Imadeldin Awad Khair, a 57-year-old Clifton, New Jersey, man, was sentenced to 216 months in federal prison today for orchestrating a sprawling health care fraud scheme through an ambulance company he illegally controlled. Despite being banned from federal health care programs since 2004, Khair, also known as Nadr Awad, ran K&S Invalid Coach behind a sham front, stealing over $9 million in Medicare and Medicaid reimbursements.
Khair was convicted on all 17 counts of an indictment that included health care fraud, obstructing a federal audit, tax evasion, and money laundering. The conviction came after a nine-day bench trial before U.S. District Judge Susan D. Wigenton, who handed down the sentence in Newark federal court. The judge also ordered Khair to serve three years of supervised release and pay $8.8 million in restitution.
After being excluded from Medicare and Medicaid for 11 years due to a prior state health care fraud conviction, Khair immediately set up K&S Invalid Coach under his brother’s name. He lied to authorities by using a business associate to claim Khair was a full-time employee elsewhere, while submitting falsified paystubs to back the cover-up. In reality, Khair was calling the shots, directing every aspect of the company’s operations.
When federal agents from the FBI and the U.S. Department of Health and Human Services raided K&S in 2014, Khair’s managers sent group texts instructing staff to tell agents his brother was in charge. On the first day of trial, Khair attempted to tamper with a government witness outside the courtroom, boasting he had two dozen employees ready to lie under oath about his control of the company.
Khair also ran a parallel payroll system, paying employees off the books in cash or handwritten checks to evade taxes. He forced staff to maintain two sets of books — one real, one fake — and sent only the falsified records to the payroll accountant. During a 2014 Department of Labor audit, Khair held a meeting where he ordered employees to lie about working more than 80 hours every two weeks and to alter time records accordingly.
The money laundering charges stemmed from K&S checks written and endorsed by Khair, made payable to “cash” or himself, used to fund the hidden payroll and enrich his personal accounts. U.S. Attorney Paul J. Fishman credited the FBI, HHS Office of Inspector General, and IRS-Criminal Investigation with dismantling the scheme that exploited emergency medical services for profit.
Related Federal Cases
- Ijaz Butt Gets 63 Months for $200M Credit Card Fraud · New Jersey
- Shawn Hilliard Gets 12 Years for $1.3M Bank Fraud Scheme · Pennsylvania
- Predator Caracciolo Gets 25 Years for Exploitation, Fraud · Massachusetts
- Julie Andresen Gets 15 Months for $956K Health Care Fraud · Pennsylvania
- Arts & Crafts Fraud: Medicare Hit for $200K · Pennsylvania
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News