Long Island Man Gets Eight Years for $19.7M Medicaid Fraud

A Mount Sinai man who ran a sprawling Medicaid fraud scheme through two Long Island taxi and ambulette companies was sentenced Wednesday to more than eight years in federal prison, authorities announced.

Adnan Arshad, 47, also known as "Eddie," was ordered by United States District Judge Joan M. Leroi to serve eight years and one month after pleading guilty in June 2025 to conspiracy to commit health care fraud and conspiracy to commit money laundering, according to the U.S. Department of Health and Human Services Office of Inspector General.

Arshad owned MTK Taxi in Montauk and All-Star Taxi in Ronkonkoma. From December 2020 until his arrest in June 2024, both companies billed Medicaid for transporting patients to addiction treatment centers and other medical appointments — trips investigators said largely never happened. At least two claims were submitted for individuals who were already deceased, and others were filed for people who were hospitalized or incarcerated at the time.

The scheme siphoned approximately $19.7 million from the Medicaid program. Arshad spent the proceeds on multimillion-dollar homes and a fleet of luxury vehicles that included a Ferrari and multiple BMWs and Mercedes, federal authorities said. As part of his sentence, he must forfeit those properties and vehicles.

IRS Criminal Investigation Special Agent in Charge Harry Chavis Jr. said the plot "siphoned millions from Medicaid, depriving vulnerable patients of resources and fueling a lavish lifestyle built on fraud."

Five co-conspirators have also admitted to their roles in the case, prosecutors said. The sentencing took place at the federal courthouse in Central Islip.

The case was prosecuted by the Criminal Section of the U.S. Attorney's Office for the Eastern District of New York's Long Island Division, with investigative support from IRS Criminal Investigation and the HHS Office of Inspector General.