iFraud Deep Dive

S2 E34 The No Fault Insurance Ghost Clinic Heist

iFraud Foundation Season 2 Episode 34

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0:00 | 20:10

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On this episode of the Deep Dive…
We examine a newly unsealed federal indictment detailing an alleged multi-year, multi-million-dollar no-fault insurance fraud scheme centered around Zhan Petrosyants, also known as “Johnny.” Prosecutors allege that between 2018 and 2023, Petrosyants orchestrated a sophisticated operation designed to exploit New York’s no-fault insurance system—submitting claims for treatments that were never rendered, medically unnecessary, or grossly inflated.

At the core of the alleged scheme: shell medical entities that appeared legitimate on paper but were not owned or controlled by licensed professionals, as required by law. These entities, paired with the recruitment of credentialed clinicians whose identities were used to legitimize fraudulent billing, created a pipeline for tens of millions of dollars in illicit claims.

But the operation didn’t stop at billing. According to the indictment, the scheme leveraged funding companies to accelerate cash flow—securing advances on fraudulent claims and layering the proceeds through shell corporations and business accounts to conceal their origin.

This case pulls back the curtain on the organized, calculated nature of modern insurance fraud—where medical, financial, and corporate structures are weaponized in concert. It also highlights a critical reality: these aren’t isolated incidents—they’re coordinated enterprises designed to exploit systemic vulnerabilities.

As the government moves to seize assets tied to the alleged fraud, this indictment serves as both a roadmap of the scheme and a stark reminder of the scale, sophistication, and impact of no-fault abuse on the broader system.

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