Authorities Allege Fake Medical Transportation Billing Scheme
Shah J. Choudhury:
Three members of the same family have been arrested in connection with an alleged Medicaid fraud scheme involving more than $4.7 million in fraudulent claims for medical transportation services in New York State.
According to investigators, the defendants allegedly submitted false billing claims for transportation services that were never provided, improperly billed group trips as individual rides, and inflated mileage to obtain payments from the state’s Medicaid program.
The investigation was conducted by the New York State Comptroller’s Office, led by Thomas P. DiNapoli, in coordination with New York State Police.
The individuals named in the case are Ismat Rizwan, Farhan Rizwan, and Fouzia Rizwan. Investigators allege that they were connected to three medical transportation companies: USA Medical Transport, NYS Med Transport, and EZ Medical Transportation, operating in the Schenectady area.
Authorities allege that the fraudulent billing activities occurred between January 1, 2020, and December 21, 2024.
According to the investigation, USA Medical Transport allegedly submitted more than $2.9 million in improper group-trip claims and approximately $340,000 in claims for nonexistent trips. NYS Med Transport allegedly submitted approximately $79,000 in improper group-trip claims and more than $4,500 for nonexistent trips. EZ Medical Transportation allegedly submitted more than $1.1 million in improper group-trip claims and approximately $184,000 in claims for trips that never occurred.
Investigators also allege that kickbacks were provided to some passengers as part of the scheme.
The three defendants were arraigned in Schenectady City Court. Their next court appearance is scheduled for December 7.
State Comptroller Thomas P. DiNapoli emphasized the importance of protecting Medicaid funds, which support essential healthcare services for millions of New Yorkers.
A Message to Our Community’s Healthcare Business Owners
We urge all members of the Bangladeshi-American community involved in healthcare-related businesses—including medical transportation, home care, healthcare services, and medical billing—to conduct their operations with honesty, transparency, and strict compliance with state and federal laws.
Maintain accurate records, submit legitimate claims, and ensure that every service billed is actually provided. Avoid fraudulent billing, improper payments, and any practices that could violate healthcare regulations.
A single business’s alleged misconduct can damage the reputation of an entire community and undermine public trust in honest healthcare professionals and business owners.
Business success should never come at the expense of integrity. Let honesty guide your business, and let your services benefit the community.
