New York Man Convicted in $46.7M Insurance Fraud Seeks Restitution Reduction

Appeals court judges appear skeptical of fraudster's argument to lower restitution amount

Apr. 13, 2026 at 6:08pm

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An extreme close-up photograph of a stack of medical bills and insurance claim forms, the harsh lighting and dark background creating a stark, gritty aesthetic that conceptually represents the investigative details of a large-scale fraud case.The complex restitution battle in a major insurance fraud case exposes the challenges prosecutors face in securing full compensation for victims.NYC Today

A New York man convicted for his role in one of the largest no-fault insurance scams in the state's history is appealing the $46.7 million restitution order, arguing the amount should be reduced to account for medically necessary services the insurance companies would have had to pay for regardless of the fraud. However, the Second Circuit judges appeared skeptical of his arguments during Monday's hearing.

Why it matters

This case highlights the challenges prosecutors face in securing full restitution for victims in large-scale insurance fraud schemes, where defendants may try to argue that some of the fraudulent claims involved legitimate medical services. The outcome could set an important precedent for how restitution is calculated in similar cases.

The details

Roman Israilov was convicted for his role in the no-fault insurance scam, which involved falsely incorporating medical clinics to submit fraudulent claims to insurance companies. During Monday's appeal hearing, Israilov's lawyers argued the $46.7 million restitution order should be reduced to account for any medically necessary services the insurance companies would have had to pay for regardless of the fraud.

  • Israilov was convicted for his role in the insurance fraud scheme.
  • On Monday, Israilov appealed the $46.7 million restitution order to the Second Circuit court.

The players

Roman Israilov

A New York man convicted for his role in one of the largest no-fault insurance scams in the state's history.

Second Circuit

The federal appeals court that is hearing Israilov's restitution appeal.

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What’s next

The Second Circuit judges will issue a ruling on Israilov's restitution appeal in the coming weeks or months.

The takeaway

This case highlights the complexities prosecutors face in securing full restitution for victims in large-scale insurance fraud schemes, as defendants may try to argue that some of the fraudulent claims involved legitimate medical services. The Second Circuit's decision could set an important precedent for how restitution is calculated in similar cases.