Three family members have been charged in an alleged scheme to steal $4.7 million from New York’s Medicaid program through transportation companies, according to the state comptroller’s office.
Investigators accused the companies of billing for nonexistent trips, inflating mileage and charging for individual rides when patients traveled together.
Ismat Farhan of Slingerlands, his brother Effat Rizwan of Schenectady and Rizwan’s wife, Fouzia Rizwan of Schenectady, each face first-degree grand larceny charges.
Effat Rizwan also faces a second-degree grand larceny charge.
The case involves USA Medical Transport, NYS Med Transport and EZ Medical Transportation, which operated from the same used-car dealership, according to investigators.
The comptroller’s office said an investigation began after a December 2024 complaint and examined claims from January 2020 through Dec. 21, 2024.
Investigators also alleged the operators paid kickbacks to Medicaid recipients.
The defendants appeared before Schenectady City Court Judge Teneka Frost and are due back in court Dec. 7.
The investigation involved the comptroller’s office, state police and the Schenectady County district attorney’s office.
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