Adnan Arshad, also known as “Eddie,” was sentenced on July 21 in federal court in Central Islip to 97 months in prison for conspiracy to commit healthcare fraud and conspiracy to commit money laundering related to a scheme that stole over $19 million from Medicaid. United States District Judge Joan M. Azrack also ordered Arshad to pay forfeiture of more than $19 million, including several real properties and vehicles.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Naomi Gruchacz, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General; Harry T. Chavis, Jr., Special Agent in Charge at Internal Revenue Service-Criminal Investigation New York; 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,” said Nocella. “Our Office and the Administration are vigorously prosecuting criminals like the defendant who treat Medicaid like their own personal piggy bank.”
According to court filings and facts presented in court, Arshad owned MTK Taxi LLC in Montauk and co-owned All-Star Taxi LLC in Ronkonkoma. From December 2020 until his arrest in June 2024, he orchestrated a scheme with co-conspirators involving illegal health care kickbacks paid to Medicaid beneficiaries who ordered transportation services through their companies—often for methadone treatment at addiction centers—even though these services were generally not provided. The companies submitted millions of dollars in fraudulent claims for rides that did not occur or involved individuals who were deceased, hospitalized, or incarcerated.
Arshad’s companies inflated reimbursements by directing beneficiaries to request trips from Long Island to New York City addiction centers despite local options being available and instructed them to provide false pickup addresses so trips appeared longer on paper. The transportation firms billed Medicaid over $16 million just for trips purportedly made to three addiction treatment centers in New York City.
Arshad used proceeds from this activity both to expand operations—purchasing additional vehicles—and fund personal purchases such as multimillion-dollar homes and luxury cars including a Ferrari along with multiple BMWs and Mercedes-Benzes. At least five co-conspirators have pleaded guilty so far but are awaiting sentencing.