The owners of 10 medical transport companies in upstate New York this week were charged with leading an extensive scheme to defraud the workers' compensation and Medicaid systems of millions of dollars, law enforcement officials announced.
“With these medical transport companies it was the New York taxpayers who were taken for a ride,” New York State Inspector General Leahy Scott said in a news release. “For years, the Northway corridor has been plagued with corruption in the medical transport industry, and this week’s law enforcement actions send a clear message that those who abuse the Medicaid and workers’ compensation systems for illicit gains will be relentlessly pursued and prosecuted."
Authorities arrested 12 people after a two-year investigation into allegations that included billing Medicaid for trips that never occurred, failing to provide workers' compensation coverage for employees and filing false documents showing proof of compensation insurance.
The transport companies involved in the alleged schemes include:
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