Former physician from Newark gets 30 months in bank fraud case

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U.S. District Court Judge Richard G. Andrews sentenced Zahid Aslam, 46, of Newark, 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. He was best known for developing a medical center at a former Walmart store in Elkton, MD.

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. (Click on the headline below for story)

Maryland physician pleads guilty and agrees to pay millions to resolve bank loan, health fraud cases

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 for Delaware David 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.”

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.

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