On Tuesday, a federal judge in Central Islip sentenced Adnan “Eddie” Arshad, the Long Island ambulette owner prosecutors say turned Medicaid transportation into his personal ATM. According to investigators, the scheme bled millions from the public health insurance program by billing for medical transport trips that never happened, while the proceeds covered a lavish lifestyle built on multimillion dollar homes and luxury vehicles. Federal prosecutors said the sentence is meant to send a warning to anyone thinking about looting public health programs for profit.
Arshad pleaded guilty in June 2025 to conspiracy to commit healthcare fraud and money laundering. He admitted that he and co conspirators billed Medicaid for fictitious ambulette rides and padded other claims that added up to roughly $20 million, according to a June 11, 2025 press release from the U.S. Attorney’s Office for the Eastern District of New York. Court filings state that Arshad owned MTK Taxi LLC in Montauk and part owned All-Star Taxi in Ronkonkoma, and that beneficiaries were paid illegal kickbacks to request rides from his companies.
In an update posted on X, the U.S. Attorney’s Office said the sentence "sends a clear message" that anyone who raids public healthcare programs for personal enrichment will face consequences, a statement attributed to U.S. Attorney Joseph Nocella on the office's account. The U.S. Attorney's Office, EDNY on X added that taxpayers "footed the bill" while Arshad used the fraud proceeds to bankroll his lifestyle.
How prosecutors say the scheme worked
The HHS Office of Inspector General says Arshad and his co defendants paid Medicaid beneficiaries to request transportation to addiction treatment centers, then instructed them to provide false addresses so the companies could bill for higher reimbursement rates. Investigators reported that some of the billed trips were for people who were actually deceased, hospitalized, or incarcerated, and that the defendants' companies alone billed roughly $16 million for rides to three treatment centers in New York City.
Investigators and partners
The investigation was led by HHS-OIG and IRS Criminal Investigation's New York Field Office, with help from the Suffolk County District Attorney's Office, according to the agencies. IRS Criminal Investigation, New York said Arshad used illicit Medicaid proceeds to buy additional transport vehicles along with high end luxury cars, and noted that real properties and vehicles are subject to potential forfeiture.
Penalties and what remains
At the time of his plea, prosecutors said Arshad faced a statutory maximum sentence of 20 years in prison, restitution of at least $16 million, and forfeiture of more than $19 million. The criminal case is docketed as E.D.N.Y. No. 24-CR-231 (JMA). Five co conspirators had already pleaded guilty and remain awaiting sentencing, and additional court filings and asset recovery efforts are still unfolding, according to court records.
Local impact and the bigger picture
Hoodline covered Arshad’s guilty plea last year and the scope of the alleged theft tied to medical transport billing in a $20 million Medicaid ripoff case. Federal prosecutors have recently stepped up enforcement against healthcare fraud, as part of a broader national push that has brought hundreds of charges and alleged billions of dollars in false claims during coordinated takedowns over the past two years.
Upcoming court filings are expected to spell out the final restitution numbers and forfeiture orders tied to Arshad’s case, and we will continue to track the docket as those details are added. The federal forfeiture and restitution process often continues long after a prison sentence is imposed, and related civil actions can follow as authorities work to trace and claw back ill gotten gains.
