The owner of a Schenectady County medical transportation company has been indicted on charges of stealing more than $1.8 million from New York State’s Medicaid program over nearly four years. State Comptroller Thomas P. DiNapoli, Schenectady County District Attorney Robert Carney, and Schenectady County Sheriff Dominic Dagostino announced the charges on Friday. The company’s office manager was also charged with money laundering in connection with the alleged scheme.
According to authorities, Mohammad Chaudhry, 43, owner of Angel Medical Transportation, is accused of inflating Medicaid bills between January 2020 and September 2024 by submitting claims for rides that did not occur, overbilling for group rides without proper authorization, and misrepresenting destinations to increase payments. Office manager Noah Shook, 45, is accused of paying kickbacks to Medicaid recipients as part of the operation.
“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,” said DiNapoli. “My office will continue to partner with law enforcement to root out waste, fraud and abuse, and protect the state’s Medicaid program. I thank District Attorney Carney and Sheriff Dagostino and his Criminal Investigations Unit for their partnership in the investigation. I would also like to thank Juliet T. Hodkins, acting head of the Health and Human Services Office of Inspector General, for her office’s assistance.”
District Attorney Carney added: “Muhammad Chaudhry is accused of stealing from a program meant to support vulnerable people in need. 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. My office will continue to protect taxpayer funds and hold accountable anyone who steals from these programs for personal profit.”
Authorities explained that under Medicaid regulations providers can bill for transportation services only when they are legitimate appointments; group rides require prior approval and may be billed only once per group trip.
The investigation found that Chaudhry allegedly billed for individual rides that were actually unauthorized group trips—thus increasing company profits—and submitted claims for trips that did not happen at all or had falsified destinations.
Investigators also allege that some patients seeking drug treatment received cash kickbacks from Chaudhry and Shook in exchange for using their services as part of this scheme; some recipients reportedly used these payments to purchase illegal drugs.
Further inquiry revealed that more than $400,000 in stolen funds was wired overseas by Chaudhry toward building what one witness described as a “palace.”
Both defendants appeared before Judge Matthew J. Sypniewski in Schenectady County Court: Chaudhry faces grand larceny, health care fraud, and money laundering charges; Shook faces money laundering charges alone. Both are scheduled to return to court on November 12.
Officials emphasized that all charges remain accusations until proven otherwise in court.
Since taking office in 2007, Comptroller DiNapoli has encouraged public involvement in reporting fraud involving taxpayer funds through hotlines or online complaints (https://www.osc.state.ny.us/investigations).
