New York Attorney General Letitia James announced the convictions and sentences of five taxi company owners who admitted to defrauding New York’s Medicaid program. The individuals, along with their companies, pleaded guilty to charges involving fake billing, illegal kickbacks, money laundering, and other fraudulent activities. The total amount stolen exceeded $4.4 million.
Muhammad Rizwan Khan, Muhammad Usman Khan, and Farhan Khan from Orange County were found guilty of stealing over $3.8 million from Medicaid. They will face prison terms ranging from six months to seven years and are required to pay $2 million in restitution.
In a separate case in Rensselaer County Court, John Gouzos and Richard Sehl admitted guilt for stealing more than $650,000 from Medicaid. Their sentences include jail time and probation.
Attorney General James condemned the actions stating: “Exploiting vulnerable New York patients to steal millions of taxpayer dollars is illegal and reprehensible.” She emphasized that such fraud undermines honest businesses and risks essential patient services.
The schemes involved submitting false claims for non-existent trips or inflated costs through fabricated tolls and mileage. Illegal kickbacks were paid to Medicaid patients who provided identification numbers necessary for filing these false claims.
Both sets of defendants also engaged in money laundering using shell companies to process fraudulent payments and distribute kickbacks.
As a result of their convictions, all defendants are barred from participating as providers in government-funded health programs like Medicaid and Medicare.
The investigation was supported by various law enforcement agencies including the FBI and the New York State Police. It was conducted by several detectives under the supervision of Detective Supervisors John Benshoff and Jeffrey Pitts among others.
The legal proceedings were managed by Special Assistant Attorneys General Samantha McCullagh and Patrick Scully with support from other officials within the Attorney General's office.
For those suspecting Medicaid provider fraud or nursing home abuse, reports can be filed confidentially online or via a hotline provided by MFCU.
Funding for New York MFCU for FY 2025 totals over $70 million with significant contributions from federal grants awarded by the U.S. Department of Health and Human Services.