Federal authorities have charged two executives of a Long Island medical transportation company with orchestrating a sophisticated scheme that allegedly defrauded Medicaid of $35 million over a six-year period.
Saad Aziz, the owner of Tri-Hamlet Taxi Inc., and Zabed Chowdhury, the company’s manager, stand accused of billing the government healthcare program for transportation services that were never provided. The defendants allegedly submitted claims for rides to methadone treatment facilities that existed only on paper.
According to the indictment unsealed Wednesday in Central Islip, New York, the two men developed an elaborate system of kickbacks to facilitate their fraudulent operation. They allegedly paid Medicaid beneficiaries to request medical transportation services from their company, ostensibly for necessary methadone treatment appointments.
Federal prosecutors have included video evidence in their case, with still images from surveillance footage allegedly showing both Aziz and Chowdhury making illegal payments to undercover law enforcement agents who were posing as Medicaid beneficiaries. These recordings were cited in court documents requesting substantial bail packages for the defendants.
The scheme extended beyond billing for nonexistent trips. Prosecutors allege that when the company did provide legitimate transportation services, Aziz and Chowdhury systematically inflated their reimbursement claims by submitting false pickup and drop-off addresses. This manipulation allowed them to bill Medicaid for longer, more expensive routes than were actually traveled.
Both men were arrested last month on a criminal complaint and subsequently released on $1 million bail packages each. They are scheduled for arraignment next week on multiple federal charges, including healthcare fraud conspiracy, conspiracy to defraud the United States, paying healthcare kickbacks, and money laundering conspiracy.
The financial impact of the alleged fraud appears to have been substantial. According to prosecutors, the defendants used their illicit proceeds to acquire investment properties and residential homes with a combined value of approximately $6 million.
U.S. Attorney Joseph Nocella Jr. emphasized the severity of the allegations, noting that the defendants allegedly transformed a program designed to provide vulnerable Medicaid beneficiaries with access to critical medical care into a mechanism for personal enrichment. He stated that the scheme involved paying illegal kickbacks, billing for rides that never occurred, and inflating reimbursement claims through false information.
Harry T. Chavis Jr., special agent in charge of the IRS criminal investigation division, highlighted the broader implications of the alleged fraud. He noted that the scheme not only misused taxpayer funds but also potentially undermined access to legitimate medical transportation services for those who genuinely needed assistance.
The medical transportation program targeted in this alleged scheme serves a crucial function in the healthcare system, providing transportation to medical appointments for Medicaid beneficiaries who might otherwise struggle to access necessary care, particularly for substance abuse treatment.
If convicted on all charges, both defendants face potential sentences of up to 20 years in federal prison. Aziz is represented by attorney Kevin Keating, while Evan Sugar represents Chowdhury in the proceedings.
The case underscores ongoing federal efforts to combat healthcare fraud, particularly schemes targeting Medicaid and other government-funded programs designed to assist vulnerable populations.
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