Father, Son Stole $1.2M In Massive Medicaid Transportation Fraud: Authorities

ULSTER COUNTY, NY — A family business ran afoul of the law, according to state regulators and county prosecutors.

NYS Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji announced this week that a father and son, who are owners of companies providing transportation to Medicaid recipients in Ulster County, were charged with stealing over $1.2 million by unlawfully billing Medicaid with inflated charges and for services never provided.

Muhammad W. Khan, 40, of Campbell Hall, was arraigned in Ulster County Court, while his 68-year-old father, Mohammad A. Khan, also of Campbell Hall, was arraigned in Shawangunk Town Court.

"The Khans allegedly fraudulently enriched themselves of over a million dollars from a program that serves people in need of medical services," DiNapoli said. "They allegedly falsified and inflated bills and bribed patients to use their services to bilk the Medicaid system. Thanks to my partnership with Ulster County District Attorney Nneji, they will be held accountable."

Muhammad W. Khan is the owner of MAK Limo. His father, Mohammad A. Khan, is the owner of Atlas Limo. Both companies are enrolled in the Medicaid program and received over $5.8 million dollars in Medicaid payments from New York.

"The collaboration between our office and the New York State Office of the Comptroller is essential to the detection and prosecution of fraud against New York and Ulster County taxpayers," Nneji said. "I thank all the dedicated investigators and government servants from across the state who contributed to building this case resulting in today’s arrest."

Under the Medicaid program, patients may use transportation services to get to legitimate medical appointments. The transportation 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.

However, investigators from DiNapoli's office and the Ulster County DA's Office found that the father and son repeatedly billed the Medicaid program individually for rides that were actually group rides and for rides that allegedly never took place. The investigation also found that patients were paid kickbacks by both Khans to use their services and facilitate the fraud.

Muhammad W. Khan's alleged fraud took place between November 2020 through August 2024, while Mohammad A. Khan's alleged crimes occurred between August 2024 and January 2025.

Muhammad W. Khan was accused of stealing $1,103,358 in total. He was charged with first-degree grand larceny, health care fraud, offering a false instrument for filing, falsification of business records and social services prohibited practices. He was arraigned in Ulster County Court and is due back in court on Sept. 8.

Mohammad A. Khan was charged with second-degree grand larceny. He was accused of stealing $111,548. He was arraigned in Shawangunk Town Court and is due back in court on June 3.

Comptroller DiNapoli and District Attorney Nneji also thank the Department of Health and Human Services, Office of Inspector General for their assistance in this case.