DiNapoli and Ulster Co. D.A. Nneji: Owner of Ulster Co. Medical Transportation Company Sentenced to Prison for Stealing $1.1 Million in Medicaid Fraud Scheme

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A factual summary is pending editorial review. The complete official release is reproduced below with issuer attribution and a direct link to the original publication.

Official release

Source material from New York Office of the State Comptroller. The wording below is the issuer’s statement.

The owner of an Ulster County medical transportation service company today was sentenced to serve three to nine years in state prison and ordered to pay full restitution for stealing over $1.1 million by unlawfully billing the Medicaid program by inflating charges and billing for services that were never provided, State Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji announced today.

Muhammad W. Khan, 31, the owner of MAK Limo, pleaded guilty in March to grand larceny in Ulster County Court before Judge Bryan Rounds.

“Muhammad Khan falsified bills and bribed patients to deprive the Medicaid program of over a million dollars, taking money that should have rightly been spent on healthcare for New Yorkers,” DiNapoli said. “I thank Ulster County District Attorney Nneji for his partnership on this case and in fighting public fraud.”

“This huge theft scheme was uncovered, and the perpetrators brought to justice, by the tenacious and collaborative efforts of the investigators and lawyers dedicated to the case,” Nneji said. “I am grateful to Comptroller DiNapoli for his commitment to holding these operations accountable and recovering public funds stolen by the defendant.”

Under the Medicaid program, patients may use transportation services to go to legitimate medical appointments. Providers then bill the Medicaid program. Group rides are not allowed without prior authorization, and approved providers can only bill for mileage once for a group.

As part of the joint investigation, investigators found the defendant systematically billed the Medicaid program individually for rides that were actually group rides and for rides that never occurred. The investigation also found patients were paid kickbacks to use MAK Limo’s services and facilitate the fraud. The crimes occurred from November 2020 to August 2024.

Khan was arrested in June 2025 along with his father, Mohammad A. Khan, 69, the owner of Atlas Limo. Both companies were enrolled in the Medicaid program and received over $5.8 million dollars in Medicaid payments from New York state.

Mohammad A. Khan was charged with grand larceny in the second degree. He was accused of stealing $111,548.

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.ny.gov/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

Release text attributed to New York Office of the State Comptroller. Consult the official publication for any subsequent corrections or updates.