Arrest - InsuranceFraud.org

Defendants Allegedly Billed Medicaid for Ambulette Services to Medical Appointments That Were Not Performed or Were Induced by Kickbacks

An indictment was filed yesterday in federal court in Central Islip charging Saad Aziz and Zabed Chowdhury, also known as “Jared,” with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, paying health care kickbacks, and money laundering conspiracy. The defendants allegedly offered and paid health care kickbacks and submitted fraudulent claims to Medicaid for ambulette services to medical appointments that were not performed, or the costs were artificially inflated. The defendants were previously charged by complaint and will be arraigned at a later date.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Raymond A. Tierney, Suffolk County District Attorney, announced the charges.

“As alleged, the defendants turned a transportation program intended to provide vulnerable Medicaid beneficiaries with access to critical medical care into a vehicle for personal enrichment,” stated United States Attorney Nocella. “By paying illegal kickbacks, billing for rides that were never provided, and inflating reimbursement claims through false information, they allegedly stole tens of millions of taxpayer dollars. It is a priority of the Office and the Administration to protect the integrity of federally funded health care programs and to hold accountable those who seek to profit through fraud.”

Mr. Nocella expressed his appreciation to Homeland Security Investigations (HSI) New York’s Homeland Security Task Force John F. Kennedy International Airport Financial Crimes Group and the Office of the New York State Comptroller for their work on the case.

“This scheme, as alleged, reflects an egregious abuse of the Medicaid program, diverting vital health care dollars away from the vulnerable individuals who depend on them,” stated HHS-OIG Special Agent in Charge Gruchacz. “HHS‑OIG remains steadfast in working with our law enforcement partners to protect taxpayer funds and uphold the integrity of federally funded health care programs.”

IRS-CI New York Special Agent in Charge, Chavis, Jr. stated: “This scheme took advantage of a program meant to help people get to the medical care they rely on. By gaming the system for their own benefit, the defendants didn’t just misuse taxpayer money — they made it harder for people who genuinely need support. We’re committed to protecting public funds and making sure anyone who tries to commit fraud is held responsible.”

“Medicaid’s transportation benefit exists so that vulnerable people can get the care they need. These defendants allegedly exploited that lifeline, paying kickbacks and billing for trips that never happened in order to enrich themselves at the expense of taxpayers,” stated Suffolk County District Attorney Tierney. “I thank the United States Attorney’s Office, HHS-OIG, IRS-CI, and the State Comptroller for their partnership in rooting out this alleged scheme.”

As set forth in court filings, the defendants owned and operated Tri-Hamlet Taxi Inc. From approximately January 2019 to October 2025, the defendants paid illegal health care kickbacks to Medicaid beneficiaries to induce them to request medical transportation services from Tri-Hamlet Taxi, primarily for purported necessary methadone treatment. In reality, the defendants often did not provide the medical transportation services for which they billed Medicaid, yet, fraudulently submitted millions of dollars in claims for these nonexistent trips.

The defendants also systematically inflated their Medicaid reimbursements. Although numerous addiction treatment centers on Long Island were available to beneficiaries, the defendants directed beneficiaries to request transportation to addiction treatment centers in New York City and to provide false pickup or drop-off addresses so they could bill Medicaid for longer, more expensive trips. Through this scheme, the defendants submitted more than $18 million in claims for rides exceeding 75 miles and, overall, fraudulently billed Medicaid more than $35 million.

The defendants used the illicit proceeds of the scheme to, among other things, fund their lifestyles and purchase multiple investment properties and homes with a combined value of approximately $6 million.

If convicted of the charges, the defendants each face up to 20 years in prison, and restitution and forfeiture of at least $35 million, including several real properties and 15 bank accounts.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Adam R. Toporovsky is in charge of the prosecution, with assistance from Paralegal Specialist Janelle Robinson. Assistant United States Attorney Madeline O’Connor of the Office’s Asset Forfeiture Section is handling forfeiture matters.

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is focused on investigating and prosecuting those who commit fraud against the American people.

The Defendants:

SAAD AZIZ
Age: 52
Shirley, New York

ZABED CHOWDHURY (also known as “Jared”)
Age: 49
Lake Ronkonkoma, New York

E.D.N.Y. Docket No. 26-CR-201 (NJC)

2026.07.01_filed_indictment.pdf

2026.07.01_tri-hamlet_bond_memo.pdf

Three people were arrested Wednesday after investigators said they intentionally staged a two-vehicle crash in Southwest Miami-Dade as part of an alleged insurance fraud scheme.

Lourdes Suyapa Banegas, 49, was charged with second-degree felony insurance fraud involving a staged accident, according to a Miami-Dade Sheriff’s Office arrest report.

Her co-defendants, Bruno Adriano Robles, 18, and Oreste Duarte-Castillo, 41, face the same charge.

Deputies responded around 2:50 p.m. Wednesday to a reported crash at the intersection of Southwest 12th Street and Southwest 72nd Avenue.

According to the arrest report, Duarte-Castillo told deputies he was driving a 2021 Honda Civic north on Southwest 72nd Avenue with Robles as his passenger when the vehicle struck a stopped 2015 Ford Fusion driven by Banegas.

Banegas told deputies she had come to a complete stop at the intersection and was rear-ended while her two minor children were inside the vehicle.

Responding deputies became suspicious after observing the crash scene and requested a criminal investigator based on their training and experience, the report states.

Investigators said they later determined the collision had been pre-planned and that all three defendants had allegedly agreed to participate in exchange for compensation.

According to the investigation, the defendants intentionally organized the crash to generate an official crash report that could later be used to support personal injury protection and other motor vehicle insurance claims.

Authorities said neither the defendants nor Banegas’ children were injured, and no one requested medical treatment at the scene.

All three suspects were arrested and transported to the Turner Guilford Knight Correctional Center without incident.

Banegas later appeared in bond court, where a judge found probable cause, set her bond at $5,000 and ordered an immigration hold.

Duarte-Castillo also appeared before a judge, who found probable cause and set his bond at $5,000.

Robles likewise received a $5,000 bond after a judge found probable cause.

A local mayor who’s been accused of insurance fraud has been bound over to District Court after a judge found there was sufficient evidence he allegedly lied to insurance agents about the price of his boat.

David Dwyane Price, 62, was sworn in as mayor of Spencer on Jan. 26, and on Feb. 13, charges were filed against him for one felony count of insurance fraud.

According to court documents, Price filed a claim with his insurance company, the Idaho Farm Bureau, for damages to his 2006 Northwest Jet Boat on April 29, 2024. A repair estimate from Precision Inc. to the Farm Bureau totaled $149,793.20, and the insurance company determined the boat was a total loss.

Farm Bureau offered Price a settlement option with an all-cash value of $110,000, and the agency would keep the boat.

A handwritten bill of sale was sent to a Farm Bureau agent stating that Price bought the boat for $215,000 on Jan. 12, 2022.

A special investigator for the insurance company discovered additional documentation from the Idaho Department of Motor Vehicles showing the boat was purchased for $20,000. The original owner of the boat was also contacted, and he told the investigator he had sold it to Price for $86,500.

Arguments made during Price’s preliminary hearing
During Tuesday’s preliminary hearing, the state, represented by Deputy Attorney General Sam Camp, introduced five witnesses who testified about Price’s insurance policy and corroborated the findings in the court documents.

Price’s defense attorney, Ronald Swafford, argued that the allegations against Price were a disaster due to errors and what he believes is a lack of knowledge about the boat’s true value.

“If you go through the file, you’ll find that it talks about two or three different boats, two or three different VIN numbers, the values of which are without a basis or a foundation, and then offers opinions on values that weren’t for a custom-made boat,” Swafford said. “It’s a conglomeration of errors and mistakes all the way through.”

Throughout the hearing, Swafford attacked the complaint filed against Price, arguing that the boat’s listed year, 2006, was incorrect and that the evidence presented to the witnesses showed a different year for the boat.

The boat at the heart of this issue is a 2005 Northwest Jet boat.

The other area in which Swafford took issue with the state’s defense was the bill of sale provided to the Idaho Farm Bureau.

During the testimony of the first witness, insurance agent Riley Jeppesen said that when Price first filed the claim, a bill of sale was required to establish the boat’s value.

While he testified that he did not know who had dropped off the bill of sale, he had obtained one with Price’s name on it and had previously encouraged Price to submit one.

Swafford argues that Price never intended to defraud anyone, but rather to show that the boat was worth $215,000 and to hope that the insurance policy he had on the boat would pay out $150,000.

“All he was asking for was for Farm Bureau to honor the policy and pay 150,000 to fix his boat,” Swafford said.

Swafford also argued that the value given by Farm Bureau was not accurate to the “real” value of Price’s boat.

One of the points he made was that the use of CCCOne, an estimation software used by Farm Bureau, only showed values for “assembly line boats” or “fabricated” boats, and nothing regarding custom modifications.

“(Farm Bureau) haven’t even come close to this to give you any figure of what that boat was worth to show that anything was fraudulent,” Swafford said. “We don’t know what it was worth.”

Deputy Attorney General Sam Camp argued that the main issue is not the boat’s value but the actions allegedly committed by Price while interacting with Jeppesen.

“He submitted a document to the insurance company for $215,000 on one occasion, and another occasion for the DMV. I’m assuming, I guess, to maybe avoid some taxes, a claim that he paid $20,000 for the boat,” Camp said.

The final witness for the state, Aaron Eckert, testified about selling the boat to Price in January 2022.

Eckert said he had sold the boat to Price for $86,500 and that the handwritten bill of sale given to the DMV was in someone else’s handwriting, not his.

“This is not my handwriting on there,” Eckert said. “Someone else wrote out the details of what was done, I think, after the fact.”

Judge’s decision
Magistrate Judge Wiley Dennert told the two attorneys that, under Idaho Code and case law governing preliminary hearings, the state need not prove the defendant guilty. The state needs only to prove, under a reasonable view of the evidence and any allowable inferences, that a defendant likely committed the offense.

Looking at the allegations in the complaint, which state that on or about July 31, 2024, Price submitted documentation alleging he paid $215,000 for the boat, when what was presented proved otherwise.

The evidence given to the DMV stated that he paid $20,000 for the boat, and Eckert’s statement that he had sold the boat to Price for $86,500.

“The defendant David Wayne Price did in fact submit a false statement to his insurance company that he had paid $215,000 for the boat when he had not paid that amount,” Dennert said.

Price is scheduled for his arraignment in District Court at 8:45 a.m. on July 20 before District Judge Stevan Thompson or Michael Whyte.

Though Price has been charged with this crime, it does not necessarily mean he committed it. Everyone is presumed innocent until they are proven guilty.

A longtime claims manager for Auto-Owners Insurance Co. has been charged with defrauding the company of more than $43,000.

Ian V. Eisnaugle, 41, of Hendersonville, North Carolina, was charged with insurance fraud and forgery in June after he reportedly submitted forged rental invoices for a residence in which he did not live, the NC Department of Insurance said in a bulletin.

Eisnaugle’s Linkedin page shows he was a claims manager, adjuster, and most recently, an arbitrator and trainer at Auto-Owners in the Asheville, North Carolina area. He apparently left the insurer in February of this year, the Linkedin page shows.

The arrest warrant in Henderson County, near Asheville, indicates that Eisnaugle filed a claim with Auto-Owners in September 2024, then submitted the invoices showing he had incurred the rental expenses at a home in Nashville, Tennessee. He was not living at the address during the claim period, according to the arrest warrant, which was signed by an investigator with the NCDOI. Auto-Owners initiated the complaint and investigation, the DOI noted.

“The defendant acted without authority and with the intent to injure and defraud with deceit,” the warrant reads.

Eisnaugle was released on bond after his arrest. A hearing is set for Aug. 25.

He was granted an adjuster license in North Carolina in February of this year, the National Association of Insurance Commissioners license page shows. Eisnaugle could not be reached at the phone number and email address listed on the license page. An Auto-Owners communications manager said the company has no comment about the case.

Two men were arrested by New York State Police after investigators determined that the reported theft of a classic car from a Somers shopping center had been fabricated in an alleged attempt to collect insurance money.

According to State Police, Salvatore J. Amato, 81, of Somers, reported on June 24 that his 1981 Fiat Spider had been stolen earlier that morning from the ACME Markets parking lot on U.S. Route 6.

Troopers and investigators reviewed license plate reader data and surveillance video from the shopping plaza during the investigation. Police said the evidence showed the vehicle had never entered the parking lot as reported.

According to police, when confronted with the evidence, Amato admitted that he had fabricated the theft report in an attempt to obtain insurance proceeds. Investigators said he also admitted arranging for the vehicle to be left in the Bronx and that his brother, Frank Amato, 83, of Long Island, drove him back to Somers.

Salvatore Amato was charged with third-degree insurance fraud, a Class D felony; first-degree falsifying business records, a Class E felony; false written statement, a Class A misdemeanor; falsely reporting an incident in the third degree, a Class A misdemeanor; and fifth-degree conspiracy, a Class B misdemeanor.

Frank Amato was charged with first-degree falsifying business records, a Class E felony; false written statement, a Class A misdemeanor; falsely reporting an incident in the third degree, a Class A misdemeanor; and fifth-degree conspiracy, a Class B misdemeanor.

Following consultation with the Westchester County District Attorney’s Office, both men were processed and released on their own recognizance. They are scheduled to appear in Somers Justice Court at a later date.

Louisiana Attorney General Liz Murrill announced the arrests of 21 people Wednesday in a Medicaid fraud operation tied to allegations of false billing, false public records and abuse involving vulnerable people.

Murrill said the arrests were made by the Louisiana Medicaid Fraud Control Unit, which investigates Medicaid provider fraud and allegations of abuse and neglect involving vulnerable people in health care facilities.

The attorney general also announced the unit has been elevated to a standalone division within the Louisiana Department of Justice. Matt Stafford, who currently leads the unit, has been promoted to director of the new division.

“I will not stop until the people’s money is returned and those who break the law face Louisiana justice. The men and women of Louisiana get up and go to work every single day to provide for their families. Their tax dollars are intended for those in need. Nothing is more offensive than those who manipulate the system for their own benefit,” Murrill said.

The cases listed by the Attorney General’s Office include allegations that direct service workers billed Medicaid for care that was not provided, including during times when recipients were hospitalized, in daycare, incarcerated or no longer receiving services.

Other cases involve allegations of false CPR certification records, false insurance documents and abuse or battery of people with infirmities.

The suspects listed by state officials are from all across Louisiana and beyond, including Baton Rouge, Alexandria, Shreveport, Monroe, Ruston, Crowley, Lake Charles, Hammond, Bunkie, Collinston, Mount Hermon, Natchez, Mississippi, and Aubrey, Texas.

Ashley Griffin
Tongia HIll-Moy
Felicia Douglas
Adrian Lacour Brooks
Carolyn Brown
Mercedez Harris
Constance Jones
Tiera Green
Amanda Taylor
Valerie Roy
Analeah Turlington
Chrisshantenite Paul
Asha Clark
Arthur Bracey
Christopher Zone
Kirstan Wells
Jaquana Robertson
Victoria Bertrand Trahan
Moriah Edwards
Joneisha Dunn
Olivia Day

Other cases involve allegations of false CPR certification records, false insurance documents and abuse or battery of people with infirmities.

This announcement comes on the heels of a grand jury in Orleans Parish announcing an investigation into Murrill allegedly making threats against New Orleans mayor Helena Moreno and other city officials.

The Massachusetts Attorney General’s Office (AGO) announced today that Quincy-based roofing company The Roof Kings, LLC and its owner, Craig Galligan, 55, of Quincy, were indicted by a Norfolk County Grand Jury on June 25, 2026, on four counts each of Workers’ Compensation Insurance Fraud and one count each of Larceny Over $1,200. Galligan and The Roof Kings are scheduled to be arraigned in the Norfolk Superior Court on Friday, July 17, 2026.

According to the AGO, as the owner of The Roof Kings, Galligan was responsible for reporting accurate information on the type of work laborers performed and payroll information to insurers. Workers’ compensation insurance premiums are based, in part, on the type of work performed and the amount of payroll. Massachusetts law requires employers to accurately report information about their employees, payroll, and uninsured subcontractors so workers’ compensation insurers can properly calculate insurance premiums.

The AGO alleges that, during multiple audits for policies issued between 2021 and 2024, Galligan fraudulently represented that The Roof Kings had little or no payroll and only limited uninsured labor. An investigation by the AGO and the Insurance Fraud Bureau of Massachusetts later identified more than $1.5 million in previously undisclosed payroll payments issued through company bank accounts between 2018 and 2024. As a result of The Roof Kings’ underreporting, the AGO alleges that the company substantially underpaid workers’ compensation insurance premiums owed to A.I.M. Mutual Insurance Companies, a Massachusetts-based insurer headquartered in Burlington, avoiding approximately $584,962 in workers’ compensation insurance premiums between 2018 and 2024.

All of these charges are allegations, and the defendants are presumed innocent until proven guilty.

This matter is being handled by Assistant Attorney General Kaelyn Hilliard and Criminal Investigator Dennis O’Connor of the AGO’s Insurance and Unemployment Fraud Division, along with Victim Witness Advocate Lia Panetta of the AGO’s Victim Service Division, with assistance from investigators at the Insurance Fraud Bureau of Massachusetts.

The South Carolina Law Enforcement Division (SLED) has charged a man with Insurance fraud, according to reports.

On Friday, SLED charged Richard Willing, 51, Florence, with presenting a false claim for insurance payment – value $10,000 or more, according to SLED.

In May of 2025, Willing knowingly submitted a false claim for insurance payment to Progressive Direct Insurance Company in Florence County, says SLED.

Willing claimed his camper was stolen, according to SLED.

Willing paid to leave his camper on a lot before the alleged theft, according to witnesses’ statements.

Progressive denied the stolen camper claim, according to the arrest report.

Willing’s was booked into the Florence County Detention Center.

A Walcott man is in the Scott County Jail on a $75,000 cash-only bond after the Iowa Insurance Fraud Bureau said he wrote multiple life insurance policies on family members without their knowledge and collected commissions on the policies.

Criminal complaints filed in the case say that between February 21, 2024 and January 24, 2025, the defendant, identified as Stanley Blythe, 61, “while acting as an insurance producer, wrote numerous life insurance policies on family members who were not aware that these policies were being written on them. The defendant signed these policies on behalf of the insured subjects without their knowledge or permission. The defendant’s scheme resulted in at least $36,360.76 worth of commissions being paid to him.”

Blythe allegedly wrote life insurance policies on unknowing family members on multiple occasions. He electronically signed the family members’ names and listed himself as the beneficiary on some policies while receiving commissionable premiums.

On February 21, 2024, Blythe allegedly wrote a life insurance policy for a family member who was not aware that the policy was being written on them. He electronically signed the name of the family member and listed himself as the beneficiary. This resulted in a commissionable premium of $1,603.36 to be paid to Blythe.

On March 21, 2024, Blythe allegedly used a family member’s personal identification information to obtain a life insurance policy in that person’s name. His actions were committed without the family member’s knowledge and resulted in a commissionable premium of $994.72.

On July 1, 2024, Blythe is accused of using a family member’s personal identification information to obtain a life insurance policy in that person’s name. The actions were committed without the family member’s knowledge and resulted in a commissionable premium of $6,283.22.

On August 1, 2024, Blythe allegedly used a family member’s personal identification information to obtain a life insurance policy for that person. His actions were committed without the family member’s knowledge and resulted in a commissionable premium of $5,984.00.

On September 5, 2024, Blythe is accused of using a family member’s personal identification information to obtain a life insurance policy in that person’s name. These actions were committed without the family member’s knowledge and resulted in a commissionable premium of $3,766.78.

On September 21, 2024, Blythe allegedly used a family member’s personal identification information to obtain a life insurance policy in that person’s name and listed himself as the beneficiary. This was committed without the family member’s knowledge and resulted in a commissionable premium of $1,513.79.

On October 7, 2024, Blythe allegedly wrote a life insurance policy for a family member who was not aware that a policy was being written on them. Blythe electronically signed the name of the family member and listed himself as the beneficiary of the life insurance policy. The defendant electronically signed this family member’s name.

On October 15, 2024, Blythe is accused of writing a life insurance policy for a family member who was not aware that the policy was being written on them. He electronically signed the family member’s name and listed himself as the beneficiary of the life insurance policy. This resulted in a commissionable premium of $2,329.00.

On November 12, 2024, Blythe allegedly used a family member’s personal identification information to obtain a life insurance policy in the name of the family member. The defendant’s actions were committed without the family member’s knowledge. The defendant’s actions resulted in a commissionable premium of $3,375.00.

On November 12, 2024, Blythe allegedly wrote a life insurance policy for a family member who was not aware that the policy was being written on them. He electronically signed the family member’s name and listed himself as the beneficiary.

On January 24, 2025, Blythe allegedly wrote a life insurance policy for a family member who was not aware that the policy was being written on them. He electronically signed the family member’s name and listed himself as the beneficiary. This resulted in a commissionable premium of $3,293.00.

Blythe was arrested on a warrant on 11 counts of forgery, fraudulent solicitation, 11 counts of identity theft and ongoing criminal activity. He is being held in the Scott County Jail on a $75,000 cash-only bond and is waiting on his next court appearance.

State prosecutors in New London Superior Court are accusing a Connecticut woman of stealing from the Medicaid program.

Ashley Chapman, 27, of Baltic, was arrested on June 15 by inspectors from the Medicaid Fraud Control Unit in the Office of the Chief State’s Attorney.

A report from the Connecticut Division of Criminal Justice Thursday evening reports that Chapman has been charged with one count of health insurance fraud and another count of first-degree larceny by defrauding a public community.

Both charges are classified as Class B felonies. They’re each punishable by up to 20 years in prison.

Prosecutors say that Chapman submitted time sheets and was paid for services she did not provide while working as a personal care assistant.

The PCA program is funded by Medicaid and offers recipients who have permanent, severe and chronic disabilities money to hire PCAs to physically help them with daily self-care activities. This enables them to stay in their homes and remain present in the community.

The DCJ report notes that from Nov. 23, 2024, through Feb. 23, 2025, Chapman was submitting time sheets that claimed she was giving services to a recipient in their home, when that individual was out of state.

The total amount stolen by Chapman is $7,242, according to prosecutors.

The money profited by Chapman would constitute the crime of first-degree larceny by defrauding a public community, while the submission of claims to the Connecticut Department of Social Services by Chapman would represent health insurance fraud.

Following her arrest last week, Chapman was released on a promise to appear in court.

The report says she was scheduled to appear in New London Superior Court on Thursday.

Prosecutors emphasize that Chapman is considered innocent until or unless proven guilty beyond reasonable doubt in a court of law.

The Medicaid Fraud Control Unit has investigated the case and will also prosecute it.

In the report, the unit expressed gratitude to DSS’ Office of Quality Assurance and the Norwich Police Department for their respective contributions.

Two Defendants Charged with Multi-Million Dollar Health Care Fraud Scheme