New York Attorney General Letitia James announced a settlement with Ismat Farhan and his company, USA Medical Transport, which provides transportation to and from medical appointments for Medicaid recipients, for defrauding Medicaid. The settlement resolves the Office of the Attorney General’s (OAG) findings that Farhan submitted over 2,500 false claims and billed Medicaid for approximately $400,000 for transportation services that either did not occur as described, lacked required documentation, or never took place at all, in violation of New York False Claims Act. As a result of the settlement, Farhan will pay $862,500 to the New York State Medicaid Program.
The OAG found that between June 2015 and February 2020, Farhan, through USA Medical Transport, submitted fraudulent claims to Medicaid, including claims for:
- Rides that were not provided;
- Mileage amounts significantly greater than the actual ride;
- Single rides that should have been bundled as a group ride;
- Rides provided by drivers with suspended licenses, including Farhan himself;
- Rides that lacked supporting documentation; and
- Reimbursements for tolls that USA Medical Transport did not actually incur.
