FRESNO, Calif. — On October 20, 2022, a federal grand jury charged Sohail Mamdani, 46, of Los Banos with mail fraud and money laundering in connection with a disability insurance fraud scheme, and illegal use of a DEA registration number and fraudulently obtaining possession of a controlled substance, US Attorney Phillip A. Talbert has announced.
The California Employment Development Department (EDD) operates a disability insurance program that provides worker-funded benefits to people who meet certain requirements and have had those requirements verified by their doctor or practitioner. Mamdani was a doctor who ran a clinic called Walk-In Medical Clinic in Los Banos.
According to court documents, between February 2020 and March 2022, Mamdani submitted more than 6,000 initial claims to EDD for disability insurance payments although he never saw or processed the majority of claimants. As part of the fraud, Mamdani would charge the alleged patient a fee for both the initial disability claim and any additional claims. Additionally, in order to avoid federal reporting requirements, Mamdani has structured financial transactions. The investigation reveals potential expected losses for EDD of up to $99 million with potential actual losses of over $53 million.
Mamdani is separately charged with unlawfully using another physician’s DEA registration number for the purpose of unlawfully obtaining controlled substances. Additionally, Mamdani wrote a number of fraudulent prescriptions on behalf of others to obtain controlled substances himself.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation and the California Employment Development Department. Assistant US Attorneys Alexander Dempsey and Michael Tierney are prosecuting the case.
If convicted of mail fraud, Mamdani faces a maximum legal sentence of 20 years in prison and a fine of up to $250,000 or up to twice the gross gain or loss caused by the fraud. He faces a maximum legal sentence of 20 years in prison and a fine of up to double the value of the property involved in the transactions or up to $500,000 if convicted of the money laundering charges. He also faces a maximum legal sentence of four years in prison and a $250,000 fine for each of the drug-related charges. Any sentence, however, would be determined at the discretion of the court after considering all applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables. Accusations are only allegations; the accused is presumed innocent until proven guilty and unless proven beyond a reasonable doubt.