On November 2nd, the New York State Comptroller Thomas P. DiNapoli and the State Police Superintendent announced significant developments regarding alleged fraudulent activities involving three medical transportation companies based in Schenectady, upstate New York. These companies are suspected of defrauding the state’s Medicaid program—commonly referred to as “Medicaid”—by over $4.7 million through various deceptive practices.
The fraudulent activities reportedly included inflating mileage, filing for non-existent trips, and duplicating claims for group transportation services. Authorities have arrested three individuals, including the executives of these companies and their family members, who now face serious charges such as grand larceny.
The three companies implicated in this scandal are USA Medical Transport Inc., NYS Med Transport Inc., and EZ Medical Transportation Inc. The first two companies were run by brothers Ismat Farhan and Effat Rizwan, while the third company is owned by the latter’s wife, Fouzia Rizwan.
According to the Comptroller’s Office, the Medicaid program allows eligible patients to utilize transportation services in order to access medical appointments at qualified institutions. After providing these services, transportation companies are required to submit their costs to Medicaid for reimbursement. However, it is worth noting that group transportation arrangements need prior approval; authorized service providers can only charge for mileage once per group.
Investigators noted that the three companies allegedly submitted false claims to Medicaid by reporting trips that never occurred, misrepresenting multiple individual rides as group transport, and overstating mileage. Additionally, the suspects are also accused of colluding with passengers to pay kickbacks in connection with their fraudulent activities.
Following a forensic analysis of Medicaid claims records from January 2020 to December 2024, investigators discovered that USA Medical Transport Inc. had unlawfully claimed more than $2.9 million in group transportation fees and approximately $340,000 for trips that never happened. NYS Med Transport Inc. faced allegations of falsely claiming over $79,000 in group transportation fees along with $4,500 for non-existent trips. EZ Medical Transportation Inc. was said to have inflated its claims by over $1.1 million for group transport fees and about $184,000 for trips that weren’t actually made.
The investigation began in December 2024 after the Comptroller’s Office received complaints regarding USA Medical Transport Inc. It subsequently collaborated with the State Police Special Investigations Unit and local district attorney’s offices to delve into the related Medicaid claim records. This coordinated effort has revealed the extent of the fraudulent activities and highlights the ongoing commitment to ensure accountability within the public health funding systems.
Such cases serve as stark reminders of the importance of vigilance in monitoring Medicaid claims and the need for strict enforcement against fraudulent practices that ultimately undermine trust in essential health services. The scrutiny on these companies reflects a broader initiative aimed at protecting taxpayer resources and ensuring that those who genuinely need medical transportation can access it without being affected by malpractice.