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NY Physician Pleads Guilty to Multimillion-Dollar Covid-19 Insurance Fraud Scheme

Attorney for the United States, Sean S. Buckley, announced that Ali Rashan, a medical doctor and the CEO and founder of ClearMD LLC, a provider of COVID-19 testing services in New York City, pleaded guilty to fraudulently billing insurance companies for COVID-19 testing services and submitting fraudulent medical records in furtherance of his scheme, causing at least $24 million in losses. Rashan, an anesthesiologist, founded and ran ClearMD LLC, which operated medical clinics that offered testing for COVID-19 during the global coronavirus pandemic. From at least 2021 through 2023, Rashan, through his ownership and operation of ClearMD, engaged in a widespread scheme to defraud healthcare benefit programs, including Medicare, Medicaid, the Health Resources and Services Administration’s Uninsured Program, and private insurance providers (collectively, the “Insurance Providers”), which ultimately caused losses to the Insurance Providers of over $24 million.

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