Authorities in Nepal have uncovered a major fraud scheme linked to Mount Everest expeditions, in which trekking guides are accused of deliberately making tourists ill to trigger costly helicopter evacuations. The alleged operation, estimated to be worth around $20 million, has led to charges against 32 individuals, including trekking agency operators, helicopter service providers, and hospital officials, for organised crime and fraud.
According to investigators, some guides working with trekking companies reportedly poisoned tourists by mixing baking soda into their meals. This caused severe gastrointestinal distress, with symptoms closely resembling altitude sickness or food poisoning, making it difficult for victims to identify the true cause of their condition.
Once tourists fell sick, they were allegedly pressured into agreeing to emergency helicopter evacuations, which are extremely expensive. Authorities stated that operators then used falsified medical reports and flight documentation to file claims with international travel insurance companies, securing large payouts under the pretext of urgent rescues.
The proceeds from these fraudulent claims were reportedly distributed among various participants in the scheme, including guides, trekking agencies, helicopter companies, and hospitals that allegedly provided fake or unnecessary treatments to support the claims.
The investigation began in January with the arrest of six executives from three prominent rescue companies. Findings suggest that these firms collectively secured nearly $19.7 million through fraudulent practices. One company is accused of falsifying 171 out of 1,248 rescue claims, resulting in more than $10 million in payouts. Another allegedly fabricated 75 of 471 rescues, claiming about $8 million, while a third is said to have made 71 false claims worth over $1 million.
Prosecutors are now seeking fines totalling approximately $11.3 million, and the case is being treated as a high-priority matter due to its scale and international implications.
This scandal highlights ongoing challenges within Nepal’s tourism sector, which is a major contributor to the country’s economy and supports over a million jobs. Concerns over fraud have already led several international insurance providers to withdraw coverage for trekking in Nepal.
Although reforms were introduced in 2018 to improve oversight—such as eliminating intermediaries and requiring detailed reporting of rescues—the scam reportedly continued due to weak enforcement. Officials have acknowledged that inadequate punitive action allowed such practices to persist and expand over time.
