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

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."

1. 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.

2. 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.

3. 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)