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The owner of an Ulster County medical transportation company has pleaded guilty to stealing over $1.1 million from the Medicaid program by submitting inflated bills and charging for rides that never occurred. Muhammad W. Khan, 40, owner of MAK Limo, entered his plea on Wednesday (March 25) in Ulster County Court, according to a joint announcement from State Comptroller Thomas DiNapoli and Ulster County District Attorney Emmanuel Nneji. Khan now faces up to 15 years in prison and must pay $1.1 million in restitution when he is sentenced on Wednesday, September 9.
According to the Times Union, investigators found that between November 2020 and August 2024, Khan billed Medicaid for individual trips that were actually group rides and for rides that never happened. The investigation also uncovered that patients received kickbacks to use MAK Limo’s services, helping to facilitate the fraud.
Medicaid allows patients to use approved transportation providers for medical appointments, but group rides require prior authorization and providers can only bill mileage once for each group trip. Mid Hudson News reported that Khan’s father, Mohammad A. Khan, 68, owner of Atlas Limo, was also arrested and charged with second-degree grand larceny for allegedly stealing over $111,500. His case is still pending.
Authorities said both companies together received more than $5.8 million in Medicaid payments from New York State. The investigation, led by the Ulster County District Attorney’s Office and the State Comptroller’s Office, also received help from the federal Department of Health and Human Services’ inspector general.
State Comptroller DiNapoli said, "Muhammad Khan falsified bills and bribed patients so he could bilk the Medicaid program of over a million dollars, but now he is being held accountable for his crimes." District Attorney Nneji added, "It is gratifying to put an end to any fraud against the public, and I look forward to continuing our joint effort for the people of Ulster County" (Daily Freeman).
Khan’s sentencing is scheduled for 1 p.m. on Wednesday, September 9, in Ulster County Court. The Medicaid fraud investigation remains ongoing.