John A. Sarcone III, first assistant U.S. attorney for the Northern District of New York, leads a news conference about federal charges brought in a Capital Region Medicaid fraud scheme on Tuesday at the FBI Field Office in Albany. Federal officials said two local taxi companies took part in a Medicaid scam that cost taxpayers nearly $5 million. (Will Waldron/Times Union)
Will Waldron/Times Union
John A. Sarcone III, first assistant U.S. attorney for the Northern District of New York, left, and Craig L. Tremaroli, special agent in charge of the FBI Albany field office, right, hold a news conference about federal charges brought in a Capital Region Medicaid fraud scheme on Tuesday, June 23, 2026, at the FBI Field Office in Albany, N.Y. Federal officials said two local taxi companies took part in a Medicaid scam that cost taxpayers nearly $5 million. (Will Waldron/Times Union)
Will Waldron/Times Union
Craig L. Tremaroli, special agent in charge of the FBI Albany field office, chairs a joint news conference about federal charges brought in a Capital Region Medicaid fraud scheme on Tuesday, June 23, 2026, at the FBI Field Office in Albany, N.Y. Federal officials said two local taxi companies took part in a Medicaid scam that cost taxpayers nearly $5 million. (Will Waldron/Times Union)
Will Waldron/Times Union
John A. Sarcone III, first assistant U.S. attorney for the Northern District of New York, leads a news conference about federal charges brought in a Capital Region Medicaid fraud scheme on Tuesday, June 23, 2026, at the FBI Field Office in Albany, N.Y. Federal officials said two local taxi companies took part in a Medicaid scam that cost taxpayers nearly $5 million. (Will Waldron/Times Union)
Will Waldron/Times Union
Images from an investigation into a Medicaid transportation company, Carl’s Cab, for fraud.
U.S. Attorney’s Office
Images from an investigation into a Medicaid transportation company, Carl’s Cab, for fraud.
U.S. Attorney’s Office
ALBANY — The operators of two area Medicaid transportation companies have been indicted on federal charges alleging they defrauded the government of nearly $5 million.
FBI agents raided their homes and businesses on Monday in the investigation of Carl’s Cab and Latham Taxi Inc.
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In Albany on Tuesday, First Assistant U.S. Attorney John A. Sarcone III said at a news conference that the local Medicaid taxi operators bilked the government of millions of dollars through false billing or inflating the cost of trips to medical appointments. They also allegedly bribed riders with money, free rent or drugs to use their cabs for doctor’s appointments and trips to methadone clinics. Carl’s Cab collected nearly $4.3 million from January 2020 to March 2025, Sarcone said. Latham Taxi collected a little over $666,000 around that same time.
Latham Taxi operators Muhammad Zishan, 48, of Albany County and Madiha Javed, 34, of Rensselaer County, were charged Monday with conspiracy to commit healthcare fraud, wire fraud and conspiracy to pay healthcare kickbacks, Sarcone said. Ghazali Shaikh, 20, of Warren County, was also charged with conspiracy to commit healthcare fraud and wire fraud.
“These individuals are very creative,” Sarcone said of Latham Taxi. “One of them owns a motel and houses junkies for free. And that’s how they get their customers. That’s how they get, I guess, their people to help them with this conspiracy.”
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Carl’s Cab operators Joseph Carl, 55, and Randolph Ekstrom, 48, both of Saratoga County, were also charged Monday with conspiracy to commit healthcare fraud and wire fraud and conspiracy to pay healthcare kickbacks. Their alleged bribes were so brazen that, on Aug. 17, 2023, Carl sent someone an image of money and envelopes stacked on a dining room table with the message: “I’m stuffing envelopes!!!! $23,500!!!” according to a release from Sarcone’s office.
The announcement followed search warrants executed by federal agents on Monday. At Shaikh’s home, federal agents seized over $30,000 in cash and valuables, Sarcone said. All five individuals were arraigned Monday in U.S. District Court in Albany.
Zishan was detained pending trial; Javed was detained pending a detention hearing scheduled for Wednesday. The other three were released while their cases are pending.
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Images from an investigation into a Medicaid transportation company, Carl’s Cab, for fraud.
U.S. Attorney’s Office
Images from an investigation into a Medicaid transportation company, Carl’s Cab, for fraud.
U.S. Attorney’s Office
“Healthcare fraud is not a victimless crime,” FBI Special Agent in Charge Craig Tremaroli said at Tuesday’s news conference. “It targets our most vulnerable population demographic. It costs our country hundreds of billions of dollars each year, which drives up the cost of healthcare for every American.”
Health and Human Services Office of Inspector General Special Agent in Charge Naomi Gruchacz said the investigations stemmed from tips to law enforcement, and she encouraged anyone who had observed similar alleged fraud to contact law enforcement.
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The charges are part of a nationwide crackdown by the U.S. Department of Justice, dubbed their “2026 National Health Care Fraud Takedown,” which has resulted in 455 people being charged with crimes, including 90 doctors and other licensed medical professionals, and over $6.5 billion in alleged false claims.
Sarcone also announced a $450,000 civil settlement with Dr. Douglas C. Cline, who previously operated a practice called “Chronic Pain Management” in Queensbury, and Laurie McKenna, a nurse practitioner who had worked for him at that facility, for allegedly taking cash to provide opioids and other narcotics. AptiHealth Inc., a Clifton Park-based behavioral telehealth provider, also settled a civil case for $300,000 over allegations it improperly billed Medicaid and Medicare for things like “no-show” appointments and messaging with patients, and used gift cards to bribe clients to use its services.