Convicted Insurance Fraud Sentence Stands

When You Do the Crime You Must Do the Time

Post 5224

When a Person is Convicted of a Crime The Hardship Inflicted on His Family is the Result of His Actions Alone

In United States v. Tarek Abou-Khatwa, CRIMINAL No. 18-cr-67 (TSC), United States District Court, District of Columbia (October 24, 2025)  after Defendant Tarek Abou-Khatwa was convicted in November 2019 on 22 counts related to a sophisticated health insurance fraud scheme as head of an insurance-brokerage firm, initially Tarek was sentenced to 70 months in prison.

Home Confinement:

After less than 16 months in prison, Tarek was placed on home confinement under the CARES Act. He was later remanded to prison for violating the conditions of his home confinement order.

Motion for Sentence Reduction:

Tarek filed for sentence reduction under 18 U.S.C. § 3582(c)(2) based on Amendment 821 to the Sentencing Guidelines, which provides a two-point offense-level reduction for certain zero-point offenders.

Legal Analysis - Eligibility for Sentence Reduction

Both parties agreed Abou-Khatwa was eligible for a reduction under Amendment 821, which applies retroactively and would lower his guideline range from 70–87 months to 57–71 months. The court is required to consider the nature and (1) the nature and circumstances of the offense, (2) the history and characteristics of the defendant; (3) the need for the sentence imposed; (4) the kinds of sentences available; (5) the sentencing range established; (6) any Sentencing Commission policy statements; (7) the need to avoid sentencing disparities among defendants; and (8) the need to provide restitution. [18 U.S.C. § 3553(a).] The court noted that the 8 factors counsel strongly against a sentence reduction.

The court found the crimes were serious, motivated by greed, and involved a calculated scheme resulting in large losses to both a major insurer and small business clients. Defendant’s conduct during home confinement — his failure to disclose financial information, persistent complaints about restrictions, and lack of full accountability — counted against any reduction in his sentence.

The court acknowledged Abou-Khatwa’s low risk of recidivism and hardships faced by his family. The court also noted that these factors were already considered at sentencing and did not outweigh the seriousness of the offense.  However, the court concluded that Abou-Khatwa’s crimes were serious and motivated by greed.

Despite making “a handsome living” and “enjoy[ing] a life of great privilege,” Defendant engaged in a years-long, calculated scheme to line his pockets with millions of fraudulently obtained dollars.

CONCLUSION

Although eligible for a sentence reduction, the court found it unwarranted given the facts and law. The court ordered the original sentence to stand.

It is important to note that hardships for defendants and their families are common in criminal cases. The existence of hardships on Tarek and his family they were not particularly compelling in Tarek’s case because the hardships do not outweigh the seriousness of the Defendant's crimes and his inappropriate conduct while on home confinement.

ZALMA OPINION

The USDC for the District of Columbia recognized the seriousness of health insurance fraud that made Abou-Khatwa tons of money hurting individuals and insurers for his handsome living that allowed him to enjoy a life of great privilege. He was caught, tried and convicted and showed contempt for the system by abusing home confinement. He will, therefore, serve his entire sentence in prison and is responsible for the hardships incurred by his family not the prosecutors or the court.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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