Nepal Investigation Uncovers $20 Million Fraud Scheme Targeting Mt. Everest Climbers Through Contaminated Food: Report

An alarming investigation has uncovered an elaborate insurance fraud scheme in Nepal, valued at nearly $20 million. The scam involves guides who allegedly orchestrate or fabricate emergency rescues in the mountains, sometimes by tampering with hikers’ meals near Mt. Everest, as detailed by The Kathmandu Post.

Nestled in the heart of Nepal, Kathmandu serves as the capital city and a hub for thrill-seekers aiming to conquer Mount Everest, the tallest mountain on Earth.

Mount Everest straddles the border between Nepal and the Tibet Autonomous Region of China.

Following revelations of the fraud in 2018, The Kathmandu Post reported that the Nepali government responded by forming a fact-finding committee, which produced a detailed 700-page report and announced plans for reform.

Despite these efforts, the Central Investigation Bureau (CIB) of the Nepal Police took up the case again last year, only to find that fraudulent activities were on the rise.

This photograph taken May 31, 2021, shows mountaineers lined up as they climb a slope during their ascension to the summit of Mount Everest in Nepal. (Lakpa Sherpa/AFP via Getty Images)

The outlet indicated that the CIB probe points out two main fraudulent scenarios.

One involves guides suggesting to tired adventurers who do not want to walk back that if they feign illness, a chopper will pick them up, according to The Kathmandu Post.

The outlet reported that, in the other scenario, guides and hotel staff, according to the CIB probe, have been coached to scare trekkers at high altitude, where altitude sickness can occur. They allegedly claim that the trekkers are in danger of dying and that only immediate evacuation will spare them. 

In some instances, investigators discovered that Diamox (acetazolamide) tablets, utilized to prevent altitude sickness, were given in conjunction with excessive water intake to cause the symptoms that would give grounds for a rescue, the outlet reported. 

In at least one instance noted in the investigation, guides allegedly laced food with baking powder to cause people to be unwell, the outlet stated.

Tents of mountaineers are pictured at Everest base camp in the Mount Everest region of Solukhumbu district April 18, 2024, on the tenth anniversary of an avalanche that killed 16 Nepali guides.  (Purnima Shrestha/AFP via Getty Images)

Police recorded a case in which four individuals were picked up on one chopper flight, but insurance claims were filed as more than one separate rescue, the report noted.

The framework tying the system of mass fraud together was detailed in police interrogations, according to the outlet, which reported that hospitals shell out 20% to 25% of the insurance money to trekking businesses and 20% to 25% to chopper rescue operators in return for patient referrals. 

Trekking guides and their businesses get a boost from inflated invoices, the outlet suggested. In some instances, tourists are offered money to join in the scam, The Kathmandu Post added.

In the period between 2022 and 2025, investigators found a whopping 4,782 foreign patients serviced at implicated hospitals, with 171 cases verified as fraudulent rescues, the outlet reported. During that span, Era International Hospital raked in deposits of over $15.87 million for such activities and Shreedhi International Hospital got more than $1.22 million, the outlet reported.

Mountain Rescue Service carried out 171 fake rescues from an overall 1,248 charter flights, scoring around $10.31 million from insurers, the outlet reported, adding that Nepal Charter Service executed 75 fake rescues out of 471 flights, claiming $8.2 million. Everest Experience and Assistance was allegedly tied to 71 suspicious rescues out of 601 flights, with claims of $11.04 million.

This photograph taken May 12, 2021, shows mountaineers as they climb during their ascent to the summit of Mount Everest in Nepal. (Pemba Dorje Sherpa/AFP via Getty Images)

CIB charged 32 people last month with offenses against the state and organized crime, the outlet reported, noting that nine individuals were arrested while others were said to be absconding.

Individuals from Mountain Helicopters, Altitude Air and Manang Air, which was rebranded as Basecamp Helicopters, as well as physicians and administrators with Swacon International Hospital, Shreedhi International Hospital and Era International Hospital were among the individuals who have been charged, the outlet indicated.