Medicaid Fraud Case Ends With Plea and $1.8 Million Theft Charge

More than $1.8 million in state Medicaid funds were siphoned from the program by a local transportation firm, according to officials who announced a guilty plea on Nov. 9. Mohammad Chaudhry, the 43-year-old owner of Angel Medical Transportation in Schenectady County, admitted to grand larceny in the first degree. The admission concludes a probe into claims submitted between January 2020 and September 2024.

State Comptroller Thomas P. DiNapoli, Schenectady County District Attorney Robert Carney, and Sheriff Dominic Dagostino released the details of the case. Chaudhry faces a restitution order for the full amount stolen. He also expects a prison sentence ranging from three to nine years. The defendant was indicted in October 2025 after investigators reviewed years of billing records.

The scheme relied on manipulating ride data to increase payouts. Chaudhry billed the state for individual trips that were actually group rides. Medicaid rules require prior authorization for group transportation and limit mileage billing to a single charge for the group. By splitting these trips into individual claims, the company collected more money than regulations allowed. Investigators also found that the firm billed for trips that never took place.

Bill padding was another method used to inflate costs. The company falsified destination records to make short trips appear longer. This increased the mileage reimbursement paid by the state. The fraud targeted a vulnerable population, as many patients using the service were enrolled in drug treatment programs.

Chaudhry allegedly paid cash kickbacks to patients to ensure they used his company. These payments facilitated the scheme by creating a steady stream of billable riders. In some instances, recipients spent the cash on illicit drugs. This practice undermined the therapeutic goals of their treatment while generating revenue for the transportation firm.

DiNapoli stated that the fraud took money intended for health services away from taxpayers. He called the loss nearly $2 million and emphasized the partnership between his office and local law enforcement. The Comptroller noted that the state is working to recover waste, fraud, and abuse from the Medicaid system.

District Attorney Carney described the case as a significant example of Medicaid fraud in the region. It is the second completed case of this type in Schenectady County. A larger case was initiated recently with a new arrest. Carney said the state should handle these crimes with imprisonment and maximum restitution. He aimed to make the potential punishment clear to others who might consider similar schemes.

The case was prosecuted by Assistant District Attorneys Leah Hoover and William Lemon. Chaudhry appeared before Judge Matthew J. Sypniewski in Schenectady County Court for the plea. His sentencing is set for Jan. 25. A co-defendant, Noah Shook, who served as the office manager, is accused of managing the kickback payments.

Shook is due back in court on Nov. 19 to address his charges. The State Comptroller’s office reports that Medicaid fraud investigations over the last 18 months have led to 62 arrests. Those probes have resulted in the recovery of more than $50 million. The office maintains a toll-free hotline and an online portal for New Yorkers to report suspected fraud involving taxpayer money.

Chaudhry’s company was enrolled in the Medicaid program as an approved provider. The enrollment allowed the firm to bill directly for transportation services. The fraud lasted for nearly five years before the guilty plea. The restitution order will require Chaudhry to return the stolen funds to the state program.