The owner of a medical transport company has pleaded guilty to second-degree grand larceny. Authorities say Muhammad A. Khan defrauded Medicaid of $227,000 by inflating charges and billing the program for services that were never provided. Khan, along with his son Mohammad K. Khan, was arrested in June 2025 following a joint investigation by the Office of the State Comptroller and the Ulster County District Attorney's Office. As part of his plea agreement, Khan paid full restitution of the stolen funds at the plea hearing.

Medicaid pays limo companies to provide transportation for patients' medical appointments. The investigation found that between May 2024 and January 2025 while operating Atlas Limo, Khan fraudulently billed individually for unauthorized group rides and rides that never occurred. The investigation also revealed that Khan paid kickbacks to Medicaid recipients to facilitate the fraud scheme.

“Khan falsified bills and bribed patients to defraud Medicaid, bolstering his own profits at the expense of New Yorkers,” said State Comptroller Thomas P. DiNapoli in a statement announcing the guilty plea. “Now, thanks to my partnership with District Attorney [Emmanuel] Nneji, he is facing the consequences of his actions. Millions rely on Medicaid for their health care needs. I will continue to partner with law enforcement throughout the state to root out fraud and protect the integrity of the program.”

Khan’s son, owner of MAK Limo, has already pleaded guilty to using similar tactics to defraud the Medicaid program out of more than $1 million. At sentencing last month the younger Khan was sentenced to three to nine years in state prison and ordered to make full restitution of the stolen funds.\