Two defendants have been charged for their involvement in an alleged multi-million dollar medical care fraud scheme, the U.S. Attorney’s Office for the Eastern District of New York announced Thursday.
Saad Aziz and Zabed Chowdhury, also known as “Jared,” were charged in a federal court in Central Islip on Wednesday with conspiracy to commit healthcare fraud, healthcare fraud, conspiracy to defraud the U.S. and pay healthcare kickbacks, paying healthcare kickbacks and money laundering conspiracy. The two defendants face allegations of offering and paying healthcare kickbacks and also sending in fraudulent claims to Medicaid for ambulette services to medical appointments that were never actually conducted, or for which the costs were artificially exaggerated.
An ambulette refers to a non-emergency medical transport vehicle specifically created for people who may need help getting to a healthcare facility but do not need urgent medical care, according to Dream Care Rides.
“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,” U.S. Attorney for the Eastern District of New York Joseph Nocella Jr. said in a statement. “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 healthcare programs and to hold accountable those who seek to profit through fraud,” Nocella added.
Two Defendants Charged with MULTI-MILLION DOLLAR Health Care Fraud Scheme: Defendants Allegedly Billed Medicaid for Ambulette Services to Medical Appointments That Were Not Performed or Were Induced by Kickbacks
Joseph Nocella, Jr., United States Attorney for @EDNYnews, Naomi…— National Fraud Enforcement Division (@DOJFraudDiv) July 2, 2026
Chowdhury and Aziz were previously charged by complaint and are set to be arraigned at a future date, per the news release. The two defendants allegedly used “illicit proceeds” secured from their healthcare fraud scheme to, “among other things, fund their lifestyles and purchase multiple investment properties and homes with a combined value of approximately $6 million,” according to the U.S. Attorney’s Office.
“This scheme, as alleged, reflects an egregious abuse of the Medicaid program, diverting vital healthcare dollars away from the vulnerable individuals who depend on them,” Department of Health and Human Services’ Office of Inspector General (HHS‑OIG) Special Agent in Charge Naomi Gruchacz said in a statement. “HHS‑OIG remains steadfast in working with our law enforcement partners to protect taxpayer funds and uphold the integrity of federally funded healthcare programs.”
If convicted, both defendants face a prison sentence of up to 20 years, as well as restitution and forfeiture of at least $35 million, according to press releases.
“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,” Suffolk County District Attorney Raymond Tierney said. “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.”
The news comes as the Trump administration has been spearheading an effort to eradicate healthcare fraud nationwide. The White House claimed in a May 26 press release that President Donald Trump and Vice President JD Vance are “unleashing an unrelenting, full-scale assault on the fraudsters, scammers, and corrupt operators who have looted billions from American taxpayers.”
In 2023, the Department of Health and Human Services estimated that there was more than $100 billion in improper payments in total across the Medicare and Medicaid programs, according to the U.S. Government Accountability Office.
