Sohail Mamdani, 46, of Los Banos, was indicted by a federal grand jury on October 20, 2022, with mail fraud, money laundering in connection with a disability insurance fraud scheme, unlawful use of a DEA registration number, and fraudulently gaining possession of a prohibited substance.
Despite having never met or treated the bulk of the claimants, Mamdani allegedly submitted over 6,000 initial claims to EDD for disability insurance benefits between February 2020 and March 2022, according to court records. Mamdani would charge the alleged patient a fee for both the initial disability claim and any supplementary claims as part of the deception. In addition, Mamdani organised financial transactions to get around federal reporting regulations. According to the inquiry, EDD could have intended to lose up to $99 million, but could really have lost more than $53 million.
A disability insurance programme sponsored by the California Employment Development Department (EDD) provides worker-funded benefits to persons who meet certain criteria and have had those criteria confirmed by their doctor or medical professional. Mamdani was a medical professional who ran a walk-in clinic in Los Banos named Walk-In Medical Clinic.
Mamdani is accused separately of exploiting a different doctor’s DEA registration number for illicitly obtaining restricted medications. Mamdani also created a number of false prescriptions in other people’s names in order to obtain restricted medications for himself.
Mamdani faces a possible sentence of 20 years in prison for mail fraud, as well as a fine of up to $250,000 or double the gross gain or gross loss brought on by the deception, whichever is greater. If found guilty of the money laundering accusations, he could get a maximum sentence of 20 years in jail and a fine of up to $500,000 or twice the value of the property involved in the transactions. For each of the drug-related crimes, the maximum statutory punishment is four years in jail and a fine of $250,000. However, the court would decide on any punishment after taking into account any applicable statutory criteria and the Federal Sentencing Guidelines, which evaluate a number of issues. The defendant is deemed innocent until and unless the charges are proved to be true beyond a reasonable doubt; the allegations are simply accusations.
The Drug Enforcement Administration, the Federal Bureau of Investigation, and the California Employment Development Department all conducted investigations that led to the creation of this case. The case is being brought forth by assistant US attorneys Michael Tierney and Alexandre Dempsey.
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