Health Care Fraud Indictments
The U.S. Attorney’s Office for the Eastern District of New York announced on Thursday that two individuals have been indicted in connection with a massive health care fraud scheme worth millions. The accused, Saad Aziz and Zabed Chaudhry, also known as “Jared,” were charged in federal court in Central Islip on various counts, including health care fraud, conspiracy to defraud the government, and money laundering.
Both defendants allegedly participated in schemes to provide illegal kickbacks and billed Medicaid for ambulance services related to medical appointments that either didn’t occur or were incentivized through these kickbacks. They also reportedly submitted inflated claims to Medicaid, inflating costs unjustly.
Interestingly, the term “ambulette” refers to a type of non-emergency medical transport designed for individuals who need assistance reaching health care facilities but aren’t in need of emergency care.
U.S. Attorney Joseph Nocera Jr. stated that the defendants turned a program meant to help vulnerable Medicaid recipients into a means for their personal gain. He emphasized that they purportedly siphoned away tens of millions in taxpayer dollars by paying illicit kickbacks and charging for services that were never rendered.
He added, “Protecting the integrity of federally funded health care programs and holding accountable those who seek to profit from fraud are priorities for our authorities and the government.”
Chaudhry and Aziz, previously charged in an earlier complaint, are set to be arraigned soon. They reportedly used the illicit earnings from this fraud scheme to finance their lifestyles and acquire several investment properties and homes, amounting to around $6 million.
Naomi Grcacci, Special Agent in Charge at HHS-OIG, pointed out that the alleged actions represent serious abuses of the Medicaid program, which undermines healthcare access for the vulnerable populations it is intended to serve. Grcacci reiterated that efforts to safeguard taxpayer money and uphold the integrity of government-funded healthcare programs are ongoing.
If found guilty, both defendants could face up to 20 years in prison and be ordered to pay at least $35 million in restitution and forfeiture.
Suffolk County District Attorney Raymond Tierney remarked that the Medicaid transportation benefits are designed to support those in need, and the alleged actions by the defendants not only took advantage of that system but also harmed taxpayers. He expressed gratitude toward the U.S. Attorney’s Office and other agencies for their partnership in tackling this alleged conspiracy.
This news comes as the Trump administration intensifies efforts to combat health care fraud nationwide. A statement released on May 26 claimed that President Trump and Vice President J.D. Vance are launching a broad initiative against those who have swindled billions from American taxpayers.
In 2023, reports from the Department of Health and Human Services indicated that improper payments across Medicare and Medicaid programs exceeded $100 billion, according to findings from the U.S. Government Accountability Office.
