Attorney General James Puts Medical Transportation Industry on Notice, Announces New Actions to Stop Ongoing Fraud

AG James Has Secured More Than $10 Million From Transportation Companies, Won Criminal Convictions of 11 Individuals

“Counterfeit opioids with fentanyl are a grave threat to New Yorkers,” said Attorney General James. “Our investigation dismantled a drug network moving dangerous narcotics in the Hudson Valley. My office remains committed to tackling the opioid crisis, and I thank the New York State Police for theirNew York Attorney General Letitia James announced new measures to combat Medicaid fraud perpetrated by transportation companies using fraudulent billing schemes to exploit vulnerable patients and steal taxpayer funds. On [insert date], the Office of the Attorney General (OAG) issued cease-and-desist notices to 54 transportation companies statewide, warning of severe penalties—including fines and prison sentences—if the alleged fraudulent practices continue.

The Attorney General’s Medicaid Fraud Control Unit (MFCU) has already recovered over $10 million and secured criminal convictions against 11 individuals in connection with these schemes. Additionally, recent settlements with four transportation companies will return more than $847,000 to the state.

“Companies that illegally profit by exploiting Medicaid patients steal taxpayer money and undermine the health care system that all New Yorkers rely on,” said Attorney General James. “Today, I am putting the entire medical transportation industry on notice to stop these schemes that take advantage of vulnerable New Yorkers and steal critical funds intended to provide health care to those in need.”

Medicaid reimburses authorized businesses for transporting patients to and from covered medical appointments. Companies must use licensed drivers, proper vehicles, and bill only for services actually provided. Fraudulent practices uncovered by the OAG include billing for fake trips, inflating mileage, adding nonexistent tolls, and using unlicensed drivers. In some cases, companies exploit vulnerable patients by offering kickbacks to Medicaid recipients in exchange for requesting their services. These kickback schemes often target patients in substance abuse treatment, putting them at even greater risk.

Attorney General James announced that cease-and-desist notices have been served to the 54 transportation companies, including demands for repayment from 15 of them for fraudulently obtained funds. The notices outline violations and potential penalties, including civil and criminal consequences such as prison time and financial restitution. The OAG has pledged to pursue all legal remedies if the companies fail to comply.

In addition to the cease-and-desist actions, the Attorney General announced four new settlements with transportation companies for Medicaid fraud violations, totaling over $847,000 in recovered funds:

City Service Transportation, Inc. in Erie County will repay $373,216.11. AJ Medical Transportation Co. in Albany County will repay $350,000. Safe Ride of WNY, Inc. in Erie County and its owner, Robert Sapienza, will repay over $66,000. Half Moon Medical Transportation, Inc. in Saratoga County will repay $58,000. The OAG thanked the United States Department of Health and Human Services, the New York State Department of Health, the Office of the Medicaid Inspector General, and Medical Answering Services LLC for their collaboration in these investigations.

The MFCU investigations have led to numerous criminal convictions of fraudulent transportation providers across the state. Notable cases include:

The December 2024 convictions of five taxi company owners and their companies, which stole more than $4.4 million through fake billing and kickback schemes. The October 2024 convictions of three transportation company owners in Monroe County for similar fraudulent activities, resulting in prison time and repayment of over $2.1 million.

The March 2023 recovery of over $860,000 from a Capital Region transportation company for fraudulent billing practices. New Yorkers who suspect Medicaid fraud or have concerns about nursing home abuse or neglect can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. For emergencies, please call 911.

If you need assistance obtaining Medicaid transportation services, you can contact New York’s Medical Transportation Broker at the following numbers:

NYC, Long Island, and Westchester: 844-666-6270 Upstate: 866-932-7740 For more information, visit the MAS website.