New York (WRGB) — New York Attorney General Letitia James announced a significant crackdown on 25 transportation companies across the state for defrauding Medicaid. The Office of the Attorney General (OAG) investigations revealed schemes to steal millions of dollars from Medicaid, resulting in 16 companies agreeing to pay back over $13 million.
Attorney General James said,
When companies make up fake bills and exploit patients to overcharge Medicaid, they take resources away from a program that allows the most vulnerable New Yorkers to get health care.
The investigations uncovered fraudulent practices such as billing for fake trips, inflating mileage, and using unlicensed drivers. Some companies also engaged in kickback schemes, exploiting Medicaid recipients by paying them to request services.
Among the settlements, American Base No. 1, a Bronx-based company, will pay nearly $4.8 million for inflated mileage claims and other fraudulent activities. Agape Luxury Corp and NBT Transportation, both Bronx-based, will pay $2.45 million and $1.5 million, respectively, for similar allegations.
Additionally, lawsuits have been filed against seven companies that continued fraudulent practices despite cease and desist orders. These include Green Cab BNY and Dutchess Black Car Service, facing lawsuits seeking millions in damages.
Attorney General James emphasized the importance of these actions, stating,
We’re holding scammers accountable and returning millions of dollars in stolen funds to Medicaid, a taxpayer-funded program.
The crackdown also led to criminal charges against individuals involved in the fraud schemes. David Moore, owner of ASAP 2, pleaded guilty to Grand Larceny, while James Bessell and Jose Ortiz face charges related to Medicaid fraud.
These efforts are part of the OAG’s ongoing commitment to combat Medicaid fraud and protect vulnerable New Yorkers. The investigations were conducted by the Medicaid Fraud Control Unit (MFCU), with support from federal and state agencies.