Former Loretto Hospital executive Anosh Ahmed appeared in federal court in Chicago on Monday to enter a not guilty plea to charges stemming from multiple fraud indictments related to COVID-19 testing and hospital funds. Ahmed’s arraignment marked his first appearance before U.S. District Judge Sharon Johnson Coleman since his return from overseas, where he had been in custody amid efforts to extradite him from Serbia.

Ahmed is facing a 15-count indictment that accuses him of fraud and money laundering linked to a scheme involving COVID-19 testing reimbursements. The charges allege that Ahmed participated in stealing tens of millions of dollars from government programs by submitting claims for tests that were largely never conducted. In a separate but related case, Ahmed and several former Loretto executives, including former CEO George Miller Jr., have also been accused of embezzling at least $15 million from the West Side safety net hospital over a five-year span, including the pandemic period, by authorizing payments to vendors for services that were not provided.

Ahmed’s attorney, Dan Webb, told the court that they are actively working toward a possible plea agreement and anticipated returning to court in the fall either to seek a change of plea or to file a new motion for an evidentiary hearing focusing on alleged prosecutorial misconduct during the grand jury phase. The misconduct claims arose amid scrutiny of the U.S. Attorney’s office after a related case known as the “Broadview Six” collapsed due to similar concerns about grand jury procedure. Last year, the same prosecutor leading Ahmed’s investigation faced accusations of improper conduct during the indictment phase.

Following Ahmed’s arrest, he waived his right to a detention hearing and will remain in custody pending trial. Prosecutors last week filed a superseding indictment targeting Ahmed alone, effectively superseding the original indictment and potentially limiting the scope for judicial review of alleged grand jury irregularities, although Judge Coleman retains discretion to investigate those claims.

The investigation into Loretto Hospital originated after the facility faced criticism in 2021 for improperly administering COVID-19 vaccinations, including reportedly providing shots early to workers at Trump Tower in downtown Chicago and to Cook County judges at a time of limited vaccine availability. Subsequent federal probes uncovered extensive fraud related to hospital funds and federal COVID-19 relief programs.

So far, only one conviction has emerged from these investigations. Mohamed Sirajudeen, a Chicago laboratory owner, pleaded guilty to playing a role in Ahmed’s COVID testing fraud scheme and is cooperating with authorities. Meanwhile, charges against several other defendants were dropped after Judge Coleman threatened an evidentiary hearing on prosecutorial misconduct. Miller and former Loretto executive Heather Bergdahl have entered deferred prosecution agreements, avoiding convictions and public filings of any admissions of wrongdoing. Charges against co-defendant Sameer Suhail remain pending.

Ahmed faces potential prison sentences of up to 20 years if convicted on the COVID fraud charges. Prosecutors are also seeking forfeiture of more than $50 million in assets, including luxury vehicles such as two Rolls-Royces, a Lamborghini, a Mercedes-Benz, and three high-end properties in Houston. Separately, Ahmed is awaiting trial on additional fraud charges before U.S. District Judge Robert Gettleman.