Arrests For Scheme To Defraud Medicaid Out Of Millions: Prosecutors

CENTRAL ISLIP, NY — Nine people, including three from Nassau County, have been charged in connection with alleged schemes to defraud Medicare and Medicaid, federal prosecutors announced.

Among those charged include: Rehman Diwan, 24, of Hicksville; Faisal Shamsi (also known as "Jimmy"), 49, of Massapequa and Waqas Shamsi (also known as "Ricky), 44, of Massapequa.

Diwan, Shasmi and Shasmi were among eight who were arrested on June 11 on an eight-count indictment charging them with conspiracy to commit health care fraud, conspiracy to defraud the United States and pay health care kickbacks, paying health care kickbacks and money laundering, U.S. Attorney Breon Peace said.

From approximately December 2020 to the present, the defendants paid illegal health care
kickbacks to Medicaid beneficiaries so that those beneficiaries would order medical
order medical transportation services specifically from the defendants, prosecutors claim.

In total, the defendants and their transportation companies fraudulently billed Medicaid millions of dollars for these services throughout the scheme. At least two claims were submitted to Medicaid for individuals who were deceased, and some claims were submitted for individuals who were hospitalized or incarcerated.

"It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable," Attorney General Merrick Garland said.