreement is reached, Ahmed's attorneys say they plan to seek a hearing into alleged prosecutorial misconduct connected to the same controversy that contributed to the collapse of the federal prosecution in the "Broadview Six" case.
"If the judge grants an evidentiary hearing, it could be very messy, very revealing. It could include testimony by all parties in the U.S. Attorney's Office who touch the case, potentially all the way to the top of the U.S. Attorney's Office," Soffer said.
Soffer said the strategy mirrors one used by attorneys representing two of Ahmed's co-defendants. Earlier this summer, prosecutors permanently dismissed charges against those defendants rather than proceed with a situation that could have required testimony under oath from leaders within the U.S. Attorney's Office.
Ahmed's case differs in one significant respect, however. Prosecutors have obtained a new superseding indictment.
"The idea is, if you get a new indictment, then any allegations about a taint affecting the first case, the first indictment, are gone because you have a new grand jury where there are presumably no misconduct allegations," Soffer said.
Whether the new indictment will allow prosecutors to avoid a hearing on alleged misconduct remains unclear. Coleman previously criticized the U.S. Attorney's Office when prosecutors dropped charges against Ahmed's co-defendants.
"There still could be a fight to the end, but very likely there are discussions to resolve it," Soffer said.
Ahmed remains in federal custody. He also faces a separate criminal case accusing him and others of participating in a scheme to take more than $15 million from Loretto Hospital.