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An investigation has unearthed an insurance scam worth nearly $20 million in Nepal that allegedly involved mountain rescue guides fraudulently administering drugs, including laced with drugs in the food of some hikers near Mount Everest, according to a report in The Kathmandu Post.
Kathmandu is the capital of Nepal, where some adventurous people go to climb the world’s highest peak, Mount Everest.
This mountain is located on the border of Nepal and Tibet Autonomous Region of China.
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The Kathmandu Post reported that after exposing the fraud in 2018, the government established a fact-finding committee, issued a 700-page report and announced reforms.
But last year, the Central Investigation Bureau (CIB) of Nepal Police reopened the case and found that fraud was on the rise.
This photo taken on May 31, 2021 shows climbers lined up while climbing the slope during their climb to the summit of Mount Everest in Nepal. (Lakpa Sherpa/AFP via Getty Images)
The outlet indicated that the CIB investigation points to two main fraud scenarios.
According to the Kathmandu Post, one of these involves guides suggesting to weary adventurers who do not want to turn back that if they feign illness, a helicopter will pick them up.
The outlet reported that, in the second scenario, according to the CIB investigation, guides and hotel staff have been trained to scare trekkers to high altitudes, where altitude sickness can occur. They reportedly claim that the trekkers are in danger of dying and only immediate evacuation will save them.
In some cases, investigators found that Diamox (acetazolamide) tablets, used to prevent altitude sickness, were given with excessive water intake, which could cause symptoms that provide grounds for rescue, the outlet reports.
The outlet said the investigation found in at least one instance that guides had allegedly added baking powder to food to make people unwell.
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A picture of climbers’ tents at Everest Base Camp in the Mount Everest region of Solukhumbu district on April 18, 2024, on the tenth anniversary of the avalanche that killed 16 Nepali guides. (Poornima Shrestha/AFP via Getty Images)
The report said police have registered a case in which four persons were picked up by a helicopter flight, but the insurance claims were filed as more than one separate rescue.
According to the outlet, the framework for piecing together a massive fraud system was detailed in police interrogation, which revealed that hospitals pay 20% to 25% of insurance amounts to trekking businesses and 20% to 25% to helicopter rescue operators in exchange for patient referrals.
The outlet suggested that the increased invoices provide a boost to trekking guides and their businesses. The Kathmandu Post said that in some cases, tourists are offered money to participate in the scam.
Over the period between 2022 and 2025, investigators found that 4,782 foreign patients were served at the hospitals concerned, with 171 cases verified as fraudulently rescued cases, the outlet reported. During that period, Era International Hospital collected more than $15.87 million for such activities and Sridhi International Hospital received more than $1.22 million, the outlet reported.
Mountain Rescue Service conducted 171 fake rescues out of a total of 1,248 charter flights, claiming $8.2 million from insurers, the outlet reported Nepal Charter Service conducted 75 fake rescues out of 471 flights, claiming $8.2 million. Everest Experience and Support was reportedly linked to 71 questionable rescues out of 601 flights, claiming $11.04 million.
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This photo taken on May 12, 2021 shows climbers climbing the summit of Mount Everest in Nepal. (Pemba Dorje Sherpa/AFP via Getty Images)
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The CIB last month charged 32 people with crimes against the state and organized crime, the outlet reported, adding that nine individuals had been arrested, while others were said to be absconding.
The outlet indicated that individuals from Mountain Helicopters, Altitude Air and Manang Air, which was rebranded as Basecamp Helicopters, as well as physicians and administrators from Swacan International Hospital, Shriddhi International Hospital and Era International Hospital were among those charged.
