New York State Comptroller Tom iNapoli and Ulster County District Attorney Emmanuel Nneji announced the arrest of a father and son accused of defrauding the state’s Medicaid program of more than $1.2 million.
The charges stem from a coordinated investigation into two transportation companies—MAK Limo and Atlas Limo—owned respectively by Muhammad W. Khan, 40, and his father, Mohammad A. Khan, 68. Both men are residents of Campbell Hall, Orange County.
Alleged scheme involved inflated charges and false billing
Investigators allege that from 2020 to early 2025, the Khans submitted falsified Medicaid transportation claims. These included:
- Billing for group rides as if they were individual rides
- Charging for rides that allegedly never occurred
- Bribing patients to use their services to facilitate the fraud
Medicaid rules require prior approval for group rides, and providers may bill mileage only once per shared trip. DiNapoli’s office says both men knowingly ignored these rules to maximize payouts.
“The Khans allegedly fraudulently enriched themselves of over a million dollars from a program that serves people in need,” said Comptroller DiNapoli.
Prosecutors accuse Muhammad Khan of defrauding the program of $1,103,358 between November 2020 and August 2024. His father, Mohammad A. Khan, allegedly stole $111,548 between August 2024 and January 2025.
Charges and upcoming court dates
Authorities arraigned Khan in Ulster County Court, where he faces multiple charges, including:
- Grand larceny in the first degree
- Health care fraud
- Offering a false instrument for filing
- Falsification of business records
- Prohibited Medicaid practices
He is scheduled to appear in court again on September 8.
His father, Mohammad Khan, was arraigned in Shawangunk Town Court and charged with grand larceny in the second degree. He is due back in court on June 3.
District Attorney Nneji emphasized the importance of collaboration in prosecuting complex fraud cases.
“This case shows how essential interagency coordination is in protecting taxpayers and holding bad actors accountable,” he said.
Medicaid oversight and fraud prevention efforts
The New York State Medicaid program allows qualified recipients to use transportation services for medical appointments, with the state reimbursing certified providers. Abuse of this system diverts funds away from legitimate care and drives up costs for taxpayers.
Since 2007, Comptroller DiNapoli has prioritized rooting out public corruption. Residents are encouraged to report suspected fraud via the Fraud Hotline (1-888-672-4555) or online at osc.ny.gov/investigations.
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