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Last Updated: January 20, 2010

Old Westbury Couple
Charged With Medicaid Fraud

Nassau County District Attorney Kathleen Rice has announced that an Old Westbury couple has been charged with stealing more than $33,000 in undeserved Medicaid benefits by under reporting their income and failing to disclose that they owned their own real estate development company and two houses worth more than $3 million.
Daniel and Dalia Mairzadeh, both 45, were arrested by DA investigators and charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, and Offering a False Instrument for Filing in the First Degree. Both defendants were arraigned in First District Court, Hempstead. They each face up to seven years in prison if convicted.
Rice said that between April 1, 2004 and April 30, 2009, Daniel and Dalia Mairzadeh intentionally under reported their personal income to the Nassau County Department of Social Services (DSS) so that they would qualify for taxpayer-funded Medicaid benefits. During this time period, the Mairzadehs reported that Daniel was making between $405 and $633 per week as a contractor for Fundstone Developers, LLC, and submitted phony receipts for the home they claimed to rent.
In reality, Daniel Mairzadeh owned Fundstone Developers, LLC, and his wife worked as a real estate agent. Her income was never reported. In addition, the couple owned the home they claimed to be renting and purchased a second home in 2005 for $990,000. In 2006, the couple sold the home they were living in for $1.25 million and bought a new home for $2.159 million. None of this was ever reported to DSS.
During that time period, the Mairzadehs stole $33,553 in Medicaid benefits for themselves and their three children, according to DSS.
“These two defendants stole from each and every taxpayer in this county and abused a system designed to help those who are truly in need,” Rice said. “My office will hold these thieves accountable and ensure that every penny they stole is returned to the people of Nassau County. I want to thank the DSS Special Investigations Unit for their investigation and referral on this case.”
“This type of crime is an affront against every Nassau County resident, and every American,” said County Executive Ed Mangano. “I want to thank District Attorney Rice and DSS Commissioner John Imhof for their vigilance on this issue.”
Assistant District Attorney Andrew Weiss of the Government & Consumer Frauds Bureau is handling the cases for the District Attorney's Office. The defendants are represented by Sean Sabeti, Esq.