The Central Investigation Bureau (CIB) of Nepal Police on Wednesday arrested two more individuals in connection with the so-called “fake rescue” scam, an alleged scheme in which trekking guides, rescue companies and hospitals colluded to illegally claim insurance money from foreign trekkers and mountaineers.

In a statement issued on Wednesday, the CIB said it had arrested Rajendra Bahadur Singh, 56, managing director of Mountain Helicopters Pvt. Ltd., and Sandeep Tiwari, 28, owner of Royal Holidays Adventure and Travel.

Shiva Kumar Shrestha, spokesperson for the CIB, said a total of nine people have now been arrested in connection with the case. “The investigation is ongoing,” he said.

On January 25, the CIB arrested six individuals: Jayaram Rimal and Bibek Pandey of Mountain Rescue Service Pvt. Ltd.; Rabindra Adhikari and Bibek Raj Thapaliya of Nepal Charter Service Pvt. Ltd.; and Mukti Pandey and Subhash KC of Everest Experience and Assistance Pvt. Ltd. All of them served as directors or senior managers of their respective companies and are accused of producing fake insurance documents to make fraudulent claims.

On February 8, the bureau also arrested Dr Girwan Raj Timilsina of Lazimpat-based Shreedhi Hospital in Kathmandu for his alleged involvement in the scheme.

Police estimate that various travel and rescue companies defrauded international insurance firms of more than $19.65 million over the two-and-a-half-year period under investigation.

According to investigators, the Mountain Rescue Service conducted 171 fake rescues out of 1,248 charter flights and claimed around $10.31 million from insurers. Nepal Charter Service allegedly carried out 75 fake rescues out of 471 such flights, claiming about $8.2 million.

Everest Experience and Assistance was linked to 71 suspicious rescues out of 601 flights, with insurance claims totalling $11.04 million.

Investigators say the fake rescue operation was a well-established nexus involving trekking guides, trekking agencies, helicopter rescue companies, tour operators and hospitals.

“They colluded. They prepared forged and manipulated documents, including passenger and cargo manifests, fabricated or altered invoices, and falsely claimed that rescues had been conducted,” the CIB said in its statement.

“They also prepared documents showing that rescued foreign tourists were mandatorily treated in hospitals in Kathmandu, as required by insurance policy conditions. These documents included hospital bills, admission and discharge summaries, and medical reports that were either fabricated or manipulated.”