A Schenectady County transportation company owner and his office manager have been indicted in a sweeping $1.8 million Medicaid fraud case, state officials announced Friday.
According to New York State Comptroller Thomas P. DiNapoli, Mohammad Chaudhry, 43, the owner of Angel Medical Transportation, and office manager Noah Shook, 45, are accused of inflating Medicaid transportation bills over nearly four years. The scheme allegedly included billing for fake rides, lying about destinations, and paying kickbacks to patients.
“Chaudhry and Shook allegedly defrauded the Medicaid program, enriching themselves with nearly two million dollars meant to provide health services to New Yorkers,” said DiNapoli.
The charges stem from an investigation that found the company submitted claims for transportation services that never happened and fraudulently overbilled group rides as individual trips — a direct violation of Medicaid rules.
Investigators also uncovered that patients, including those in drug treatment programs, were paid to use the service and participate in the scam. Some reportedly used the kickbacks to buy illegal drugs, undermining the very care they were supposed to be receiving.
Chaudhry is also accused of wiring over $400,000 overseas to fund the construction of what a witness called a “palace.”
Schenectady County District Attorney Robert Carney said the scheme exploited vulnerable individuals and betrayed the Medicaid program’s mission. “He lined his own pockets at the expense of our community,” Carney said.
Both Chaudhry and Shook appeared in Schenectady County Court before Judge Matthew J. Sypniewski. Chaudhry faces multiple charges including grand larceny, health care fraud, and money laundering. Shook is charged with money laundering. Both are scheduled to return to court on November 12.
Officials emphasized that all defendants are presumed innocent until proven guilty.
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