En esta noticia
Three family members in New York have been arrested and charged in connection with an alleged scheme that defrauded the state’s Medicaid program of more than $4.7 million through fraudulent medical transportation claims.
According to an announcement by State Comptroller Thomas P. DiNapoli and State Police Superintendent Steven G. James, the defendants allegedly used three transportation companies based in Schenectady to bill Medicaid for services that were never provided or were falsely reported.
The investigation identified three alleged methods: billing for rides that never took place, presenting unauthorized group trips as multiple individual rides, and inflating mileage. Investigators also allege that the defendants paid kickbacks to passengers who helped with the scheme.
Who are the three family members charged in the Medicaid fraud case?
The defendants are Ismat Farhan, from Slingerlands, her brother Effat Rizwan, and his wife, Fouzia Rizwan, both from Schenectady.
According to the comptroller’s office, Farhan was charged with one count of grand larceny in the first degree. Effat Rizwan faces one count of grand larceny in the first degree and another of grand larceny in the second degree. Fouzia Rizwan was charged with one count of grand larceny in the first degree.
All three appeared in Schenectady City Court and were arraigned before Judge Teneka Frost. They are scheduled to return to court on December 7, 2026.
The three relatives were connected to USA Medical Transport Inc., NYS Med Transport Inc. and EZ Medical Transportation Inc. Farhan operated USA Medical Transport with her brother from a used car dealership. Effat Rizwan ran the other transportation businesses from the same location, including EZ Medical, which was owned by his wife.
How the alleged $4.7 million Medicaid scheme worked
The investigation began in December 2024, after the comptroller’s Division of Investigations received a complaint about USA Medical Transport. The office worked with the New York State Police Special Investigations Unit to examine the companies’ Medicaid claims.
A forensic review of claims covering January 1, 2020, through December 21, 2024, identified allegedly fraudulent billing across the three businesses.
The amounts attributed to each company were:
- USA Medical Transportation: more than $2.9 million in allegedly fraudulent invoices for group trips, plus $340,000 for rides that never occurred.
- NYS Medical Transport: more than $79,000 in allegedly fraudulent group rides and over $4,500 for trips that did not take place.
- EZ Medical Transportation: more than $1.1 million in allegedly fraudulent group-trip claims and $184,000 for rides that never happened.
Together, the claims amounted to more than $4.7 million in alleged losses to New York’s Medicaid program.
What Medicaid rules apply to medical transportation?
Medicaid allows eligible patients to use transportation services to attend legitimate medical appointments. Approved providers can then bill the program for the services they provide.
However, the rules impose specific limits on group transportation. Group rides require prior authorization, and providers can only bill for mileage once for a group. The alleged conduct involved claims that investigators say violated those requirements.
The case is part of a broader effort by the comptroller’s office to investigate fraud involving public funds. Over the previous 18 months, DiNapoli’s Medicaid fraud investigations had resulted in 61 arrests and more than $50 million in ordered recoveries, according to the agency.