Ulster County Medical Transportation Owner Pleads Guilty to $1.1 Million Medicaid Fraud
Muhammad W. Khan, 40, owner of MAK Limo in Ulster County, New York, pleaded guilty to grand larceny in the first degree for defrauding the Medicaid program of over $1.1 million. The guilty plea was entered before Judge Brian Rounds in Ulster County Court on March 25, 2026, according to a joint announcement from New York State Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji [1].
Details of the Fraud
The investigation revealed that Khan systematically inflated charges and billed Medicaid for services that were never provided. This included billing individually for rides that were actually group rides, which require prior authorization, and falsely claiming mileage for nonexistent trips [2]. Patients were offered kickbacks to utilize MAK Limo’s services, further facilitating the fraudulent scheme.
Investigation and Arrest
The fraudulent activity occurred between November 2020 and August 2024. Khan was arrested in June 2025. His father, Mohammad A. Khan, 68, owner of Atlas Limo, was also arrested and charged with grand larceny in the second degree for allegedly stealing $111,548 [1].
Financial Impact and Restitution
MAK Limo and Atlas Limo collectively received over $5.8 million in Medicaid payments from New York State. As part of the plea agreement, Muhammad W. Khan faces up to 15 years in prison and is required to pay $1.1 million in restitution [3]. Sentencing is scheduled for September 9, 2026.
Statements from Officials
“Muhammed Khan falsified bills and bribed patients so he could bilk the Medicaid program of over a million dollars, but now he is being held accountable for his crimes,” stated Comptroller DiNapoli [1]. District Attorney Nneji emphasized the collaborative effort with the State Comptroller’s office, highlighting the importance of joint investigations to combat public fraud [1].
Reporting Medicaid Fraud
New Yorkers who suspect Medicaid fraud can report it by calling the toll-free Fraud Hotline at 1-888-672-4555, filing a complaint online, or mailing a complaint to the Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236 [1].