The owner of an Ulster County medical transportation company was sentenced to three to nine years in state prison for stealing more than $1.1 million from the Medicaid program, state Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji announced Friday.
Muhammad W. Khan, 31, owner of MAK Limo, also was ordered to pay full restitution. He pleaded guilty in March to grand larceny in Ulster County Court before Judge Bryan Rounds.
According to investigators, Khan unlawfully billed Medicaid by inflating charges, billing individually for group rides and submitting claims for rides that never occurred. The investigation also found that patients were paid kickbacks to use MAK Limo’s services and facilitate the fraud.
The scheme occurred from November 2020 through August 2024.
Under the Medicaid program, patients can use approved transportation providers to travel to medical appointments. Group rides require prior authorization, and providers can bill mileage only once for a group.
“Khan falsified bills and bribed patients to deprive the Medicaid program of over a million dollars, taking money that should have rightly been spent on healthcare for New Yorkers,” DiNapoli said.
Nneji said the case was the result of a joint effort by investigators and prosecutors.
Khan was arrested in June 2025 along with his father, Mohammad A. Khan, 69, owner of Atlas Limo. Both companies were enrolled in the Medicaid program and received more than $5.8 million in Medicaid payments from New York state.
Mohammad Khan was charged with second-degree grand larceny and accused of stealing $111,548.