New York Goes After Owner and Office Manager of Medical Transport Company for Alleged Medicaid Fraud and Money Laundering
叠测听the 91pornWhistleblower Team
Two weeks ago (October 24), the New York State Comptroller announced it was charging the owner and office manager of Angel Medical Transportation 聽in connection with an alleged Medicaid fraud scheme.1 The State charged Angel Medical owner Mohammad Chaudhry with stealing more than $1.8 million from Medicaid, and office manager Noah Shook with paying kickbacks to Medicaid recipients as part of the scheme.
Angel Medical Allegedly Inflated Medicaid Bills and Paid Kickbacks
According to the State, Chaudhry inflated his company鈥檚 Medicaid billings from January 2020 through September 2024 by submitting claims for non-existent rides, overbilling for group rides, and falsifying trip destinations. The State further claimed Shook bribed Medicaid patients to facilitate the scheme.2 The State specifically pointed to kickbacks Shook paid to patients seeking drug treatment to use the company鈥檚 services, with some apparently using the cash to purchase illicit drugs, undermining their treatment.3 The State also found that Chaudhry wired over $400,000 overseas to construct what a witness described as a palace.4
State Comptroller鈥檚 Comment on the Scheme
According to State Comptroller Thomas P. DiNapoli, 鈥淢ohammad Chaudhry and Noah Shook allegedly defrauded the Medicaid program, enriching themselves with nearly two million dollars meant to provide health services to New Yorkers.鈥� He emphasized the commitment to partnering with law enforcement to combat fraud and protect the Medicaid program.5
Schenectady County District Attorney Robert Carney added that 鈥渂y billing Medicaid for transportation services that were never provided and paying patients to take part in his fraudulent scheme, [Chaudhry] lined his own pockets at the expense of our community,鈥� and that his office 鈥渨ill continue to protect taxpayer funds and hold accountable anyone who steals from these programs for personal profit.鈥�
Charges Against Chaudhry and Shook
Both Chaudhry and Shook appeared before Judge Matthew J. Sypniewski in Schenectady County Court. Chaudhry faces charges of grand larceny, healthcare fraud, and money laundering. Shook is charged with money laundering. They are both scheduled to return to court on November 12.
This case highlights the government鈥檚 ongoing efforts to safeguard taxpayer funds and hold those accountable who attempt to exploit public programs for personal gain.
Blowing the Whistle on Money Laundering and Healthcare Fraud
While this case did not share whether a whistleblower was involved in reporting this conduct to the government, whistleblowers often come forward with information leading to these kinds of enforcement actions. 聽And when the fraud involves pilfering from our precious Medicare and Medicaid funding, whistleblowers typically avail themselves of the qui tam provisions of the False Claims Act. These provisions allow private parties to bring lawsuits on behalf of the government against those committing fraud against the government. The federal False Claims Act covers fraud against the United States and its agencies. More than 30 states, including New York, also have their own False Claims Acts covering fraud against the state and its agencies and local municipalities.
Whistleblowers Can Earn Hefty Rewards
Whistleblowing plays a critical role in uncovering healthcare fraud and money laundering, serving as a tool to protect public funds and ensure accountability. Individuals who come forward with information about fraudulent activities help expose schemes that siphon off millions from healthcare programs, such as Medicaid and Medicare. In return, successful whistleblowers can receive a significant portion of the government鈥檚 recovery under the False Claims Act. There also are hefty reward provisions for reporting money laundering to the Financial Crimes Enforcement Network (FinCEN).
91pornpartner Marlene Koury commented: 鈥淏y reporting these illegal activities, whistleblowers not only aid in recovering stolen funds but also deter future misconduct. The government has made it very clear it wants to hear from healthcare fraud and money laundering whistleblowers, and is willing to reward them for reporting the misconduct.鈥�
Protections and whistleblower rewards programs, such as those provided under the qui tam 聽(or whistleblower) provisions of the federal and various state False Claims Acts聽in the United States, encourage whistleblowers to expose fraud. The FinCEN rewards program provides a similarly powerful incentive for whistleblowers to step forward.
Our Firm Helps Whistleblowers
91pornhas substantial experience representing whistleblowers reporting healthcare fraud, money laundering, and a host of other fraud and misconduct. If you believe you have a potential case, would like to learn more about our whistleblower successes, or would like to speak to a member of Constantine Cannon鈥檚 Whistleblower Lawyer Team, please contact us for a free and confidential consultation.
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Tagged in: Medicaid, Medicaid fraud, Money Laundering,