In June, Adnan “Eddie” Arshad pleaded guilty to conspiracy to commit healthcare fraud and conspiracy to commit money laundering in federal court in Central Islip, in connection with a scheme to steal approximately $20 million from Medicaid. Arshad faces up to 20 years’ imprisonment, restitution of at least $16 million, and forfeiture of over $19 million, including several real estate 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 health care kickbacks to Medicaid beneficiaries for fraudulent ambulette services. The beneficiaries would order medical transportation services specifically from Arshad and his co-conspirators. In reality, Arshad’s businesses generally did not provide the 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. Arshad and his co-conspirators also submitted artificially inflated claims to Medicaid.
Arshad used the illicit proceeds to purchase several additional transport vehicles for use in the scheme and to purchase multimillion-dollar homes and luxury vehicles, including a Ferrari, BMWs, and multiple Mercedes. Five co-conspirators previously pleaded guilty to their participation in the scheme and are awaiting sentencing.
Source: United States Attorney’s Office, Eastern District of New York
