Sean Buckley, Attorney for the United States, and Christopher G. Raia, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of ALI RASHAN on health care fraud charges under 28 U.S.C. § 515. According to a five-count indictment unsealed on June 25, 2025, RASHAN, a medical doctor, was the CEO and founder of ClearMD, a provider of COVID-19 testing services in New York City that fraudulently billed insurance companies for approximately $24 million for COVID-19 testing and submitted fraudulent medical records to further this fraudulent scheme. RASHAN appeared before U.S. Magistrate Judge Barbara Moses on June 25, and the case was assigned to Judge Paul A. Engelmayer.
“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.”
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“Ali Rashan allegedly facilitated an elaborate scheme using fabricated medical records to steal more than $24 million,” said 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.
According to court statements and public papers in this case:
From at least 2021 until in or around 2023, RASHAN, the founder and owner of ClearMD, a provider of medical testing services, agreed to submit and cause to be submitted to insurers fraudulent claims billing for unperformed and unrequested services purportedly provided to patients seeking COVID-19 testing, as well as fraudulent medical records in support of these fraudulent claims. For example, RASHAN authorized ClearMD to submit or cause the submission of thousands of claims for evaluation and management (“E/M”) services that were never provided. Furthermore, during the relevant period, RASHAN authorized ClearMD to submit claims to insurers for two to four COVID-19 diagnostic codes, although ClearMD had only administered one COVID-19 test to patients. In response to insurers’ requests for documentation supporting its reimbursement claims, RASHAN directed ClearMD workers to create a software program to fabricate bogus medical records to support ClearMD’s fraudulent billings. RASHAN authorized ClearMD to send these false medical records to insurers to mislead them about the services ClearMD had provided and to justify ClearMD’s retention of funds paid to ClearMD in response to fraudulent claims. This fraud caused losses of at least $24 million.
RASHAN, 41, of New York, New York, is charged with one count of conspiracy to commit health care fraud, which carries a maximum sentence of 20 years in prison; one count of health care fraud, which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to make false statements, which carries a maximum sentence of five years in prison; and one count of false statements relative
The maximum potential punishments in this case have been specified by Congress and are published here solely for informative purposes, as the defendant’s sentence will be determined by the judge.
Mr. Buckley applauded the FBI’s outstanding investigative job. Mr. Buckley also commended the Office of Personnel Management’s Inspector General and the U.S. Department of Labor’s Employee Benefits Security Administration for their cooperation with this inquiry.
The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for alleged involvement in health care fraud and illegal drug diversion schemes involving the submission of over $14.6 billion in alleged false billings and over 15.6 million pills of illegally diverted controlled substances. The defendants allegedly cheated programs designed to care for the elderly and crippled to enrich themselves. In conjunction with this statewide health care fraud crackdown, the government seized more than $245 million in cash, luxury automobiles, and other assets.
The Department’s website provides descriptions of each case included in today’s enforcement action.
The Office’s Complex Frauds and Cybercrime Unit is handling this case. Assistant US Attorneys Rushmi Bhaskaran, Timothy Capozzi, and Jaclyn Delligatti lead the prosecution.
The charges in the indictment are only allegations, and the defendant is assumed innocent unless and until proven guilty.
