(SeaPRwire) –   A probe has uncovered an insurance fraud scheme in Nepal worth almost $20 million, with guides accused of either faking or provoking mountain rescues—including by spiking the food of some Everest-area hikers, per a report from The Kathmandu Post.

Kathmandu serves as Nepal’s capital, and it’s a destination for adventurous people looking to climb Mount Everest, the tallest mountain on Earth.

The peak straddles the border between Nepal and China’s Tibet Autonomous Region.

The Kathmandu Post noted that following its 2018 expose of the fraud, the government set up a fact-finding panel, released a 700-page report, and announced reforms.

However, last year, Nepal Police’s Central Investigation Bureau (CIB) revisited the case and found that the fraud was on the rise.

The publication stated that the CIB investigation identifies two primary types of fraudulent activity.

One scenario involves guides telling exhausted trekkers who don’t want to hike back that if they pretend to be sick, a helicopter will come to get them, as per The Kathmandu Post.

In the other scenario, guides and hotel employees—per the CIB probe—have been trained to frighten trekkers at high altitudes (where altitude sickness is common), the outlet reported. They are accused of claiming the trekkers are at risk of death and that only an immediate evacuation can save them.

In certain cases, investigators found that Diamox (acetazolamide) tablets—used to prevent altitude sickness—were administered along with too much water to trigger symptoms that would justify a rescue, the outlet said.

The outlet noted that in at least one case documented in the investigation, guides are accused of spiking food with baking powder to make people sick.

Police documented a case where four people were transported on a single helicopter flight, yet insurance claims were submitted as multiple separate rescues, the report indicated.

The structure behind this large-scale fraud was revealed in police interviews, the outlet reported. Hospitals are said to pay 20% to 25% of insurance funds to trekking companies and another 20% to 25% to helicopter rescue operators in exchange for patient referrals.

Trekking guides and their businesses benefit from padded invoices, the outlet suggested. The Kathmandu Post added that in some cases, tourists are offered cash to participate in the scam.

Between 2022 and 2025, investigators found that 4,782 foreign patients were treated at the involved hospitals, with 171 cases confirmed as fraudulent rescues, the outlet said. Over that time, Era International Hospital collected more than $15.87 million in deposits from these activities, while Shreedhi International Hospital received over $1.22 million.

Mountain Rescue Service conducted 171 fake rescues out of 1,248 total charter flights, earning approximately $10.31 million from insurers, the outlet reported. Nepal Charter Service performed 75 fake rescues from 471 flights, claiming $8.2 million. Everest Experience and Assistance was allegedly linked to 71 suspicious rescues out of 601 flights, with claims totaling $11.04 million.

Last month, the CIB filed charges against 32 people for state offenses and organized crime, the outlet reported. Nine of these individuals were arrested, while others are said to be on the run.

Those charged include personnel from Mountain Helicopters, Altitude Air, and Manang Air (now rebranded as Basecamp Helicopters), as well as doctors and administrators from Swacon International Hospital, Shreedhi International Hospital, and Era International Hospital, the outlet stated.