On May 18, 2026, Elnar Zarbailov, a dual citizen of the United States and Azerbaijan, was sentenced to 37 months in prison and one year of supervised release for allegedly conspiring to launder approximately $1.5 million in illicit health care fraud proceeds through U.S. banks on behalf of a Transnational Criminal Organization (“TCO”). According to the U.S. Department of Justice, Zarbailov was also ordered to forfeit $1,457,898 for his role in the scheme. The sentence comes after the Staton Island businessman pleaded guilty, in October 2025, to money laundering conspiracy in the Eastern District of New York. He was reportedly arrested in 2024 at John F. Kennedy International Airport while attempting to flee to Azerbaijan.
According to federal prosecutors, between May 2023 and September 2024, Zarbailov worked as a fixer and money launderer for an unnamed TCO based in Russia and elsewhere, in connection with the largest health care fraud case ever prosecuted by the DOJ. The case involved more than $14.6 billion in alleged fraud that resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professions, in 50 districts that involved 12 State Attorneys General’s Offices. In one of the schemes, the TCO allegedly directed “nominee owners” to open bank accounts in the names of certain durable medical equipment (“DME”) companies that were enrolled in Medicare and other health care benefit programs, using forged sale and corporate registration documents to falsely imply that they were the true beneficial owners of these companies. The TCO allegedly used the accounts to funnel the proceeds of the fraud scheme to shell companies and various banks overseas. According to the DOJ, Zarbailov played a critical role in furthering the scheme by depositing fraud proceeds from five DME companies and transferring those funds to other accounts, including accounts located overseas.
DOJ Press Release | Judgment| Information