32 people are accused of secretly drugging foreign climbers while working as guides for tourists climbing Mount Everest to trigger costly air evacuations as part of a $20 million insurance fraud scheme.
Operators of mountain rescue companies in Nepal have been arrested as part of the police operation, and a police spokesman said a total of 32 people have been charged so far and 11 arrests have been made.
But the scale of the fraud appears to be widespread, affecting 4,782 international climbers between 2022 and 2025. Police said more than 300 cases of alleged fake rescues have been uncovered, with bills totaling nearly $20 million charged to climbers.
The scandal has led to renewed scrutiny of tour operators and guides as this year's spring climbing season began on March 30. Investigators say the fraud involved multiple actors across the mountaineering ecosystem, including Sherpas, climbing company owners, helicopter operators and hospital executives.
Six operators and managers from rescue companies were the first to be arrested on January 25 for allegedly soliciting insurance money by faking the rescue of foreign tourists who said they had fallen ill while hiking in the wilderness.
These salvage companies managed to extract almost $20 million (£15 million) in payouts from international insurance companies for salvages that were unnecessary or, in some cases, completely fabricated.
Investigators say the guides used a variety of methods to force helicopter evacuations, including fake medical emergencies and coating food with large amounts of baking powder to stimulate the gastric distress commonly associated with altitude sickness. Others were given medication with excessive amounts of water to induce symptoms.
After climbers reported nausea, dizziness or body aches, they were advised to descend and accept costly emergency helicopter evacuations. Authorities said the operators then used falsified medical and flight documents to claim expenses from international travel insurers.
Once a "rescue" was activated, operators inflated costs by billing each passenger as if they had traveled on a separate helicopter flight, even when many people were flying together.
False flight details and falsified medical documents were then used to support exaggerated insurance claims, while hospitals created false admission and treatment reports – in some cases for tourists who were not actually receiving care.