The owner of a Long Island ambulette service has admitted to his role in a multimillion-dollar healthcare fraud scheme. Adnan Arshad, or "Eddie" as he's known, pled guilty to charges of conspiracy to commit healthcare fraud and money laundering after authorities uncovered a scheme that defrauded Medicaid of approximately $20 million. As reported by the U.S. Attorney's Office for the Eastern District of New York, Arshad's sentencing could see him facing up to 20 years in prison, coupled with restitution payments and the forfeiture of over $19 million in assets.
During the proceedings, United States Attorney Joseph Nocella, Jr. highlighted the gravity of Arshad's actions, stating "The defendant was the leader of a massive fraud scheme in which he and his co-conspirators bilked Medicaid out of millions of dollars of government and taxpayer funds intended to help the needy and infirm," according to the press release. In their investigation, authorities discovered that the ambulette services submitted claims for numerous rides that were never completed, including some for individuals who were deceased or incarcerated at the time.
Arshad's two Long Island-based transportation companies, MTK Taxi LLC and All-Star Taxi LLC, were part of a wider network where beneficiaries were paid kickbacks to order medical transport services that were never rendered. As the investigation revealed, beneficiaries were instructed to book trips to New York City's addiction treatment centers, rather than local options, in order to inflate the billed amounts for longer trips, leading Medicaid to be overcharged by millions.
Special Agent in Charge of the HHS-OIG, Naomi Gruchacz emphasized the breach of public trust, stating, "For self-serving purposes, the defendant in this case egregiously diverted crucial Medicaid funds." The scheme enabled Arshad to fund a lavish lifestyle, using the illicit proceeds to acquire luxury homes and high-end vehicles, while defrauding the Medicaid system. Suffolk County District Attorney Raymond A. Tierney expressed this sentiment, noting the serious impact of such fraud, "Healthcare fraud not only diverts critical resources from those who need them most, but it also undermines public trust in these essential programs," in a statement obtained by the U.S. Attorney's Office.
Arshad's guilty plea comes after five co-conspirators had also pleaded guilty and are awaiting sentencing. The prosecution, led by Assistant United States Attorney Adam Toporovsky and Special Assistant Jennifer Milito of the Suffolk County District Attorney's Office. The forfeiture matters are being handled by Assistant United States Attorney Tanisha Payne of the Asset Recovery Section.
