Close Associate of Former Mayor Eric Adams Indicted on Fraud Charges Impacting Insurance Industry
Zhan Petrosyants, a close associate of former New York City Mayor Eric Adams, has been indicted on charges of insurance fraud. According to the U.S. Attorney for the Southern District of New York, Jay Clayton, Petrosyants orchestrated a scheme from 2018 to 2023 that involved submitting fraudulent medical claims to no-fault auto insurance providers. The scheme allegedly involved using the credentials of licensed medical professionals to create fake billing records, which were then submitted for payment. The funds obtained through these fraudulent claims were funneled through shell corporations and eventually transferred to a jewelry business in Manhattan's Diamond District. Petrosyants was taken into custody by the FBI and faces charges including conspiracy to commit healthcare and wire fraud, identity theft, and money laundering. If convicted, he could face up to 60 years in prison. 
