Medical Transportation Company Owner Admits To $1.1M Medicaid Fraud

ULSTER COUNTY, NY — A man who left taxpayers on the hook for more than a million dollars in bogus Medicaid payments could spend more than a decade behind bars,

State Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji announced last week that the owner of an Ulster County medical transportation company pleaded guilty to first-degree grand larceny.

The plea is related to the theft of $1.1 million by unlawfully billing the Medicaid program by inflating charges and billing for services that were never provided.

Authorities say that 40-year-old Muhammad W. Khan, of Campbell Hall, the owner of MAK Limo, faces up to 15 years in prison and will pay $1.1 million in restitution. His sentencing is scheduled for Sept. 9.

"Muhammed Khan falsified bills and bribed patients so he could bilk the Medicaid program of over a million dollars, but now he is being held accountable for his crimes," DiNapoli said. "I thank Ulster County District Attorney Nneji for his partnership in fighting public fraud and protecting essential funds meant to safeguard the health of millions of New Yorkers."

SEE ALSO: Father, Son Stole $1.2M In Massive Medicaid Transportation Fraud: Authorities

"Such rampant fraud as this crosses multiple counties in this state and normally flies under the radar," Nneji said. "I am incredibly grateful to State Comptroller DiNapoli for coming in here and working collaboratively with us, permitting me to designate one of his attorneys as assistant district attorney, and relying on the resources of his office in this case. It is gratifying to put an end to any fraud against the public, and I look forward to continuing our joint effort for the people of Ulster County."

Under the Medicaid program, patients may use transportation services to get to legitimate medical appointments. The transportation providers then bill the Medicaid program. Group rides are not allowed without prior authorization, and approved providers can only bill for mileage once for a group.

However, investigators from DiNapoli's office and the Ulster County DA's Office found that Khan repeatedly billed the Medicaid program individually for rides that were actually group rides and for rides that allegedly never took place. The investigation also found that patients were paid kickbacks by both Khans to use their services and facilitate the fraud.

Khan's fraud took place between November 2020 through August 2024,

Khan's father, Mohammad A. Khan, is the owner of Atlas Limo. Both of their companies are enrolled in the Medicaid program and received over $5.8 million dollars in Medicaid payments from New York.

The father and son were arrested in June 2025.

Mohammad A. Khan was charged with second-degree grand larceny for allegedly stealing $111,548.