The owner of an Ulster County medical transportation company was sentenced to three to nine years in state prison for stealing more than $1.1 million from New York's Medicaid program, state officials announced Friday. He was also ordered to pay full restitution.
Muhammad Khan, 31, who owns MAK Limo, pleaded guilty to grand larceny in March in Ulster County Court. State Comptroller Thomas DiNapoli and Ulster County District Attorney Emmanuel Nneji announced the sentence Sept. 25.
Investigators found that Khan billed Medicaid separately for passengers who rode together and submitted claims for rides that never happened. They also found that patients received kickbacks for using MAK Limo and helping facilitate the scheme. The conduct ran from November 2020 through August 2024, according to the officials.
Medicaid covers transportation to eligible medical appointments. Group rides require advance authorization, and a transportation provider may bill mileage only once for an authorized group ride.
Khan was arrested in June 2025 with his father, Mohammad Khan, 69, who owns Atlas Limo. The elder Khan was charged with second-degree grand larceny and accused of stealing $111,548. The charge against him is an allegation; the comptroller's release did not report a conviction or disposition of his case.
MAK Limo and Atlas Limo together received more than $5.8 million in Medicaid payments from New York state, the officials said. That payment total is separate from the amount attributed to the son's fraud.
DiNapoli said the false billing diverted money intended for New Yorkers' health care. His office asks people with information about suspected misuse of public funds to call its fraud hotline at 1-888-672-4555 or submit a complaint through its investigations office.
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