Overview
- Manhattan federal prosecutors arrested Zhan “Johnny” Petrosyants and unsealed an indictment, and he appeared before U.S. Magistrate Judge Ona T. Wang with the case assigned to U.S. District Judge Victor Marrero.
- Petrosyants faces four counts that include conspiracy to commit healthcare fraud, conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to commit money laundering.
- Prosecutors say he used sham medical clinics that were secretly controlled by non‑licensed people and billed insurers for care that was unnecessary, never done, or submitted under shell corporations.
- Court filings describe a cash‑out route that used a law‑firm‑affiliated funding company for advances, kickbacks to Petrosyants through pre‑signed checks, and transfers through shell companies into a Manhattan Diamond District jewelry account.
- Context includes Petrosyants’ ties to former Mayor Eric Adams and a pending Geico civil suit that alleges a funding firm linked to Frank Carone aided the scheme, with no criminal charge against Carone.