WHITE PLAINS, NY – Anthony Riccardi, a top executive at Connecticut-based Employee Benefit Solutions LLC (EBS), has admitted guilt in a sprawling $40 million fraud that pilfered healthcare funds from clients and deceived lenders, federal prosecutors announced today. Riccardi, 50%, co-owner and Executive Vice President of EBS, pled guilty to conspiracy to commit wire fraud and bank fraud before United States District Judge Philip M. Halpern.
The scheme, spanning from 2015 to 2019, centered on EBS’s role as a third-party administrator (TPA) for self-funded employee healthcare plans. Riccardi and his co-conspirators systematically misappropriated roughly $17.87 million intended to cover medical expenses for employees of a Westchester County, New York automobile dealership chain – identified as “Company-1” in court documents. Instead of remitting payments to healthcare providers, the funds were siphoned into EBS’s operating account for personal use.
According to investigators, the brazen operation involved falsified “check registers” sent to Company-1, listing payments that were *never* made to medical providers. Company-1 transferred approximately $26 million to EBS during this period, fully expecting the money to cover employee healthcare claims. Riccardi and his accomplices prioritized payments to providers connected to Company-1 executives or those likely to raise complaints, while ignoring others. The rest? Funneled into a lifestyle of luxury.
Bank records paint a damning picture: Company-1’s healthcare funds were used to pay Riccardi’s mortgage, finance a lavish lifestyle of boating, luxury cars, and golf, and cover personal credit card expenses. The fraud wasn’t simply about stealing; it was a calculated abuse of trust, exploiting a system designed to provide essential healthcare to working families. Prosecutors say EBS knowingly submitted millions of dollars in fraudulent or inflated claims, further compounding the deception.
“Anthony Riccardi admitted today to leading a brazen, widespread scheme… to abuse his position of trust by stealing millions in fiduciary money,” stated U.S. Attorney Damian Williams. “To keep the scheme going, Riccardi also defrauded lenders out of millions.” The U.S. Attorney’s Office has not yet announced sentencing details, but Riccardi now faces significant prison time for his crimes.
The case was investigated by the U.S. Secret Service, with assistance from other federal agencies. While the investigation is ongoing and further indictments are possible, Riccardi’s guilty plea marks a major step towards accountability in this complex and far-reaching financial fraud. The Grimy Times will continue to follow this case and report on any further developments.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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