Owner of Long Island Ambulette Services Company Sentenced to Prison for Multimillion Dollar Healthcare Fraud Scheme

Earlier today, in federal court in Central Islip, Adnan Arshad, also known as "Eddie," was sentenced by United States District Judge Joan M. Azrack to 97 months in prison for conspiracy to commit healthcare fraud and conspiracy to commit money laundering in connection with a scheme to steal over $19 million from Medicaid. Arshad was also ordered to pay forfeiture of over $19 million, including the forfeiture of several real properties and vehicles.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); and Raymond A. Tierney, Suffolk County District Attorney, announced the sentence.

"While taxpayers footed the bill, Arshad financed a lavish lifestyle with multimillion-dollar homes and luxury vehicles. Today's sentence sends a clear message that those who defraud public healthcare programs for personal enrichment should take notice of the price this defendant will now pay for his greed," stated United States Attorney Nocella. "Our Office and the Administration are vigorously prosecuting criminals like the defendant who treat Medicaid like their own personal piggy bank."

Mr. Nocella expressed his appreciation to the Office of the New York State Comptroller and the Medicaid Fraud Control Unit of the New York State Attorney General's Office for their work on the case.

"The defendant in this case brazenly defrauded the Medicaid program of tens of millions of dollars for transportation services that were never provided," stated HHS-OIG Special Agent in Charge Gruchacz. "HHS-OIG will continue to work with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs."

"Adnan Arshad and his co-conspirators orchestrated a scheme that siphoned millions from Medicaid, depriving vulnerable patients of resources and fueling a lavish lifestyle built on fraud," stated IRS-CI New York Special Agent in Charge Chavis. "This sentencing demonstrates that IRS Criminal Investigation will relentlessly pursue those who exploit public healthcare programs for personal gain. Today, justice has caught up with those who treat taxpayer dollars as their own."

"Healthcare fraud on this scale does not stay hidden, and it will not go unpunished. This defendant saw hard-earned taxpayer funds meant for the less-fortunate as nothing more than a way to line his pockets. He billed Medicaid for transportation that never happened to finance a lavish lifestyle at the public's expense," stated Suffolk County District Attorney Tierney. "My Office is proud to stand with our federal partners to ensure that this defendant answers for his greed and forfeits what he stole."

As set forth in court filings and facts presented in court, Arshad owned MTK Taxi LLC in Montauk, Long Island, and co-owned All-Star Taxi LLC, in Ronkonkoma. From approximately December 2020 to his arrest in June 2024, Arshad and his co-conspirators orchestrated a scheme to defraud Medicaid by paying illegal health care kickbacks to Medicaid beneficiaries in exchange for ordering transportation services through their companies, including transportation purportedly for methadone treatment at addiction treatment centers. In reality, Arshad's companies generally did not provide the medical transportation services for which they billed Medicaid. Instead, they submitted millions of dollars in fraudulent claims for nonexistent rides, including claims for individuals who were deceased, hospitalized or incarcerated.

Arshad and his co-conspirators also inflated their Medicaid reimbursements by directing beneficiaries to request transportation to addiction treatment centers in New York City, despite the availability of numerous treatment centers on Long Island, and by instructing beneficiaries to provide false pickup addresses to make the trips appear longer and therefore more lucrative. Through this scheme, the transportation companies owned or operated by Arshad and his co-conspirators billed Medicaid over $16 million for trips to three addiction treatment centers in New York City.

Arshad used the illicit proceeds to expand and perpetuate the scheme by purchasing several additional transportation vehicles and to finance a lavish lifestyle, including the purchase of multimillion-dollar homes and luxury vehicles, such as a Ferrari and multiple BMWs and Mercedes.

To date, at least five of Arshad's co-conspirators have pleaded guilty for their participation in the scheme and are awaiting sentencing.

The government's case is being prosecuted by the Criminal Section of the Office's Long Island Division. Assistant United States Attorney Adam Toporovsky and Special Assistant United States Attorney Jennifer Milito of the Suffolk County District Attorney's Office are in charge of the prosecution, with the assistance of Paralegal Specialist Janelle Robinson. Assistant United States Attorney Tanisha Payne of the Office's Asset Forfeiture Section is handling forfeiture matters.

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is focused on investigating and prosecuting those who commit fraud against the American people.

The Defendant:

ADNAN ARSHAD (also known as "Eddie")
Age: 47
Mount Sinai, New York

E.D.N.Y. Docket No. 24-CR-231 (JMA)