Associate of Former NYC Mayor Indicted on Fraud Charges

A close associate of former New York City Mayor Eric Adams, Zhan Petrosyants, has been indicted on multiple charges related to insurance fraud, according to federal prosecutors.

Details of the Alleged Scheme

U.S. Attorney for the Southern District of New York, Jay Clayton, stated that Petrosyants is accused of fraudulently obtaining millions of dollars through no-fault auto insurance claims between 2018 and 2023.

Millions in False Claims

The indictment alleges that Petrosyants’ scheme involved submitting tens of millions of dollars in fabricated medical claims. These funds were then allegedly laundered to conceal their origin.

Arrest and Charges

Federal agents took 44-year-old Petrosyants into custody on Tuesday night. He is scheduled to appear before a judge to face the charges.

Specific Charges Filed

Petrosyants faces charges of conspiracy to commit health care and wire fraud, identity theft, and money laundering. These charges reflect the severity and complexity of the alleged criminal activity.

Statement from the U.S. Attorney

“Petrosyants orchestrated a complex scheme to cheat insurance providers out of millions of dollars,” said Clayton. He further emphasized that “No-fault insurance fraud schemes raise costs for everyone and reduce benefits to consumers, an unnecessary burden we all unfortunately share.”

Legal Representation

Attorneys representing Zhan Petrosyants have not yet issued a public response to requests for comment regarding the indictment.

Connection to Former Mayor Adams

Petrosyants was identified as one of the closest associates of former Mayor Eric Adams during his time in office.