State officials announced Friday that the owner of a Schenectady-based medical transportation company has been accused of defrauding New York’s Medicaid program out of more than $1.8 million.
Investigators allege that Mohammad Chaudhry, 43, the owner of Angel Medical Transportation, inflated claims to Medicaid from January 2020 through September 2024. According to prosecutors, he billed for rides that never took place, overcharged for unauthorized group trips, and falsified patient destinations to increase payments.
Chaudhry’s office manager, 45-year-old Noah Shook, is also accused of playing a key role by paying kickbacks to Medicaid recipients to use the company’s services. Officials said some patients receiving drug treatment used the money from those kickbacks to purchase illicit substances.
The charges were announced by Schenectady County District Attorney Robert Carney and New York State Comptroller Thomas DiNapoli.
Authorities allege that Chaudhry used part of the stolen funds to wire more than $400,000 overseas to construct what witnesses described as a “palace.” He has been charged with grand larceny, health care fraud, and money laundering. Shook faces money laundering charges. Both men were arraigned in Schenectady County Court and are scheduled to return on November 12.
“Chaudhry is accused of stealing from a program meant to support vulnerable people in need,” Carney said. “By billing Medicaid for transportation services that were never provided and paying patients to take part in his fraudulent scheme, he lined his own pockets at the expense of our community.”
DiNapoli added that the alleged fraud diverted funds meant to help New Yorkers access vital medical care. “Mohammad Chaudhry and Noah Shook allegedly defrauded the Medicaid program, enriching themselves with nearly two million dollars meant to provide health services to New Yorkers,” he said in a statement.
Authorities emphasized that group rides without prior authorization are prohibited under Medicaid regulations, and any claims for such trips are considered fraudulent. The investigation is ongoing.