LI couple face welfare fraud charges

A Valley Stream couple whose son was charged Tuesday with voter fraud were arrested Wednesday on grand larceny and welfare fraud charges because, prosecutors said, they had reported income drastically lower than they had earned so they could receive Medicaid benefits over several years.

Ashraf Insanally, 50, and Farina Insanally, 46, were arrested Wednesday and arraigned in First District Court in Hempstead on charges of third-degree grand larceny and third-degree welfare fraud, both felonies. They pleaded not guilty.

Nassau District Attorney Kathleen Rice said the couple had falsified their income on documents they submitted to the county Department of Social Services. She said they own what she described as a prosperous home-improvement business.

"Despite a thriving business and a six-figure income, this couple thought nothing of reaching into the pockets of honest taxpayers," Rice said. "Medicaid benefits are intended to provide essential medical care to people who are truly in need, not white-collar thieves like the Insanallys."

Rice said the couple filed paperwork on Nov. 12, 2002 and Jan. 18, 2005, stating their weekly income was $300 and, as a result, received $37,827.99 in Medicaid benefits between March 1, 2003, and Jan. 31, 2007.

During that time, she said, the couple made deposits totaling $388,009.98 into two personal bank accounts. She estimated the couple's personal income was $124,000 in 2006.

The Insanallys own Allys Home Improvement, Inc. in Valley Stream, Rice said.

"I think after a full and fair investigation, after all the facts and circumstances come out, that both defendants will be vindicated," said Joseph Girardi of Valley Stream, who represents Ashraf Insanally. Farina Insanally's attorney, Dennis Lemke of Mineola, could not be reached for comment. The Insanallys were released without bail and are due back in court March 8. They face up to seven years in prison, Rice said.

Their legal troubles came to light a day after their son, Imtiaz Insanally, 27, a part-time clerk at the Nassau County Board of Elections, was charged with writing false addresses for petition signers in an independent nominating petition for Tax Revolt Party candidate Christian Browne.

Imtiaz Insanally was arraigned and released without bail. He is due back in court Feb. 17.