Nepal guides accused of poisoning trekkers to trigger costly helicopter rescues in $20 million insurance fraud

Nepalese authorities have charged 32 people, including trekking company owners, helicopter operators, and hospital officials, with organized crime and fraud in a scheme that allegedly defrauded international insurers of about US$20 million by deliberately making Everest trekkers sick to force costly helicopter evacuations, the New York Post reported.

Police said guides allegedly added baking soda to food, causing severe gastrointestinal distress with symptoms mimicking altitude sickness or food poisoning. When trekkers fell ill, the suspects pressured them to accept emergency helicopter evacuations, then submitted fraudulent medical and flight documents to claim insurance payouts, which were shared among guides, helicopter companies, trekking agencies, and hospitals involved.

The investigation began in January with the arrest of six executives from three mountain rescue companies. One company allegedly fabricated 171 of 1,248 rescue claims, fraudulently obtaining over US$10 million. Another allegedly faked 75 cases for about US$8 million, while a third submitted 71 false claims worth over US$1 million.

Prosecutors are seeking about US$11.3 million in fines. A court spokesperson said the case is considered a high-priority corruption case and will be fast-tracked.

Nepal's tourism industry has been plagued by similar scandals in recent years, with some international insurers ceasing coverage for trekkers in the country. Police said weak enforcement has allowed the fraudulent practices to persist.