New York Attorney General Letitia James announced the sentencing of Imran Shams, a 66-year-old from California, to a prison term ranging from eight and one-third to twenty-five years. Shams was involved in a scheme that fraudulently billed Medicaid millions for medical testing services. He had previously pleaded guilty to Grand Larceny charges and agreed to pay $7 million in restitution.
Attorney General James stated, “When criminal organizations abuse our health care system, the most vulnerable patients suffer. Imram Shams and his accomplices ran a despicable scheme that used vulnerable New Yorkers to steal millions of dollars meant to provide care for low-income patients."
The case against Shams was part of a broader investigation into Multi-Specialty, a fraudulent clinic he secretly owned. Despite being banned from billing Medicaid due to an earlier conviction, Shams orchestrated illegal activities at the clinic by paying Medicaid recipients kickbacks for unnecessary evaluations. Licensed providers were complicit in submitting false claims for these services.
Shams also received kickbacks for referring patients for diagnostic tests conducted by companies owned by Tea Kaganovich and Ramazi Mitaishvili, both based in Brooklyn. Both individuals have been sentenced following their convictions on related charges.
Judge Michele Rodney of the New York County Supreme Court handed down Shams' sentence, which will run concurrently with his current federal sentence. His co-conspirators Kaganovich and Mitaishvili were ordered to pay over $18 million in restitution as part of their federal case.
The investigation involved multiple agencies including the New York State Office of the Medicaid Inspector General and the U.S. Department of Justice Medicare Strike Force. The prosecution team was led by Special Assistant Attorney General Chase Ruddy under NYC Regional Director Twan V. Bounds.
The New York Medicaid Fraud Control Unit (MFCU) played a key role in addressing this fraud case. MFCU's funding for fiscal year 2025 is largely provided by the U.S. Department of Health and Human Services with additional support from New York State.
Individuals with information about Medicaid provider fraud or nursing home abuse can report it confidentially through online channels or via hotline numbers provided by MFCU.