Adnan Arshad, also known as “Eddie,” pleaded guilty to conspiracy to commit healthcare fraud and conspiracy to commit money laundering in connection with a scheme to steal approximately $20 million from Medicaid. When sentenced, Arshad faces up to 20 years’ imprisonment, restitution of at least $16 million, and forfeiture of over $19 million, including several real properties and vehicles. Arshad was the owner of MTK Taxi LLC in Montauk, Long Island, and part owner of All-Star Taxi LLC, in Ronkonkoma, Long Island.
From approximately December 2020 to his arrest in June 2024, Arshad and his co-conspirators paid illegal healthcare kickbacks to Medicaid beneficiaries for fraudulent ambulette services. Pursuant to the scheme, the beneficiaries would order medical transportation services specifically from Arshad and his co-conspirators, including for transportation to addiction treatment centers for the beneficiaries’ purportedly necessary methadone treatment. In reality, Arshad’s businesses generally did not provide the medical transportation services ordered by the Medicaid beneficiaries. At least two claims were submitted to Medicaid for individuals who were deceased, and some claims were submitted for individuals who were hospitalized or incarcerated. In total, Arshad and his co-conspirators fraudulently billed Medicaid millions of dollars for these non-existent services throughout the course of the scheme.