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Attorney general exposes Medicaid fraud scheme with transportation companies

Attorney General Letitia James says these companies allegedly billed Medicaid for fake rides, tolls, extending trip mileage and even using unlicensed drivers.

Valerie Ryan

Jan 9, 2025, 10:45 PM

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Medical transportation providers are under fire after being accused of stealing from Medicaid and Medicaid users.

Attorney General Letitia James says these companies allegedly billed Medicaid for fake rides, tolls, extending trip mileage and even using unlicensed drivers.

In other cases, she mentions that providers would target substance users, recruiting them for fake-billing schemes in exchange for cash.

Now, 54 more companies are being ordered to stop the alleged illegal activity before they face serious consequences.

Fernando Mateo, spokesperson for the NYS Federation of Taxi Drivers, says this fraud is avoidable with GPS tracking technology.

At this time, 11 people have been criminally convicted in connection to these fraudulent schemes and $10 million have been secured from transportation companies, according to the attorney general's office.

James warns people if this continues, they can face hefty fines and prison time.

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