New York Doctor Ali Rashan Accused of $24 Million COVID-19 Health Care Fraud Scheme

A New York doctor has been busted for allegedly gaming the system during the height of the COVID-19 pandemic. Ali Rashan, the CEO of ClearMD, is accused of a hefty $24 million health care fraud, involving COVID-19 testing services. As detailed by the U.S. Attorney's Office, Rashan allegedly exploited the demand for COVID-19 tests to bill insurance companies for services that were either not provided or not necessary.

It wasn't your average sleight of hand; the indictment claims Rashan went all-in, concocting an elaborate strategy using fraudulent claims and medical records. Court documents reveal that from at least 2021 to approximately 2023, Rashan directed ClearMD to craft thousands of claims for non-existent evaluation and management services. As per the release from the U.S. Attorney's Office, the doctor didn't stop there, also billing insurers for multiple COVID-19 tests when patients had only been administered a single one.

When insurers sought documentation, Rashan didn't hesitate to double down on the deceit, allegedly instructing his staff to write software that would create false medical records. "Our Office will not tolerate those who exploit the city’s pandemic response for personal profit," said U.S. Attorney Sean Buckley. Buckley's stern rebuke of the alleged actions points to a zero-tolerance policy for any who might siphon from public health initiatives. Rashan, if convicted of the charges—which include conspiracy to commit health care fraud, health care fraud itself, wire fraud, conspiracy to make false statements, and false statements relating to health care matters—faces significant prison time, as per the U.S. Attorney's Office.

The charges against Rashan are part an national crackdown, with 324 defendants charged in relation to health care fraud and drug diversion schemes. According to the U.S. Attorney's Office, these operations collectively concern over $14.6 billion of false billings. "The FBI remains dedicated to investigating any individual who selfishly exploits our health care system for their personal benefit," noted FBI Assistant Director Christopher G. Raia.