New York Attorney General Letitia James today 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 announced today, Farhan will pay $862,500 to the New York State Medicaid Program.

“Medicaid is meant to help support the medical needs of vulnerable New Yorkers, not to pad a company’s profits,” said Attorney General James. “Farhan and USA Medical Transport took advantage of their patients and taxpayers by billing Medicaid for thousands of services that were never provided. My office will keep ensuring that our state’s laws are followed and that Medicaid dollars are spent helping New Yorkers in need.”

Medicaid recipients are eligible to receive transportation to and from medical appointments with doctors or healthcare providers who are enrolled with Medicaid. Additionally, Medicaid will reimburse all enrolled transportation companies for these services. To operate as a Medicaid transportation provider, a transportation company must enroll and certify that it will follow the...

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