New York State has announced a major statewide crackdown on Medicaid transportation fraud, recovering more than $13 million from 25 companies accused of defrauding the state’s healthcare program.
Massive fraud uncovered across New York
The investigation targeted companies that were reimbursed by Medicaid for transporting patients to medical appointments. Attorney General James revealed that the fraud involved fake billing, inflated mileage, unauthorized drivers, and kickbacks to Medicaid recipients.
“These companies exploited a system designed to help our most vulnerable residents,” said AG James. “We’re holding them accountable and returning millions in stolen funds to taxpayers.”
The crackdown included:
- 16 settlements totaling $13M+
- 7 new lawsuits for ongoing fraudulent practices
- 3 individuals charged or convicted for their roles in the schemes
Key settlements
Among the largest recoveries:
- American Base No. 1 (Bronx): Paid $4.77 million after billing for impossible daily trips and paying kickbacks
- Agape Luxury Corp (Bronx): Paid $2.45 million for inflating mileage and violating TLC regulations
- NBT Transportation (Bronx): Paid $1.5 million for fake toll claims
- Angel Medical Transportation (Schenectady): Paid $1.1 million for non-existent services and unlicensed drivers
Other settlements ranged from $28,000 to $684,000, involving companies from Staten Island to Buffalo.
New lawsuits filed
Seven companies that failed to comply with earlier warnings now face lawsuits. These include:
- Green Cab BNY (Cheektowaga): Allegedly billed for fake mileage
- Dutchess Black Car Service and Westchester County Black Car Service: Sued for fictitious tolls and trips
- Seaman Radio Dispatchers (Manhattan): Accused of billing for deceased patients
- TemboCare Transportation Express (Saratoga): Sued for falsifying trip data
Criminal charges and convictions
- David Moore (Interlaken): Pleaded guilty to grand larceny for submitting over $50K in false Medicaid claims
- James Bessell (Shirley): Charged with fraud and running a $1M+ kickback scheme
- Jose Ortiz (Bronx): Owner of American Base, pleaded guilty to filing false records
Protecting Medicaid integrity
The investigations were led by the Medicaid Fraud Control Unit (MFCU), part of the New York Attorney General’s Office. MFCU’s annual budget exceeds $70 million, with federal and state support enabling it to investigate fraud and abuse in the healthcare system…