Medicaid Fraud Case Spurs Push for Local Enforcement

Sen. Dean Murray says bill would give local investigators greater authority and a larger share of recovered taxpayer dollars.

The sentencing of a Suffolk County Medicaid fraudster who stole more than $19 million from taxpayers has prompted legislation that would give local prosecutors greater authority and financial incentive to pursue similar cases.

State Sen. Dean Murray said he is drafting the measure in partnership with Suffolk County District Attorney Ray Tierney’s office following the sentencing of Adnan Arshad, 47, of Mount Sinai. Arshad was sentenced July 22 in federal court in Central Islip to 97 months in prison and ordered to pay approximately $19.7 million in restitution after pleading guilty to conspiracy to commit healthcare fraud and conspiracy to commit money laundering.

Murray said New York spends more per capita on Medicaid than any other state, making it an attractive target for criminals while local investigators often lack the resources and incentive to aggressively pursue complex fraud cases.

“I’m working on legislation to give the local law enforcement agencies, the DA’s office and others more power to initiate these investigations,” Murray said. “And when they do break the case, to give them more of a piece of what they recover.”

Murray said he is working with Tierney’s office to finalize the bill’s language before introducing it in Albany.

“Right now, the local guys are doing all the work,” Murray said. “Then when they get to the point of prosecution, they hand it off to either the state or the feds, and the state and feds take most of the money they recover. I’m working on fixing that to give the locals more of what they recover.”

Suffolk County Executive Ed Romaine said the proposal would strengthen efforts to uncover fraud by giving local agencies a greater role in investigations.

“I strongly support Senator Murray’s efforts,” Romaine said. “I hope the rest of the state Legislature and the governor are supportive to allow localities to track down these fraudsters who are taking taxpayers’ money and enriching themselves. It’s time to wipe out corruption.”

Assemblyman Joseph DeStefano called the case “a theft from every hardworking New York taxpayer” and from vulnerable residents who depend on Medicaid.

“The Attorney General’s Office must make Medicaid fraud enforcement an even higher priority,” DeStefano said. “New Yorkers deserve confidence that taxpayer dollars are being protected and that benefits are reaching the people who truly need them—not criminals who exploit the system for personal gain.”