https://dailyvoice.com/new-york/northsalem/rides-to-riches-ny-ambulette-owner-admits-to-20m-medicaid-scam/

Adnan “Eddie” Arshad, 46, of Mount Sinai, pleaded guilty to healthcare fraud and money laundering in Central Islip federal court on Wednesday, June 11.

Arshad confessed to leading a ring of fraudsters who stole approximately $20 million from Medicaid by falsely billing for non-existent medical transportation services over the course of nearly four years, prosecutors said.

“While Mr. Arshad should have been transporting medical patients as designed, the only people he took for a ride were the American taxpayers,” said IRS Special Agent Harry Chavis.

Arshad was the owner of MTK Taxi LLC in Montauk and part-owner of All-Star Taxi LLC in Ronkonkoma. From December 2020 until his arrest in June 2024, he and his co-conspirators:

Paid illegal kickbacks to Medicaid recipients to order ambulette services they didn’t need

Submitted claims for patients who were dead, hospitalized, or incarcerated

Inflated bills by instructing patients to use addiction treatment centers farther away and lie about their addresses

Filed at least $16 million in false claims just for trips to three NYC treatment centers

To support the scam, Arshad bought more transport vehicles and splurged on luxury homes and high-end cars—including a Ferrari, multiple BMWs, and Mercedes-Benz vehicles, prosecutors said.

He now faces up to 20 years in prison, must repay at least $16 million, and will forfeit over $19 million in assets.

Five co-conspirators have also pleaded guilty and are awaiting sentencing.