ORANGE COUNTY, NY — Five Medicaid-contracted transportation providers and their seven companies have been indicted for fraud, NYS Attorney General Letitia James announced on June 27.

She said these entities are accused of stealing over $4.4 million from the state’s Medicaid program through fraudulent billing, illegal kickbacks, and money laundering.

The defendants include Muhammad Rizwan Khan, Muhammad Usman Khan, and Farhan Khan from Orange County, along with their related companies: Tristate Express NY, Inc. (Tristate), Meditrans NY, Inc. (Meditrans), Empire Trans NY, Inc. (Empire), and A1 Class Car, Inc. (A1 Class). They allegedly stole more $3.8 million from Medicaid.

Additionally, John Gouzos and Richard Sehl from Rensselaer County, along with their related companies Medi Cab Corp. (Medi Cab), Jay Auto Care, Inc. (Jay Auto Care), and Hojo Detail Center, Inc. (Hojo), were charged with stealing more than $650,000 from Medicaid. Both groups of defendants also face money laundering charges related to their allegedly ill-gotten gains.

The Khans and their companies paid Medicaid recipients to use their cabs, submitted claims for fictitious trips, and added fake tolls to inflate costs. Guozos and Sehl submitted false claims for transporting patients from addresses farther away than their actual residences. Kickback schemes involving Medicaid patients were also part of their operations, James said.