Investigation in Nepal reveals $20 million insurance scheme involving guides on Mount Everest

Kathmandu is the capital of Nepal, where some adventurous individuals go climbing Mount EverestThe highest peak in the world.

The mountain is located on the border of Nepal and the Tibet Autonomous Region China.

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After highlighting the fraud in 2018, the government established a fact-finding committee, issued a 700-page report and announced reforms, the Kathmandu Post reported.

But last year, Central Investigation Bureau of Nepal Police (CIB) reopened the issue and discovered that fraud is on the rise.

Mount Everest

This photo taken on May 31, 2021, shows mountaineers lined up as they scale a slope during their ascent to the summit of Mount Everest in Nepal. (AFP via Getty Images)

The outlet noted that the CIB investigation points to two main fraudulent scenarios.

One involves guides suggesting to tired adventurers who don’t want to turn back that if they pretend to be sick, a helicopter will pick them up, according to the Kathmandu Post.

In the other scenario, guides and hotel staff were trained, according to the CIB investigation, to scare hikers at high altitudes, where altitude sickness can occur, the outlet reported. They allegedly claim that the hikers are in danger of death and that only immediate evacuation will save them.

In some cases, investigators discovered that Diamox (acetazolamide) tablets, used to prevent altitude sickness, were given in conjunction with large amounts of water ingestion to cause symptoms that would have given reason for a rescue, the outlet reported.

In at least one case noted in the investigation, guides allegedly laced food with baking powder to make people unwell, the outlet reported.

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Mountaineers at Everest Base Camp

Mountaineers’ tents are photographed at Everest Base Camp in the Mount Everest region of Solukhumbu district on April 18, 2024, the 10th anniversary of the avalanche that killed 16 Nepalese guides. (Poornima Shrestha/AFP via Getty Images)

The report noted that police recorded a case in which four individuals were recovered on board a single helicopter, but insurance claims were submitted as more than one separate rescue operation.

The framework holding the mass fraud scheme together was detailed in police interrogations, according to the outlet, which reported that hospitals pay between 20% to 25% of insurance money to tour companies and 20% to 25% to helicopter rescue operators in exchange for patient referrals.

The outlet suggested that tour guides and their businesses should get a boost from the inflated bills. The Kathmandu Post added that in some cases, tourists are being offered money to participate in the scam.

Between 2022 and 2025, investigators found that there were 4,782 foreign patients served at the hospitals involved, with 171 cases verified as fraudulent rescues, the newspaper reported. During that period, Era International Hospital received more than $15.87 million in deposits for such activities, and Shreedhi International Hospital received more than $1.22 million, the outlet reported.

The Mountain Rescue Service carried out 171 fake rescues out of a total of 1,248 charter flights, scoring about $10.31 million from insurance companies, the outlet reported, adding that the Nepal Charter Service carried out 75 fake rescues out of 471 flights, claiming $8.2 million. Everest Experience and Assist is allegedly linked to 71 suspicious rescues out of 601 flights, with claims worth $11.04 million.

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Mountaineers Nepal

This photo taken on May 12, 2021, shows mountaineers as they ascend to the summit of Mount Everest in Nepal. (Pemba Dorje Sherpa/AFP via Getty Images)

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The CIB charged 32 people last month with crimes against the state and organized crime, the agency reported, noting that nine individuals were arrested while others were said to be on the run.

The outlet noted that individuals from Mountain Helicopters, Altitude Air and Manang Air, which has been rebranded as Basecamp Helicopters, as well as doctors and administrators at Swacon International Hospital, Shreedhi International Hospital and Era International Hospital were among the individuals who were charged.

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