A New Windsor man was sentenced Tuesday to six to 18 years in prison after admitting that a Medicaid transportation billing scheme stole more than $3.4 million from New York.
Rohail Raja, 45, received the prison sentence for first-degree grand larceny, while his wife, Sharma Alam, 45, was sentenced to six months in jail and five years of probation for fourth-degree conspiracy, according to a news release from state Comptroller Thomas DiNapoli and Orange County District Attorney David Hoovler.
The couple admitted when they pleaded guilty that the scheme stole $3,434,730 from the state’s Medicaid program. At sentencing Oct. 27, they paid $400,000 toward restitution and were ordered to repay the remaining $3,034,730.
The case involved Unique Class Limo Inc., owned by Raja, and SNR Limo Inc., owned by Alam. Raja also acted as a high-level manager for SNR Limo. Both companies were authorized Medicaid transportation providers paid by the state Department of Health to take recipients to and from approved medical providers.
Investigators said the companies billed for trips that did not happen and for other trips described inaccurately in their payment claims. The fraudulent billings covered April 15, 2020, through Sept. 30, 2024.
To test the claims, investigators compared transportation bills with records from the medical providers identified in them. A forensic audit by the comptroller’s office found payments for transportation on dates and at times when the providers’ records showed no corresponding medical visits.
Investigators also found claims presenting group transportation as separate trips. Multiple Medicaid recipients had traveled together, but the companies billed the state as though each person had been transported individually, according to authorities.
Raja and Alam pleaded guilty May 14. The companies entered guilty pleas through an attorney that day as well, admitting separate portions of the money stolen through false Medicaid billing.
Unique Class Limo pleaded guilty to first-degree grand larceny and admitted stealing $2,666,634 at Raja’s direction. SNR Limo pleaded guilty to second-degree grand larceny and admitted stealing $768,096 under Raja’s direction as a managerial agent. The release said both companies faced restitution for those amounts and $5,000 fines.
Hoovler described the case as the largest Medicaid fraud scheme prosecuted by the Orange County District Attorney’s Office. He credited the comptroller’s forensic auditors and the Orange County White Collar Crimes Taskforce for helping build the financial case.
The joint investigation involved the district attorney’s office, the comptroller’s office, the Orange County Sheriff’s Office and the task force. The state Office of the Medicaid Inspector General and the Hudson Valley Crime Analysis Center also assisted.
Information developed during the investigation led prosecutors to obtain a search warrant for the couple’s New Windsor residence. Investigators from the district attorney’s and sheriff’s offices carried out the search, accompanied by comptroller’s investigators.
Chief Assistant District Attorney Christopher Borek prosecuted the case. DiNapoli said his office would continue working with law enforcement agencies to investigate fraud against the Medicaid program.
Suspected fraud involving taxpayer money can be reported to the comptroller’s office at 888-672-4555. Written complaints can be sent to the Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.
