Indictment claims scam used corrupt doctors, lawyers, and financiers to defraud insurers through no-fault claims.
NYC Today
Federal prosecutors have charged Zhan Petrosyants, an associate of former New York City mayor Eric Adams, for allegedly leading a fraud ring that used corrupt doctors, lawyers, and financing companies to submit fraudulent no-fault insurance claims, driving up costs for all New York drivers. The indictment is part of a broader crackdown on insurance fraud schemes that Governor Kathy Hochul says are a major factor behind the state having the highest auto insurance rates in the country.
Insurance fraud schemes that exploit no-fault insurance laws are a significant driver of high auto insurance premiums in New York, which can cost drivers up to $4,000 per year. Hochul has proposed reforms to combat fraud and lawsuit abuse, but faces opposition from some lawyers and doctors who profit from the current system.
According to the indictment, Petrosyants and his co-conspirators submitted fraudulent no-fault insurance claims for unnecessary or never-performed medical services. They allegedly recruited physicians and psychologists to submit the false claims, which were then given an appearance of legitimacy through funding companies affiliated with a law firm that provided referral fees to Petrosyants.
In January of 2026, the U.S. Department of Justice reported a record-breaking year for False Claims Act recoveries, with the vast majority related to healthcare. What the DOJ report does not captu...