DiNapoli and Ulster Co. DA Nneji: Owner of Ulster Co. Medical Transportation Company Pleads Guilty to Stealing $1.1 Million in Medicaid Fraud Scheme

The owner of an Ulster County medical transportation service company today pleaded guilty to grand larceny in the first degree for stealing over $1.1 million by unlawfully billing the Medicaid program by inflating charges and billing for services that were never provided, State Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji announced today.

Muhammad W. Khan, 40, the owner of MAK Limo, pleaded guilty in Ulster County Court before Judge Brian Rounds. He faces up to 15 years in prison and will pay $1.1 million in restitution. Sentencing was scheduled for Sept. 9.

"Muhammed Khan falsified bills and bribed patients so he could bilk the Medicaid program of over a million dollars, but now he is being held accountable for his crimes," DiNapoli said. "I thank Ulster County District Attorney Nneji for his partnership in fighting public fraud and protecting essential funds meant to safeguard the health of millions of New Yorkers."

"Such rampant fraud as this crosses multiple counties in this state and normally flies under the radar," Nneji said. "I am incredibly grateful to State Comptroller DiNapoli for coming in here and working collaboratively with us, permitting me to designate one of his attorneys as assistant district attorney, and relying on the resources of his office in this case. It is gratifying to put an end to any fraud against the public, and I look forward to continuing our joint effort for the people of Ulster County."

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

As part of the joint investigation, DiNapoli's investigative team and the Ulster County District Attorney's Office found that the defendant systematically billed the Medicaid program individually for rides that were actually group rides and for rides that never occurred. The investigation also found patients were paid kickbacks to use MAK Limo's services and facilitate the fraud. The crimes occurred from November 2020 to August 2024.

Khan was arrested in June 2025 along with his father, Mohammad A. Khan, 68, the owner of Atlas Limo. Both companies were enrolled in the Medicaid program and received over $5.8 million dollars in Medicaid payments from New York state.

Mohammad A. Khan was charged with grand larceny in the second degree. He was accused of stealing $111,548.

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.ny.gov/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.