The U.S. Department of Justice, along with the Connecticut Attorney General’s Office, issued orders to recover nearly $43 million in fraudulent Medicaid payments, tax evasion, COVID stimulus money and various other forms of fraud perpetrated on the taxpayers of Connecticut and the United States, according to a review of announcements made throughout 2025 by both offices.

When accounting for all settlements, admissions, and convictions throughout 2025, government fraudsters were ordered to pay restitution amounting to $42,911,863, with the IRS recovering $20.4 million, Medicaid fraud accounting for $11.8 million, and COVID-era Paycheck Protection Program (PPP) fraud of $6.6 million making up the majority of the settlements and restitution orders. 

Those who are only charged with fraud were not included in the total, as those court cases are still pending.

The recoveries represent charges going back years in some cases and occasionally involve multi-state lawsuits against major corporations; Connecticut recovered over $728,000 in alleged fraudulent Medicaid payments from Walgreens, part of a $97 million nationwide settlement. Others were more local, like the $1.2 million settlement with Branford-based Genco Labs to resolve allegations that they defrauded Medicaid through drug testing.

Dentists, psychiatrists, and counselors also made up a sizeable portion of Medicaid fraud settlements and convictions, with multiple dental practices accounting for $1.9 million in alleged Medicaid fraud. 

The crackdown on dental offices throughout Connecticut was part of a “larger investigation into fraudulent activity by health care providers who submit kickback-tainted claims to the Connecticut Medical Assistance Program (‘CTMAP’) for services rendered to Connecticut Medicaid patients referred by third-party ‘patient recruiting’ companies,” the press release from the U.S. Attorney’s Office.

An investigation by Inside Investigator found that some healthcare professionals, including dentists, were allowed to keep their licenses even after Medicaid fraud convictions.

Psychiatry and counseling services made up $5.4 million of the Medicaid fraud recovery, including $1.8 million in Medicaid fraud perpetrated by a state employee and a partner while she was working for the Office of Policy and Management. Both Suhail Aponte and Ramon Appellaniz pleaded guilty to fraud in 2025.

Tax fraud, however, accounted for nearly half of the fraud admissions, convictions, or recoveries, according to the review. 

Ten million of that total was tied to Paul Steed of Stamford, who pled guilty to tax offenses stemming from fraud he perpetrated against his employer by stealing $28.4 from Mars, Inc. Similarly, Greenwich investment advisor Jeffrey Arsenault pled guilty to tax evasion stemming from his embezzlement of at least $5.2 millions of his clients’ money, which he used to pay for college tuition and golf club membership dues, according to the U.S. Attorney’s Office.

Lastly, abuses of the COVID-era Paycheck Protection Program, which awarded loans to businesses purportedly affected by the COVID shutdown, continued to roll in, with more than $6 million in fraudulent PPP loans used to pay for houses, jewelry, cars and other luxury items. Just two cases – one individual and one company — accounted for nearly $5 million in alleged PPP fraud.

Yasir Hamed of Woodbridge was sentenced to 32 months in prison for defrauding PPP of $2.3 million by overstating the number of employees and the size of payroll at numerous businesses in which he had an ownership stake and then used the money to pay for college tuition and buy his house in Woodbridge. 

Similarly, Waterbury-based manufacturing and distribution company Coventya Inc., certified that it had fewer than 300 employees when it applied for PPP loans. Under the program, the loans were only available for companies with fewer than 300 employees. 

“Coventya had more than 300 employees and was therefore ineligible for that loan.  Based on its false certification, Coventya received the loan,” the U.S. Attorney’s Office wrote in a press release. “After receiving this PPP loan, Coventya sought and received forgiveness of the total loan amount of $1,081,061.81, including $1,075,000 in principal and $6,061.81 in interest, which the SBA paid to the lender.”

The most recent 2024 annual report by the Health and Human Services Office of the Inspector General found that fiscal year 2024 marked a high point in criminal fraud recoveries with $961 million nationwide. 

A 2022 report by Becker’s Hospital Report found Connecticut had the 11th highest amount of Medicaid fraud recovery and civil judgments with $27.5 million. Texas had the highest with $219.9 million, and next-door neighbor Massachusetts was fifth with $71.3 million.

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