A friend of New York's former mayor faces serious charges
# **Former NYC Mayor’s Associate Charged in Massive Insurance Fraud Scheme**
A long-time associate of former New York City Mayor Eric Adams has been hit with fresh legal troubles, this time in a sprawling scheme to defraud insurance companies and launder millions. **Zhan Petrosyants**, known as *Johnny*, has been indicted on charges of orchestrating a network that submitted fake medical claims—exploiting New York’s "no-fault" insurance system, which was meant to streamline compensation for accident victims.
## **The Scheme: Fake Claims, Stolen Identities, and Millions in Losses**
Federal prosecutors allege that Petrosyants and his co-conspirators filed fraudulent claims for medical services that were never rendered—or worse, entirely unnecessary. The operation allegedly used the names of medical professionals who had **no involvement** in the treatments, bilking auto insurance companies out of vast sums. Investigators say the fraudsters targeted victims of car accidents, exploiting a system designed to protect them.
The indictment paints a damning picture:
- **Wire fraud** – Using electronic communications to carry out the scheme.
- **Health care fraud** – Submitting false claims for non-existent or unnecessary treatments.
- **Money laundering** – Concealing ill-gotten gains through financial maneuvers.
- **Aggravated identity theft** – Stealing identities to further the fraud.
## **A Repeat Offender, But Connections Remain Murky**
This isn’t Petrosyants’ first brush with the law. In 2014, he and his twin brother, Robert Petrosyants, pleaded guilty to similar financial crimes involving fake insurance claims. While Robert has distanced himself from the latest allegations—claiming he doesn’t even "understand what it’s about"—the shadow of past misconduct lingers.
Notably, neither Robert Petrosyants nor former Mayor Adams is implicated in this new case, though the association raises eyebrows. Robert has publicly denied any connection, calling the accusations against his brother "unrelated."
FBI Cracks Down as Petrosyants Held Without Bail
Federal agents moved swiftly, arresting Petrosyants the night before the indictment was unsealed. Now, he remains held without bail as his legal team prepares a defense—a likely indication of the seriousness prosecutors attach to the case.
The Bigger Problem: Fraud in New York’s "No-Fault" System
New York’s no-fault insurance system was created to ensure accident victims receive prompt medical care and compensation. Yet, fraud has plagued the system for years, driving up costs for insurers—and, ultimately, policyholders. Prosecutors argue that schemes like Petrosyants’ exploit the very trust the system relies on, siphoning off resources meant for legitimate claimants.
As this case unfolds, it serves as a stark reminder of how deep corruption can run—and how vigilant authorities must be to root it out.
