Former Delaware Physician Sentenced To 30 Months Imprisonment For Making A False Statement To A Financial Institution
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that on Friday, May 31, 2019, District Judge Richard G. Andrews sentenced Zahid Aslam, age 46, of Newark, Delaware, to a 30-month prison sentence for making a false statement to a financial institution. The Court also ordered Aslam to serve three years of supervised release following his sentence.
Aslam, a former physician with practices in Delaware, Maryland, and Pennsylvania, previously pleaded guilty in November 2018 to using third-party nominee borrowers to obtain loans on his behalf at two different financial institutions. These loans, which Aslam could not have otherwise qualified for on his own, fueled the growth of his medical practices. At the time of his guilty plea, Aslam and two of his health care entities entered into a separate $3,070,000 civil settlement to resolve health care fraud allegations. One of those entities also pleaded guilty to criminal health care fraud and paid a $100,000 fine.
As a result of his criminal conviction and the civil settlement, Aslam surrendered his medical licenses and has been barred from billing federal healthcare programs. As a non-citizen, Aslam is also subject to removal by immigration authorities.
U.S. Attorney Weiss stated the following, “The Court’s sentence is the culmination of the multi-year investigation and prosecution of former physician Zahid Aslam and his health care entities relating to bank fraud and health care fraud. My Office and our law enforcement partners previously announced a $3,070,000 settlement, as well as a separate corporate guilty plea, to resolve the health care fraud portion of the investigation in November 2018. Today’s sentencing concludes the bank fraud aspect of the investigation. Lying to banks regarding the actual person who is receiving loan proceeds is a serious offense. Here, Aslam acknowledged that he caused over $1,000,000 in losses relating to his fraudulent conduct. The 30-month sentence appropriately punishes Aslam for his offense and sends a strong message that committing bank fraud will result in a lengthy term of imprisonment. My Office remains steadfast in prosecuting criminal conduct that impacts the integrity of our financial system.”
"The FBI in Wilmington will vigorously investigate all forms of financial crimes and this sentence indicates those intent on corrupting our economy will be identified and brought to justice," said Jennifer L. Moore, Acting Special Agent in Charge of the FBI Baltimore Office. "Our job is to protect victims who don't see these crimes occurring, but who always end up paying the price."
“We are diligent in unraveling the fraudulent actions of those, such as Zahid Aslam, who scheme to defraud financial institutions,” said IRS-Criminal Investigation Special Agent in Charge Guy Ficco. “This sentence is a reminder that we will vigorously investigate and bring to justice those who engage in these illegal activities.”
“The exclusion of Dr. Aslam from all Federal healthcare programs demonstrates our commitment to hold bad actors accountable," said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health & Human Services Office of Inspector General. "We will continue to investigate and disrupt attempts to undermine healthcare programs.”
This case was prosecuted by Assistant U.S. Attorney Robert F. Kravetz and was investigated by FBI Baltimore Division’s Wilmington Office, the Department of Health and Human Services Office of Inspector General, and the Internal Revenue Service –Criminal Investigations Division. Those agencies also received investigative assistance from the State of Delaware Medicaid Fraud Control Unit, the State of Maryland Medicaid Fraud Control Unit, Federal Housing Finance Agency – Office of Inspector General, and the Special Inspector General of the Troubled Asset Relief Program.