A medical doctor, Ali Rashan, has been arrested on charges of health care fraud. Rashan, who is the CEO and founder of ClearMD, a COVID-19 testing service provider in New York City, allegedly engaged in a scheme to fraudulently bill insurance companies for around $24 million. The indictment against Rashan was unsealed on June 25, 2025.
According to Sean Buckley, the Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, “While New Yorkers were doing their best to get through a public health crisis, Ali Rashan was allegedly cashing in on it.” Buckley emphasized that his office will not tolerate exploitation of the city’s pandemic response for personal profit.
Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office, stated that “Ali Rashan allegedly facilitated an elaborate scheme using fabricated medical records to steal more than $24 million.” He noted that Rashan used his position as both a medical doctor and CEO to submit thousands of illegitimate claims.
Court documents reveal that from at least 2021 until about 2023, Rashan directed ClearMD to submit fraudulent claims for services not performed or requested by patients seeking COVID-19 tests. These included billing for evaluation and management services never rendered and submitting multiple testing codes despite administering only one test per patient. To support these claims when insurers requested documentation, Rashan instructed staff to create false medical records.
Rashan faces several charges: conspiracy to commit health care fraud (maximum sentence of 20 years), health care fraud (maximum sentence of 10 years), wire fraud (maximum sentence of 20 years), conspiracy to make false statements (maximum sentence of five years), and false statements relating to health care matters (maximum sentence of five years). Sentencing will be determined by the judge if he is found guilty.
Buckley praised the FBI’s investigative work and acknowledged assistance from other agencies including the Office of Personnel Management’s Office of Inspector General and the U.S. Department of Labor’s Employee Benefits Security Administration.
This arrest is part of a broader law enforcement action involving criminal charges against 324 defendants nationwide related to health care fraud schemes amounting to over $14.6 billion in alleged false billings. The government has seized over $245 million in cash and assets during this operation.
The case is being prosecuted by Assistant U.S. Attorneys Rushmi Bhaskaran, Timothy Capozzi, and Jaclyn Delligatti from the Complex Frauds and Cybercrime Unit. It should be noted that all charges are allegations at this stage, with Rashan presumed innocent until proven guilty.
