US-based Nigerian CEO arrested for $7m fraud

American authorities have arrested the Chief Executive Officer (CEO) of a United States-based home health care company, Cashmir Chinedu Luke, for allegedly defrauding the U.S. Department of Veterans Affairs (VA) of more than $7 million.

Luke was taken into custody on Wednesday at San Francisco International Airport as he attempted to board a flight to Nigeria, according to a statement released by the U.S. Department of Justice.

Prosecutors alleged that Luke, believed to be 66 and residing in Antioch, California, ran a five-year scheme through his company, Four Corners Health LLC, a Fresno-based provider of unskilled in-home care for elderly VA beneficiaries under the Veterans Community Care Program.

Between December 2019 and July 2024, Luke allegedly submitted around 10,000 false claims for services that were never provided, including charges for care supposedly given to veterans weeks after they had died.

Authorities said the fraudulent billings spanned multiple counties, including Fresno, Tulare, Merced, Mariposa, Madera, San Francisco, and Contra Costa.

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The complaint further stated that Luke, as the sole owner and billing representative, actively misled the VA’s third-party benefits administrator to prevent recovery of the false reimbursements, allowing the scheme to continue for years.

Investigators alleged that he immediately spent the funds on lavish personal expenses or moved the money through bank accounts across Asia and Africa.

The investigation was led by the U.S. Veterans Affairs Office of Inspector General, with Assistant U.S. Attorney Calvin Lee handling the prosecution.

If convicted, Luke faces up to 10 years in federal prison and a fine of $250,000.

However, prosecutors noted that sentencing will be determined by the court based on statutory guidelines.

The Star