A major fraud case has unfolded in Nepal, where authorities say Mount Everest guides were allegedly drugging tourists to trigger expensive helicopter evacuations. Police have charged 32 people in connection with the scheme, which investigators say generated nearly $20 million in fraudulent insurance claims.
Officials allege the operation involved trekking agencies, helicopter companies, and hospital staff working together. The investigation, which began in January, first led to the arrest of six executives from three mountain rescue firms, and it’s since expanded, reports the New York Post.
According to authorities, guides working with trekking companies secretly added baking soda to tourists’ food. Investigators say the substance caused symptoms like vomiting and stomach distress, which resembled altitude sickness or food poisoning.
Once climbers became ill, they were allegedly urged to agree to emergency helicopter evacuations. Police say forged medical reports and flight documents were then used to bill international insurers for rescue operations that were either unnecessary or entirely fabricated.
Authorities say the proceeds were divided among those involved, including guides, trekking operators, helicopter services, and medical facilities that provided what investigators described as fake treatment.
One rescue company is accused of falsifying 171 out of 1,248 evacuation claims, resulting in more than $10 million in payouts. A second firm allegedly fabricated 75 of 471 rescues, claiming roughly $8 million, while a third is accused of 71 false claims totaling more than $1 million.
Police estimate the total fraudulent claims reached $19.69 million. Prosecutors are seeking fines amounting to $11.3 million.
“The court is … giving high priority to this high-profile corruption case,” a court spokesperson said.
Several international insurers have reduced or halted coverage for trekking in the country in recent years, citing repeated instances of abuse.
In 2018, Nepal’s government said it had eliminated intermediaries in rescue operations and made trekking companies directly responsible for their clients. The policy required detailed reporting of evacuation flights and medical care to the Department of Tourism.
“The scam continued due to lax punitive action,” said Manoj Kumar KC, chief of the Nepalese police’s specialized organized crime unit.
“When there is no action against crime, it flourishes. The insurance scam too flourished as a result,” he added.
Officials allege the operation involved trekking agencies, helicopter companies, and hospital staff working together. The investigation, which began in January, first led to the arrest of six executives from three mountain rescue firms, and it’s since expanded, reports the New York Post.
According to authorities, guides working with trekking companies secretly added baking soda to tourists’ food. Investigators say the substance caused symptoms like vomiting and stomach distress, which resembled altitude sickness or food poisoning.
Once climbers became ill, they were allegedly urged to agree to emergency helicopter evacuations. Police say forged medical reports and flight documents were then used to bill international insurers for rescue operations that were either unnecessary or entirely fabricated.
Authorities say the proceeds were divided among those involved, including guides, trekking operators, helicopter services, and medical facilities that provided what investigators described as fake treatment.
One rescue company is accused of falsifying 171 out of 1,248 evacuation claims, resulting in more than $10 million in payouts. A second firm allegedly fabricated 75 of 471 rescues, claiming roughly $8 million, while a third is accused of 71 false claims totaling more than $1 million.
Police estimate the total fraudulent claims reached $19.69 million. Prosecutors are seeking fines amounting to $11.3 million.
“The court is … giving high priority to this high-profile corruption case,” a court spokesperson said.
Several international insurers have reduced or halted coverage for trekking in the country in recent years, citing repeated instances of abuse.
In 2018, Nepal’s government said it had eliminated intermediaries in rescue operations and made trekking companies directly responsible for their clients. The policy required detailed reporting of evacuation flights and medical care to the Department of Tourism.
“The scam continued due to lax punitive action,” said Manoj Kumar KC, chief of the Nepalese police’s specialized organized crime unit.
“When there is no action against crime, it flourishes. The insurance scam too flourished as a result,” he added.
