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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)<\/p>\n
Will Waldron\/Times Union<\/p>\n
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)<\/p>\n
Will Waldron\/Times Union<\/p>\n
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)<\/p>\n
Will Waldron\/Times Union<\/p>\n
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)<\/p>\n
Will Waldron\/Times Union<\/p>\n
Images from an investigation into a Medicaid transportation company, Carl\u2019s Cab, for fraud.<\/p>\n
U.S. Attorney\u2019s Office<\/p>\n
Images from an investigation into a Medicaid transportation company, Carl\u2019s Cab, for fraud.<\/p>\n
U.S. Attorney\u2019s Office<\/p>\n
ALBANY \u2014 The operators of two area Medicaid transportation companies have been indicted on\u00a0federal charges alleging they defrauded the government of nearly $5 million.<\/p>\n
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FBI agents raided their homes and businesses on Monday in the investigation of Carl\u2019s Cab and\u00a0Latham Taxi Inc.<\/p>\n
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In Albany on Tuesday, First Assistant U.S. Attorney John A.\u00a0Sarcone 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\u2019s appointments and trips to methadone clinics. Carl\u2019s 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.<\/p>\n
Latham Taxi operators Muhammad\u00a0Zishan, 48, of Albany County and Madiha Javed, 34, of\u00a0Rensselaer 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.<\/p>\n
\u201cThese individuals are very creative,\u201d\u00a0Sarcone said of Latham Taxi. \u201cOne of them owns a motel and houses junkies for free. And that\u2019s how they get their customers. That\u2019s how they get, I guess, their people to help them with this conspiracy.\u201d<\/p>\n
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<\/p>\n Add Preferred Source<\/p>\n <\/a><\/p>\n State:<\/strong> Justice Department settles case with ‘pay-for-prescription’ doctor<\/a><\/p>\n Article continues below this ad<\/p>\n More:<\/strong> New Windsor couple admits role in $3.4M Medicaid transportation fraud scheme<\/a><\/p>\n Carl\u2019s 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: \u201cI\u2019m stuffing envelopes!!!! $23,500!!!\u201d according to a release from\u00a0Sarcone\u2019s office.<\/p>\n The announcement followed search warrants executed by federal agents on Monday. At\u00a0Shaikh\u2019s home, federal agents seized over $30,000 in cash and valuables,\u00a0Sarcone said. All five individuals were arraigned Monday in U.S. District Court in Albany.<\/p>\n 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.<\/p>\n Article continues below this ad<\/p>\n Images from an investigation into a Medicaid transportation company, Carl\u2019s Cab, for fraud.<\/p>\n U.S. Attorney\u2019s Office<\/p>\n Images from an investigation into a Medicaid transportation company, Carl\u2019s Cab, for fraud.<\/p>\n U.S. Attorney\u2019s Office<\/p>\n \u201cHealthcare fraud is not a victimless crime,\u201d FBI Special Agent in Charge Craig Tremaroli said at Tuesday\u2019s news conference. \u201cIt 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.\u201d<\/p>\n Health and Human Services Office of Inspector General\u00a0Special 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.<\/p>\n Article continues below this ad<\/p>\n<\/p>\n