Ten Charged With Stealing Taxpayer Money Through Medicaid and Public Assistance Fraud

DA will seek full restitution from defendants who stole more than $216K from taxpayers

MINEOLA, NY - Nassau County District Attorney Kathleen Rice announced today that a sweep targeting county residents who steal undeserved Medicaid and public assistance benefits has resulted in the arrest of ten people who collectively stole more than $216,000. The sweep was the result of joint investigations by the District Attorney’s Medicaid Fraud Unit and the Nassau County Department of Social Services, and Health and Human Services Medicaid Investigations Unit.

“We will be seeking full restitution for the money these defendants stole from the taxpayers,” Rice said. “I started the Medicaid Fraud Unit so this office could aggressively prosecute individuals who attempt to abuse a healthcare system set up to protect our society’s most vulnerable members. These people are hurting the system and stealing from taxpayers, and it must be stopped.”

Medicaid is a state-run program that provides free public health insurance to more than 40 million low-income individuals nationwide. It is funded jointly by federal, state, and county governments. Restitution from fraud cases, such as these, is returned to the funding agencies, with approximately 25 percent going to the state and another 25 percent going to the local county. 

In April 2007, Nassau County District Attorney Rice created a Medicaid Fraud Unit within her office. To date, the unit has been responsible for 40 arrests connected to more than $1.52 million in fraud and $380,000 in restitution to Nassau County.

The U.S. Government Accountability Office estimates that 10 percent of health care spending is lost to fraud and abuse. Nassau County spends in excess of $1 billion per year to fund its portion of the Medicaid mandate and New York State’s $45 billion annual bill is more than any other state in the country.

“The Nassau County Department of Social Services has one of the most sophisticated anti-fraud investigative units in the country. Through our exhaustive intelligence gathering and undercover work, anyone who tries to cheat the Nassau County taxpayers will be caught, prosecuted and sentenced to the fullest extent permissible by law,” said County Executive Tom Suozzi.“I commend the Nassau County’s Special and Medicaid Investigations Units and thank theDistrict Attorney's office for prosecuting individuals who have defrauded the Medicaid program.We will continue to work collaboratively to stamp out waste, fraud and abuse."

Charged in the most recent sweep are:

• Danial, 47, and Mojgan Kidanian, 42, of Roslyn, were arrested October 20 and charged with Grand Larceny in the Second Degree, Welfare Fraud in the Second Degree, and two counts of Offering a False Instrument for Filing in the First Degree. Rice said that between 2002 and 2009, the Kidanians stole more than $74,500 in Medicaid benefits. The couple claimed that Danial worked at M & D Super Discounts store in Richmond Hill, Queens, and earned $350 - $675 per week. In reality, not only did they own the store, but they owned the building where the store is located, and collected rent on four apartments located above the store. The building is fully paid off with no mortgage. The Kidanians also deposited more than $1 million into their personal bank accounts over a five-year period, and bought a home in Roslyn for $625,000. They each face up to 15 years in prison if convicted. They are represented by Philip Tomich, Esq. and are due back in court December 1.

• Rabi, 52, and Siona Kamel, 42, of Great Neck were arrested on September 17 and charged with Grand Larceny in the Second Degree, Welfare Fraud in the Second Degree, and Offering a False Instrument for Filing in the First Degree. Rice said that between June 1, 2003 and May 31, 2008, the Kamels concealed income from Rabi’s business and the ownership and sale of a second home. The Kamels claimed they earned between $31,000 and $38,000 per year. In reality, they earned between $95,851 and $147,172. Rice said the Kamels stole more than $54,000 in public assistance benefits during that five-year period. They each face up to 15 years in prison if convicted. They are represented by Marc Gann, Esq. and are due back in court November 16.

• Galit Fatir, 36, and her husband, Pedram Nazarieh, 38, of Great Neck were arrested yesterday and charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, and six counts of Offering a False Instrument for Filing in the First Degree. Rice said that between January 2006 and November 2008, the couple, who own a furniture store in New Jersey, stole more than $29,600 in public assistance benefits. The couple’s true income was between $216,000 and $532,000 per year. They also tried to hide the ownership of their home by submitting a fake lease for the property. Fatir is the sister of the above-mentioned Siona Kamel. They each face up to seven years in prison if convicted. They are represented by Marc Gann, Esq. They are due back in court October 28.

• Edgar Maldonado, 29, of Uniondale was arrested September 30 and charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, and three counts of Offering a False Instrument for Filing in the First Degree. Rice said that between February 2005 and November 2007, Maldonado stole more than $8,000 in Medicaid benefits after failing to report that he owned three houses and failed to disclose his rental income. He faces up to seven years in prison if convicted. He is represented by George Terezakis, Esq. and is due back in court today.

• Audra Saltman, 40, of Lawrence was arrested September 23 and charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, and two counts of Falsifying Business Records in the First Degree. Rice said that between January 2005 and June 2007, Saltman posed as a member of her former doctor’s office and called in prescriptions to multiple pharmacies. Saltman then picked up the medications and paid for them using more than $8,700 in Medicaid benefits. She faces up to seven years in prison if convicted. She is represented by Joel Reback, Esq. and is due back in court December 22.

• Marguarite Kundla, 49, of Bethpage was arrested yesterday and charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, and two counts of Falsifying Business Records in the First Degree. Rice said that between November 2006 and September 2007, Kundla wrongly received more than $32,000 in public assistance by failing to disclose her actual income and ownership interest in a hair salon. Rice said Kundla wrongfully received more than $24,000 in Medicaid benefits and more than $8,100 in child care services. She faces up to seven years in prison if convicted.

• Marlene Pessoa, 40, of Bay Shore was arrested October 14 and charged with Grand Larceny in the Second Degree, Welfare Fraud in the Second Degree, and Offering a False Instrument for Filing in the First Degree. Rice said that Pessoa moved out of Nassau County in 2001, yet continued to collect Medicaid from Nassau DSS. Pessoa also failed to report her income from her job at Winthrop Hospital and had a second welfare case with Suffolk DSS while her Nassau case was active by using her husband’s surname and a different social security number. Rice said she stole more than $9,300 in Medicaid benefits. She faces up to 15 years in prison if convicted. She is due back in court November 30.

Assistant District Attorneys Andrew Weiss and Christine Burke of the Government & Consumer Frauds Bureau are handling the cases for the District Attorney's Office.

The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.