New York Attorney General Letitia James announced the arrest of David Moore, owner of Tompkins County transportation company ASAP 2, for allegedly stealing over $1 million from Medicaid. Moore is accused of using fictitious billing and an illegal kickback scheme to overcharge for transportation services. According to Attorney General James, "Patients across the state depend on medical transportation providers to access the care they need. David Moore exploited his role to steal from New York’s Medicaid program, putting vulnerable New Yorkers at risk and undermining honest businesses that provide essential transportation services."
Medicaid recipients who lack access to transportation can use approved providers for travel to and from covered medical services, with these providers receiving reimbursements from Medicaid. From January 2019 to August 2023, Moore allegedly paid Medicaid recipients to use his service, submitted claims for fictitious trips, and inflated the mileage of actual trips. For example, he allegedly billed trips with multiple passengers as if each passenger was in a separate vehicle.
Moore also reportedly paid kickbacks via Cash App and Venmo to recruit customers illegally. He was arrested on June 21 and charged with Grand Larceny in the First Degree, two counts of Health Care Fraud in the Second Degree, and three counts of Medical Assistance Provider Prohibited Practices. The Grand Larceny charge carries a maximum sentence of up to 25 years in state prison.
The charges are accusations; defendants are presumed innocent until proven guilty in court.
The investigation was conducted by the Attorney General’s Medicaid Fraud Control Unit (MFCU) Rochester Regional staff including Detective Edward Alberto under Detective Supervisor Stacey DiSanto's supervision. Financial analysis was provided by Auditor-Investigators Emily Brissette, Andrew Chadwick, and William Brewer under Regional Chief Auditor Jamie Powers' supervision.
The criminal case is being handled by MFCU Regional Director William Gargan with assistance from MFCU Chief of Criminal Investigations Thomas O’Hanlon. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division of Criminal Justice is led by Chief Deputy Attorney General José Maldonado under First Deputy Attorney General Jennifer Levy's oversight.
MFCU addresses Medicaid provider fraud and protects nursing home residents from abuse and neglect. Individuals can file confidential complaints online or call the MFCU hotline at (800) 771-7755.
MFCU’s total funding for federal fiscal year (FY) 2024 is $68,997,928: $51,748,448 awarded under a grant from the U.S. Department of Health and Human Services and $17,249,480 funded by New York State.