Investigation Targets Medicaid Transportation Fraud in the North Country

Investigation Targets Medicaid Transportation Fraud in the North Country

Investigation Targets Medicaid Transportation Fraud in the North Country

U.S. Attorney’s Office
Northern District of New York
23 May 2018

FOR IMMEDIATE RELEASE

ALBANY, NEW YORK – Thirteen people were arrested this week as part of a federal and state investigation into Medicaid fraud allegedly committed by the owners and operators of medical transportation companies based in Essex County.

The announcement was made by:

United States Attorney Grant C. Jaquith;
New York State Police Superintendent George P. Beach II;
Essex County District Attorney Kristy Sprague;
New York State Inspector General Catherine Leahy Scott; and
Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Criminal complaints were filed against the following people:

Name	Age	Residence	Charges
Khalid M. Chadder	48	Ticonderoga, New York	Federal charges -- Conspiracy to commit health care fraud; offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries State charges -- Grand larceny in the third degree; falsifying business records in the first degree; offering a false instrument for filing in the first degree
Qaiser Gondal	46	Ticonderoga, New York	Federal charges -- Offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Anthony Armstrong	29	Port Henry, New York	Federal charges – Offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries State charges – Grand larceny in the third degree; falsifying business records in the first degree; offering a false instrument for filing in the first degree
Waqas Nauman	36	Queensbury, New York	Federal charges -- Conspiracy to commit health care fraud State charges -- Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Khurram Gondal, aka Khurram Choudhary	37	Ticonderoga, New York	Federal charges -- Conspiracy to commit health care fraud State charges – Grand larceny in the first, second and third degrees; falsifying business records in the first degree; failure to secure compensation
Sana Ulla Chadder	55	Ticonderoga, New York	State charges – Grand larceny in the first degree; falsifying business records in the first degree; failure to secure compensation
Maryam Qaiser	41	Ticonderoga, New York	State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Saleem Hayat	34	Port Henry, New York	State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Muhammad Jahangir	23	Queensbury, New York	State charges – Grand larceny in the second degree; failure to secure compensation (misdemeanor)
Samone Marshall	27	Ticonderoga, New York	State charges – Grand larceny in the second degree; failure to secure compensation (misdemeanor)
Chaudary Khan	54	Keesville, New York	State charges – Grand larceny in the first degree; falsifying business records in the first degree; failure to secure compensation
Tukk Simpson	48	Crown Point, New York	State charges – grand larceny in the second degree; falsifying business records in the first degree
Arshad Nazir	53	Plattsburgh, New York	Federal charges – Conspiracy to commit health care fraud; offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries State charges – Grand larceny in the first degree; falsifying records in the first degree; failure to secure compensation

The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.

United States Attorney Grant C. Jaquith stated: “These charges allege the theft and waste of taxpayer dollars by the owners and operators of medical transportation companies. This week’s arrests should put all companies on notice that we will not tolerate the abuse of the public fisc through such schemes as false billing and kickbacks paid to beneficiaries, nor the corruption of medical transportation services on which many people legitimately rely to get to important appointments.”

Essex County District Attorney Kristy Sprague said: “Corrupt practices within the medical transportation business have been spreading for years like a cancer in our county and throughout the region. The arrests this week should make it crystal clear to any medical transport companies even thinking about breaking the law that my office and my law enforcement partners will be coming after them and will prosecute them to the fullest. These cases are the result of extraordinary teamwork by state and federal law enforcement partners and were made possible through the perseverance of the New York State Police and Inspector General Catherine Leahy Scott.”

New York State Police Superintendent George P. Beach II said: “These arrests are the culmination of a two-year long investigation into corruption involving Medicaid transportation providers, who were operating an elaborate scheme to defraud Medicaid and steal taxpayer dollars. I commend the efforts of State Police members and our federal, state and local partners for their diligence on this case. We simply will not stand for those who defraud taxpayers, and victimize customers and other legitimate providers, for their own personal gain.”

FBI Acting Special Agent in Charge Janelle M. Miller stated: “Individuals who defraud health care programs place additional burdens and costs on the health care system, which affects every American citizen. The FBI will continue to work closely with our law enforcement partners to identify any individuals who defraud the system for personal gain.”

New York State Inspector General Catherine Leahy Scott stated: “With these medical transport companies it was the New York taxpayers who were taken for a ride. For years, the Northway corridor has been plagued with corruption in the medical transport industry, and this week’s law enforcement actions send a clear message that those who abuse the Medicaid and Workers’ Compensation systems for illicit gains will be relentlessly pursued and prosecuted. I sincerely thank our state and federal law enforcement partners for their extraordinary efforts and cooperation, and particularly District Attorney Sprague for her tremendous dedication and focus on bringing these cases to fruition.”

The Medicaid program is a federal and state health care program that provides health care benefits to individuals and families who meet specified financial and other eligibility requirements, and certain other individuals who lack adequate resources to pay for medical care. In general, Medicaid can cover the cost of getting to and from a medical appointment when a beneficiary does not have other, suitable transportation.

The federal charges are being investigated by the FBI, and the New York State Police’s Special Investigations Unit and Troop B, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.

The state charges are being investigated by the New York State Police’s Special Investigations Unit and Troop B, as well as the Office of the New York State Inspector General, and are being prosecuted by the Office of Essex County District Attorney Kristy Sprague.

Several additional agencies are assisting in this investigation, including the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.