NEW YORK, NY – Ali Rashan, 41, of New York, New York, is facing federal charges after allegedly orchestrating a brazen $24 million insurance fraud scheme during the height of the COVID-19 pandemic. The founder and CEO of ClearMD, a New York City-based testing provider, Rashan is accused of systematically billing insurance companies for tests never performed and backing up those claims with completely fabricated medical records.
The arrest, announced today by Acting U.S. Attorney Sean Buckley and FBI Assistant Director in Charge Christopher G. Raia, comes after a detailed investigation revealed a pattern of deceit. According to a five-count indictment unsealed June 25, 2025, Rashan directed ClearMD to submit thousands of fraudulent claims for “evaluation and management” (E/M) services that were never rendered to patients seeking COVID-19 testing. The scheme also involved billing for multiple tests – two to four – when only a single test had been administered.
“While New Yorkers were doing their best to get through a public health crisis, Ali Rashan was allegedly cashing in on it,” said Attorney for the United States Sean Buckley. “Our Office will not tolerate those who exploit the city’s pandemic response for personal profit.” The indictment details how Rashan didn’t just submit false claims; he actively concealed the fraud by instructing ClearMD staff to develop a software program to *create* false medical records, essentially forging documentation to justify the illegitimate billings.
“Ali Rashan allegedly facilitated an elaborate scheme using fabricated medical records to steal more than $24 million,” stated FBI Assistant Director in Charge Christopher G. Raia. “This defendant allegedly violated his dual authorities as a medical doctor and CEO to receive reimbursement from thousands of illegitimate claims. The FBI remains dedicated to investigating any individual who selfishly exploits our health care system for their personal benefit.” The alleged fraud spanned from at least 2021 through 2023, preying on a system already overwhelmed and strained.
Rashan was presented before U.S. Magistrate Judge Barbara Moses on June 25 and the case has been assigned to Judge Paul A. Engelmayer. He is charged with one count of conspiracy to commit health care fraud (maximum 20 years in prison), one count of health care fraud (maximum 10 years), one count of wire fraud (maximum 20 years), one count of conspiracy to make false statements (maximum 5 years), and one count of false statements relating to health care matters (maximum 5 years). These maximum sentences are set by Congress and subject to judicial discretion.
The investigation, lauded by Buckley as “outstanding,” also received assistance from the Office of Personnel Management’s Office of Inspector General and the U.S. Department of Labor, Employee Benefits Security Administration. This case serves as a stark reminder that even amidst public health emergencies, greed will find a way – and the Grimy Times will be there to expose it. Expect further updates as this case unfolds.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
