A father and son, both owners of companies providing Medicaid recipients with transportation services in Ulster County, were charged with stealing over $1.2 million by unlawfully billing Medicaid by inflating charges and billing for services never provided, State Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji announced today.
Muhammad W. Khan, 40, was arraigned in Ulster County Court. His father, Mohammad A. Khan, 68, was arraigned in Shawangunk Town Court. Both are residents of Campbell Hall.
“The Khans allegedly fraudulently enriched themselves of over a million dollars from a program that serves people in need of medical services,” DiNapoli said. “They allegedly falsified and inflated bills and bribed patients to use their services to bilk the Medicaid system. Thanks to my partnership with Ulster County District Attorney Nneji, they will be held accountable.”
“The collaboration between our office and the New York State Office of the Comptroller is essential to the detection and prosecution of fraud against New York and Ulster County taxpayers. I thank all the dedicated investigators and government servants from across the state who contributed to building this case resulting in today’s arrest,” Nneji said.
Muhammad W. Khan is the owner of MAK Limo. His father Mohammad A. Khan is the owner of Atlas Limo. Both companies are enrolled in the Medicaid program and received over $5.8 million dollars in Medicaid payments from New York state.
Under the Medicaid program, patients may use transportation services to get 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, investigators from DiNapoli’s office and the Ulster County District Attorney’s Office found that the defendants systematically billed the Medicaid program individually for rides that were actually group rides and for rides that allegedly never occurred. The investigation further found patients were paid kickbacks by both Khans to use their services and facilitate the fraud. Muhammad W. Khan’s alleged fraud occurred between November 2020 through August 2024. Mohammad A. Khan’s alleged crimes occurred between August 2024 and January 2025.
Muhammad W. Khan was accused of stealing $1,103,358 in total. He was charged with grand larceny in the first degree, health care fraud, offering a false instrument for filing, falsification of business records and social services prohibited practices. Muhammad W. Khan was arraigned in Ulster County Court before Judge Bryan Rounds. He is due back in court on Sept. 8.
Mohammad A. Khan was charged with grand larceny in the second degree. He was accused of stealing $111,548. Mohammad A. Khan was arraigned in Shawangunk Town Court before Justice Tara Parlman and is due back in court on June 3.
Comptroller DiNapoli and District Attorney Nneji also thank the Department of Health and Human Services, Office of Inspector General for their assistance in this matter.
The charges filed in this case are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.
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.