New York State Inspector General Catherine Leahy Scott, Essex County District Attorney Kristy Sprague, New York State Police Superintendent George P. Beach II, United States Attorney for the Northern District of New York Grant C. Jaquith, and FBI Special Agent-in-Charge Charge Janelle M. Miller today announced the arrests of the owners and operators of 11 medical taxi and transport companies servicing the Adirondack and Capital regions on charges alleging millions of dollars in thefts and frauds against Medicaid and the Workers’ Compensation system.
The charges are the result of a two-year joint state and federal investigation that included the execution of multiple search warrants and 13 arrests this week. The allegations include billing Medicaid for trips that never occurred, bribing Medicaid recipient patients with kickbacks for using their specific transport companies, failing to provide employees of the transport companies with required Workers’ Compensation insurance, and filing documents falsely certifying such required coverage in order to provide Medicaid transport services. Altogether, the charges allege multiple millions of dollars in fraudulent Medicaid billings. The investigation is ongoing.
Medicaid is a county, state and federally funded benefit program proving health care coverage for individuals with limited income.
“With these medical transport companies it was the New York taxpayers who were taken for a ride,” said Inspector General Leahy Scott. “For years, the Northway corridor has been plagued with corruption in the medical transport industry, and this week’s law enforcement actions send a clear message that those who abuse the Medicaid and Workers’ Compensation systems for illicit gains will be relentlessly pursued and prosecuted. I sincerely thank our state and federal law enforcement partners for their extraordinary efforts and cooperation, and particularly District Attorney Sprague for her tremendous dedication and focus on bringing these cases to fruition.”
“Corrupt practices within the medical transportation business have been spreading for years like a cancer in our county and throughout the region,” Said Essex County District Attorney Kristy Sprague, “The arrests this week should make it crystal clear to any medical transport companies even thinking about breaking the law that my office and my law enforcement partners will be coming after them and will prosecute them to the fullest. These cases are the result of extraordinary teamwork by state and federal law enforcement partners and were made possible through the perseverance of the New York State Police and Inspector General Catherine Leahy Scott.”
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