OMIG Assists Attorney General in Holding Transportation Companies Accountable for Defrauding Medicaid
The New York State Office of the Medicaid Inspector General’s (OMIG) investigative efforts played a key role in supporting the state attorney general’s office in holding several transportation companies accountable for their roles in various medical transportation fraud schemes.
As announced by the attorney general’s office yesterday, 16 transportation companies throughout the state entered into settlements totaling more than $13 million following allegations they billed Medicaid for rides that never occurred, inflated mileage, charged for tolls that were not incurred, used unlicensed drivers, and paid illegal kickbacks to Medicaid recipients. Seven other companies -- Dutchess Black Car Service, Green Cab BNY, Buffalo Taxi Services, Seaman Radio Dispatchers, TemboCare Transportation Express, SMI Transportation and Westchester County Black Car Service -- face civil lawsuits after allegedly continuing to engage in fraudulent practices.
In addition to civil settlements, criminal charges were brought against individuals involved in the alleged schemes. David Moore, 56, of Interlaken, operator of ASAP 2 Transportation, pleaded guilty to grand larceny after admitting to submitting inflated claims for payment that were the result of unlawful kickback payments to multiple Medicaid recipients. James Bessell, 65, of Shirley, operator of Jim Jim Rentals, was charged with grand larceny, health care fraud, offering a false instrument for filing, and payment of kickbacks for his role in a Medicaid fraud scheme. Jose Ortiz, 63, of the Bronx, the owner of American Base, was charged and pleaded guilty to offering a false instrument for filing in the second degree, a misdemeanor, in connection with the unlawful operations of that company.
These charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.