Nepal Police have charged 32 people — including trekking agency owners, helicopter operators, sherpas and hospital staff — in a major insurance fraud case tied to Everest-area rescues. Investigators say the long-running scheme, active on popular Mount Everest trekking routes between 2022 and 2025, involved deliberately making foreign trekkers and climbers ill to trigger costly helicopter evacuations billed to international insurers.
According to the Kathmandu Post, some tourists were encouraged to fake symptoms while others were reportedly made genuinely sick after substances such as baking soda were added to their food. The resulting gastrointestinal problems mimicked altitude sickness and prompted emergency air rescues that appeared medically necessary.
“This was a highly organised scheme,” a senior police official said. Investigators allege guides, sherpas, helicopter operators and medical personnel colluded: once rescues were underway, operators fabricated medical and flight documents, exaggerated claims or billed multiple passengers as separate evacuations to inflate payouts. Police estimate more than 300 fraudulent helicopter rescues were carried out, generating nearly $20 million in bogus insurance claims. In some instances a single flight costing a few thousand dollars was billed as multiple evacuations using fake manifests and medical reports.
Initial defendants have appeared before the Kathmandu District Court while others remain at large. Prosecutors are seeking heavy penalties under Nepal’s organised crime and fraud laws, including fines and lengthy prison terms. The scandal has damaged Nepal’s tourism reputation; some international insurers have already ceased covering trekkers after past fraud concerns.
The scheme was first reported in 2018 and a government inquiry followed, but authorities say lax enforcement allowed it to persist and expand. “When there is no action against crime, it flourishes,” said Manoj Kumar KC, chief of the Nepal Police’s Central Investigation Bureau.
Officials are pushing for stricter oversight and transparency in adventure tourism. New rules require all rescue operations be formally reported to authorities to prevent abuse. Tourists and climbers are being urged to verify medical and evacuation procedures independently during the ongoing 2026 Everest climbing season.
