Authorities have arrested Dr. Ali Rashan, the CEO and founder of ClearMD, on charges related to a multimillion-dollar COVID-19 insurance fraud scheme. According to a five-count indictment unsealed on June 25, 2025, Rashan is accused of fraudulently billing insurance companies approximately $24 million for COVID-19 testing services in New York City.
Sean Buckley, acting under authority conferred by 28 U.S.C. § 515 as Attorney for the United States, stated: “While New Yorkers were doing their best to get through a public health crisis, Ali Rashan was allegedly cashing in on it.” He emphasized that his office will not tolerate exploitation of the pandemic response for personal profit.
Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office, remarked: “Ali Rashan allegedly facilitated an elaborate scheme using fabricated medical records to steal more than $24 million.” He noted that Rashan purportedly used his positions as a medical doctor and CEO to receive reimbursements from illegitimate claims.
Court documents reveal that from at least 2021 until about 2023, Rashan directed ClearMD to submit fraudulent claims for unperformed services and fabricated medical records to support these claims. The scheme involved billing insurers for multiple COVID-19 tests when only one test was administered and generating false documentation upon insurers’ requests.
Rashan faces charges including conspiracy to commit health care fraud, health care fraud, wire fraud, conspiracy to make false statements, and making false statements relating to health care matters. These charges carry potential maximum sentences ranging from five to twenty years in prison each.
The case is part of a nationwide law enforcement action targeting health care fraud and illegal drug diversion schemes involving over $14.6 billion in alleged false billings. In this coordinated effort against 324 defendants, authorities seized over $245 million in assets.
Assistant U.S. Attorneys Rushmi Bhaskaran, Timothy Capozzi, and Jaclyn Delligatti are prosecuting the case within the Office’s Complex Frauds and Cybercrime Unit. Mr. Buckley commended the FBI’s investigative work and acknowledged assistance from other federal agencies involved in this investigation.
The indictment contains allegations only; Rashan is presumed innocent unless proven guilty.
