Loretto Hospital Chicago news: Charges dropped in COVID-19 fraud case; Judge Sharon Johnson Coleman questions US Attorney's Office

CHICAGO (WLS) — Federal prosecutors have withdrawn all charges against two defendants in a COVID-19 fraud case tied to a hospital, after defense lawyers alleged prosecutorial misconduct and triggered pointed scrutiny from the judge handling the matter.

Before approving the government’s request to drop the case, U.S. District Judge Sharon Johnson Coleman pressed prosecutors for answers during a hearing at the Dirksen Federal Building, signaling clear frustration with the leadership of the U.S. Attorney’s Office.

ABC7 Chicago is now streaming 24/7. Click here to watch

The case involves alleged fraud connected to COVID-19 testing at Loretto Hospital during the pandemic. Prosecutors had accused the defendants of filing false claims related to that testing, but lawyers for two of the accused challenged the indictments by raising concerns about misconduct during the grand jury proceedings.

In response, the government sought dismissal of the charges against Mahmood Khan and Suhaib Chaudhry. Assistant U.S. Attorney Diane MacArthur told the court, “We decided that providing the defendants with their relief… is not an unjust result given the culpability in the case pending before you.”

The hearing drew additional notice because the assistant U.S. attorney involved in presenting the Loretto Hospital case to the grand jury also worked on the separate “Broadview Six” case, which was thrown out after similar allegations of prosecutorial misconduct. That earlier grand jury proceeding was also handled by Assistant U.S. Attorney Sheri Mecklenberg.

At the hearing, Judge Coleman also took issue with the absence of U.S. Attorney Andrew Boutros, who heads the office, arguing that responsibility should not rest solely with individual prosecutors.

“You keep pointing the finger at Sheri Mecklenberg, this is not a one-man show. It should be the U.S. Attorney, and he’s not here,” Coleman said. “It’s his decision who he puts in that position… that’s why he got the big job, but he’s not here.”

Former federal prosecutor Ron Safer said the dismissals reflect broader concerns within the office.

“It takes a lifetime to build a trust, but it can be destroyed in a second, and that’s what’s happening to the generations of goodwill that this office has had, because it’s always done the right thing until now,” Safer said. “It says that there’s a fundamental failure of leadership. Things are happening in the office that have never happened before. This is a scandal.”

For Khan and Chaudhry, the case is now closed. Two other defendants indicted in the Loretto Hospital fraud case could still face superseding indictments through a different grand jury.

READ MORE | Former CEO of Chicago’s Loretto Hospital charged in conspiracy involving more than $700K in bribes

Copyright © 2026 WLS-TV. All Rights Reserved.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like
Judge temporarily blocks Justice Dept. work on $1.7+ billion

Judge Keeps Blocking DOJ’s $1.8 Billion ‘Anti-Weaponization’ Fund

Alexandria, Virginia — A federal judge on Friday kept in place a…
North Carolina HS valedictorian speaks out on speech controversy after being outed by heckling student

North Carolina Valedictorian Responds After Graduation Speech Controversy and Student Outing

A North Carolina high school valedictorian says he has been left feeling…
5-year-old swept away in Laguna Beach identified as family mourns

Laguna Beach identifies 5-year-old swept away as family mourns loss

The family of 5-year-old Amada Mia Brown is grieving after authorities recovered…
Trump plans to deport Iranians to violence-plagued Central Africa Republic in new deal

Trump Eyes New Deal to Deport Iranians to Violence-Hit Central African Republic

The Trump administration is moving forward with plans to deport a group…
‘We Ended the War’: Trump Touts Impending Iran Deal at Virtual Rally

Trump Says Iran Deal Is Near, Declares ‘We Ended the War’ at Virtual Rally

President Donald Trump said Thursday evening that “we ended the war with…
‘I sleep well at night’

“I Sleep Well at Night”: Why This Remark Is Drawing Attention

The Texas judge who oversaw Karmelo Anthony’s murder trial said Anthony appeared…
Jurors in Lindsay Clancy trial may be have to see horrific autopsy photos

Lindsay Clancy Jurors May Be Shown Graphic Autopsy Photos During Trial

Jurors in the murder trial of Massachusetts mother Lindsay Clancy may be…
US moving forward with signing ceremony plans, but deal still needs final approval from Iran, sources say

US Advances Signing Ceremony Plans as Iran’s Final Approval Still Pending, Sources Say

The Trump administration is pressing ahead with early plans for a possible…
Chicago, Illinois weather: Tornadoes leave damage across area in Streator, NW Indiana

Tornadoes Cause Damage in Streator and Northwest Indiana Area

CHICAGO (WLS) — Cleanup efforts are underway across the Chicago region after…
Long Island semipro squad making plenty of sacrifices to fulfill soccer dreams

Long Island Semipro Team Makes Major Sacrifices in Pursuit of Soccer Dreams

After a recent evening physical therapy class ran overtime, Stony Brook student…
'Toy Story 5': Go behind-the-scenes at Pixar Animation Studios as Tim Allen says he 'really teared up' over new film

Toy Story 5 Behind the Scenes: Tim Allen Says He “Really Teared Up” Over Pixar’s Emotional New Film

LOS ANGELES — “Toy Story 5” arrives in theaters June 19, and…
Active shooting incident in Midland, Texas, leaves 1 dead, multiple others injured

Midland, Texas Shooting Leaves 1 Dead and Several Others Injured

At least one person was killed and several others were hurt during…