Law & Justice

Paterson Man Charged with Healthcare Fraud, Money Laundering


NEWARK, NJ – A Passaic County man who operates a lucrative New Jersey ambulance company was arrested this morning at his home by special agents of the FBI and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) on charges he ran the service after being barred from doing business with Medicare and laundered government payments, U.S. Attorney Paul J. Fishman announced.

Imadeldin Awad Khair, 54, of Paterson, New Jersey, is charged by complaint with one count of health care fraud and one count of money laundering. He is expected to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

According to the criminal complaint unsealed today:

Sign Up for E-News

As a result of his 2003 conviction on a New Jersey state health care charge, Khair was excluded from participating in any capacity in Medicare, Medicaid, or other federal health care program for a minimum period of 11 years.
Despite this, Khair has – since 2011 – been an operator and a de facto owner of K & S Invalid Coach, a licensed ambulance and wheelchair transportation service operating out of Clifton, New Jersey. Nearly all of K & S’ patients are Medicare beneficiaries requiring regular transportation to dialysis treatment. Since September 2011, Medicare Part B has paid more than $6 million in claims submitted by K & S. Thus far in 2014, K & S has been in the top 3 percent of the more than 400 ambulance transport providers in the state of New Jersey, as measured by receipt of payments from Medicare.

Since 2011, Khair and others at K & S have concealed his involvement at K & S from Medicare, including his substantial control over K & S’s bank accounts and operations, including the authority to hire and terminate employees, determine employee salaries, and enforce company policies. Since 2011, Khair has received more than $485,000 from K & S, and additional funds have been transferred to his wife.

After Medicare had directly deposited the money into a bank account in the name of K & S, Khair transferred money to various other accounts. In particular, on Nov. 15 2012, Khair wrote a check for $15,500 against a K & S operating account, made payable to an individual with the initials “E.A.,” endorsed by Khair, and deposited into an account in the name of E.A. Including this and other transactions from K & S operating accounts, Khair caused more than $86,000 to be transferred to that account. On Feb. 8, 2013, Khair caused a wire transfer in the amount of $86,295 to be made from the bank account in the name of E.A. for the purpose of completing a real estate transaction through which the property in which Khair resides was nominally transferred to E.A.
In filing the complaint, the United States is seeking to forfeit the property as proceeds and property involved in money laundering.
Each of the two counts with which Khair is charged carry a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and HHS-OIG, under the direction of Special Agent in Charge Thomas O’Donnell, with the ongoing investigation leading to these charges.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Danielle M. Corcione of the U.S. Attorney’s Health Care and Government Fraud Unit, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News


Upcoming Events


Mon, May 28, 1:00 PM

Roberto Clemente Park, Paterson

Memorial Day Celebration

Arts & Entertainment


Sat, June 2, 8:30 AM

LaNeves Restaurant, Haledon

2018 Parent Conference & Breakfast


Clara Maass Medical Center offers Life-Saving Narcan Training Sessions

May 25, 2018

Belleville, NJ – In response to a national call from the Surgeon General of the United States emphasizing the importance of Narcan, a life-saving medication that can stop or reverse the effects of an opioid overdose, the Center of Excellence for Latino Health at Clara Maass Medical Center will host training sessions in May and June to educate the community on the use of Opioids. The ...

Free Archery Classes

Archery is one of the world's oldest sports, and you can enjoy free classes hosted by the Passaic County Board of Chosen Freeholders and Rutgers 4-H Cooperative Extension of Passaic County. From 2pm-4pm on June 2nd, June 16th, July 7th, and July 21st, people of all ages are welcome to take free archery classes at the Great Meadow in Garret Mountain Reservation, located at 8 Mountain Ave ...

TAPinto Featured Franchisee: Steve Lenox of TAPinto Paterson

This week's feature will focus on TAPinto Paterson's franchisee, Steve Lenox. Find out how the current owner of a public affairs firm went from a former State Director for Senator Frank Lautenberg to a proud TAPinto franchisee for New Jersey's third largest city.


Q. When did you join

I joined in September, ...

Who Let the Dogs Out? Passaic County K-9 Unit Wows Children and Seniors

May 24, 2018

TOTOWA, NJ- With schoolchildren, senior citizens, and law enforcement all in one room any politician would have been thrilled to take part in Thursday’s cross generational event in Totowa that featured a reading of children’s book “Roscoe the K-9 Cop,” authored by Kristen Sondej, and several members of the Passaic County Sheriff’s Department’s K-9 ...

Vehicular Homicide Charges for Driver of Paramus School Bus

May 24, 2018

MORRISTOWN, NJ - The driver of a school bus involved in a crash on Route 80 last week that killed two people faces two counts of second-degree vehicular homicide/death by auto, it was announced today.

The driver, Hudy Muldrow, 77, of Woodland Park, attempted to make an illegal U-Turn on the highway in an attempt to find his way to Waterloo Village, the planned destination of the bus that was ...

Lieutenant Governor Sheila Oliver Testimony on Proposal to Divert Affordable Housing Funds

PATERSON, NJ- TAPinto Paterson earlier reported on the response of local community leaders and activists on a proposal by Governor Phil Murphy to divert $46 million from the Affordable Housing Trust Fund (AHTF) which they wrote in a letter signed by representatives of over 100 groups statewide is “legally dedicated to the creation of affordable homes for lower income ...

The Elections are Over, Now it's Time to Collaborate!

May 21, 2018

For much of the past six months Paterson’s focus has been on the races for mayor and council, and rightly so. The elected officials that serve the nearly 150,000 residents of our city have an enormous responsibility, their actions dictating not just success of our community, but the way our City is perceived.

The election is now behind us, and we congratulate all who took part in the ...