New York State Comptroller Thomas P. DiNapoli, Albany County District Attorney Lee C. Kindlon, New York State Police Superintendent Steven G. James, and Acting Medicaid Inspector General Frank T. Walsh, Jr. today announced the arrests of four defendants for allegedly using three Medicaid transportation companies to systematically defraud the program out of more than $1.6 million. Those arrested were Jawad Choudhary, 44, his brother Junaid Choudhary, 43, both of Clifton Park, Danya Matthew, 56, of Springfield Gardens, and Kenneth Smith, 34, of New York City.

“The defendants allegedly tried to scam New York’s Medicaid system out of over $1.6 million by billing for non-existent services, inflating charges, and paying kickbacks,” DiNapoli said. “Medicaid is an essential program that millions of New Yorkers rely on for health care. I thank District Attorney Kindlon, the State Police and the Office of the Medicaid Inspector General for their continued partnership in fighting Medicaid fraud. My office will continue to work with our law enforcement partners to hold those who try to abuse the system accountable.”

“These defendants attempted to defraud the state and steal more than $1 million dollars from the Medicaid program meant for those who need health care the most,” Kindlon said. “I applaud the work of my staff, the Comptroller’s Office, New York State Police and the Office of the Medicaid Inspector General in uncovering this scam to submit false claims and steal more than $1.6 million.”

“The actions of those arrested hurt unsuspecting individuals that rely on Medicare services for a better-quality life. We will not tolerate those willing to victimize their customers and steal millions of taxpayer dollars for their own financial gain. I thank our members, the Comptroller’s Office, the Albany County District Attorney’s Office, and the Office of the Medicaid Inspector General for their partnership in ending these types of fraudulent practices,” James said.

"Medicaid fraud, as this egregious scheme represents, threatens the health and safety of beneficiaries, wastes taxpayer dollars, and drains essential resources from the health care delivery system,” Walsh said. “My office will continue to work closely with our partners to vigorously protect the integrity of the Medicaid program, hold wrong doers fully accountable, and preserve precious health care resources.”

In October 2024, the New York State Police contacted DiNapoli’s office regarding several related Medicaid providers who were allegedly submitting fake bills to the program. The joint investigation and forensic audit that followed determined that three Medicaid transportation companies, A1 Rides Inc., NY Jet Transport Inc. and Ride to Recovery Corp., were allegedly scheming in concert to steal more than $1.6 million from Medicaid. The forensic audit revealed that the four defendants, while operating separate companies, were sharing patients, drivers, and profits.

Under Medicaid regulations, patients may use transportation services for legitimate appointments which are billed to the Medicaid program by the provider. Group rides are not allowed without prior authorization, and approved providers can only bill for mileage once for the group.

Junaid Choudhary, the owner of A1 Rides Inc., allegedly submitted over $1 million in false claims to the Medicaid Program. Jawad Choudhary, owner of NY Jet Transport Inc., allegedly submitted over $400,000 in false claims. Danya Matthew, owner of Ride to Recovery Corp., her son, Smith, and Jawad Choudhary, submitted false claims in the amount of nearly $200,000. These claims were submitted between 2021 through 2025.

The investigation revealed the Choudhary brothers, along with Matthew and Smith, allegedly fraudulently billed the Medicaid program by claiming payment for individual rides, which were actually unauthorized group rides, and fraudulently boosted the amount the companies were paid. The defendants also allegedly billed for rides that never occurred. The investigation also determined that the defendants allegedly paid kickbacks to the patients.

The defendants allegedly used the money for mortgage and credit card payments, cash withdrawals, and other personal and business bank accounts.

In December 2024, while Smith was sentenced for unrelated charges and served prison time, Matthew continued operating Ride to Recovery Corp. with Jawad Choudhary.

Jawad Choudhary was charged with two counts of grand larceny in the second degree. Junaid Choudhary was charged with one count of grand larceny in the first degree. Danya Matthew and Kenneth Smith were both charged with one count of grand larceny in the second degree.

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.