State Charges Schenectady Family With $4.7 Million Medicaid Theft
Three relatives operating transport companies in New York face larceny charges for billing the state for rides that never occurred.
By Naomi Tesfaye ·
State prosecutors have charged three family members in Schenectady with stealing $4.7 million from the New York Medicaid program. The defendants, Ismat Farhan and his brother Effat Rizwan, were arraigned in City of Schenectady Court on November 2. Their sister-in-law, Fouzia Rizwan, was also charged. All three are accused of submitting false invoices for medical transport services.
The state alleges the trio operated three separate companies from a used car dealership in Slingerlands. Farhan owned USA Medical Transport Inc. Effat Rizwan ran NYS Med Transport Inc. Fouzia Rizwan held the title to EZ Medical Transportation Inc. Investigators say the companies billed Medicaid for individual rides that were actually unauthorized group trips. They also claimed mileage that was inflated or associated with trips that never took place.
A forensic review of claims from January 2020 to December 2024 quantified the alleged losses. USA Medical Transport submitted false invoices for $2.9 million in group trips and $340,000 for phantom rides. NYS Medical Transport billed $79,000 for fraudulent group services and $4,500 for nonexistent trips. EZ Medical Transportation claimed $1.1 million for group rides and $184,000 for trips that did not occur. The investigation also found that the defendants paid kickbacks to patients who helped facilitate the scheme.
New York State Comptroller Thomas P. DiNapoli announced the charges alongside State Police Superintendent Steven G. James. The investigation began in December 2024 after a complaint was filed. DiNapoli stated that his office investigates fraud to protect access to healthcare. James said the defendants victimized patients who trusted them for safe travel to medical appointments. The three defendants face counts of Grand Larceny in the First and Second Degree.
This case is the latest in a series of Medicaid transport fraud probes. Earlier in 2026, Mohammad Chaudhry, owner of Angel Medical Transportation, was indicted for stealing $1.8 million. In 2025, Muhammad Adnan Saeed, owner of Sublime Transportation, pleaded guilty to fraud and was ordered to pay $760,000 in restitution. Saeed received a jail sentence of three to nine years. Over the last 18 months, Comptroller DiNapoli’s office has secured 61 arrests and recovered more than $50 million in fraudulent claims.
The defendants are scheduled to appear in court again on December 7. The state has noted that the charges are accusations and the defendants are presumed innocent until proven guilty. Patients under Medicaid can use approved transportation for medical appointments, but group rides require prior authorization. Providers may bill for mileage only once per approved group.
