Ghost Rides Drained $196 Million—Nobody Stopped It

Ambulance driving on urban street with lights flashing.

New York’s Medicaid transportation system has hemorrhaged at least $196 million through systematic fraud that exploited vulnerable Americans while corrupt operators pocketed taxpayer dollars meant for disabled and low-income patients.

Story Snapshot

Federal audit revealed $196 million in improper Medicaid transport reimbursements from 2018-2019, with over 72% of audited payments failing compliance requirements
Recent indictments in 2025 exposed multi-million dollar schemes involving fake rides, kickbacks to patients, and ghost billing across multiple New York counties
New York Attorney General’s five-year investigation targeted 54 firms, recovering over $10 million while charging 25 companies with systemic fraud
Fraudsters exploited poor oversight to bill for non-existent trips, bribe Medicaid recipients with cash, and falsify documentation while legitimate patients suffered service disruptions

Massive Federal Audit Exposes Systemic Failures

The U.S. Department of Health and Human Services Office of Inspector General audited 4.7 million non-emergency medical transportation payments totaling $269 million in federal reimbursements to New York City providers during 2018-2019. Investigators found at least $84 million definitively improper and another $112 million potentially improper, creating a staggering $196 million in overclaims. The audit revealed missing trip verification, invalid provider records, and inadequate oversight by New York’s NEMT broker, LogistiCare (now Modivcare). This represents a systemic breakdown that traces back to a 2011 audit exposing identical vulnerabilities, which state officials promised but failed to fix. The failure to implement basic quality assurance measures demonstrates government incompetence that enabled massive taxpayer losses.

Criminal Operations Bilked Millions Through Elaborate Schemes

State Comptroller Thomas DiNapoli and district attorneys announced major indictments throughout 2025, exposing sophisticated fraud operations. In November 2025, Orange County prosecutors charged Ari Manojkumar and associates from Unique Class Limo and SNR Limo with stealing $3.5 million through fake trips and overbilling for group rides. Two months earlier, Schenectady County indicted Mohammad Chaudhry, owner of Angel Medical Transportation, and office manager Noah Shook for defrauding Medicaid of $1.8 million between 2020 and 2024. These criminals submitted bills for ghost rides that never occurred, falsified destination records, and delivered cash kickbacks to recruit Medicaid recipients into their schemes. The operations exploited vulnerable populations, including substance abuse patients, turning them into unwitting accomplices.

Pattern of Exploitation Spans Multiple Counties

The fraud extends far beyond New York City, with documented schemes in North Country, Buffalo, Sullivan County, and other regions. In the North Country case from 2015-2018, Ti Taxi operators billed Medicaid for trips patients drove themselves, created fake drivers, and offered kickbacks including cash and cigarettes, resulting in six guilty pleas. Buffalo business owner Arkan Fadhel received federal sentencing for Medicaid fraud conspiracy. Sullivan County authorities investigated hundreds of allegedly fake services. This pattern reveals how fraudsters systematically targeted a program designed to help disabled and low-income Americans access medical care. The widespread nature across multiple counties demonstrates this was not isolated criminal activity but rather exploitation of known systemic weaknesses that bureaucrats refused to address.

Enforcement Intensifies as Costs Explode

Attorney General Letitia James launched a comprehensive five-year investigation targeting over 50 firms, issuing cease-and-desist orders to 54 companies by January 2025. By June 2025, her office filed lawsuits and criminal charges against 25 firms, recovering over $10 million through settlements. Comptroller DiNapoli emphasized the importance of partnerships to “root out waste, fraud and abuse” while District Attorney Robert Carney condemned criminals for “stealing from vulnerable people in need.” State Senate Republicans, led by Senator George Borrello, pushed for comprehensive reforms citing “explosive costs” and “widespread fraud” driving Medicaid transportation expenses to unsustainable levels. The federal OIG recommended that New York refund at least $84 million and implement proper broker monitoring. Despite these enforcement actions, ongoing probes suggest the fraud continues, and legitimate patients face transportation gaps as indicted companies shut down operations.

Taxpayers Bear the Cost of Government Negligence

The $196 million in improper payments represents stolen money from hardworking Americans forced to fund a system riddled with corruption and incompetence. New York City bore the brunt of losses, but the financial impact extends to federal taxpayers who fund Medicaid’s federal share. Beyond monetary theft, vulnerable disabled and low-income patients who genuinely need medical transportation face service disruptions as fraudulent providers collapse under investigation. This scandal exposes how bloated government programs with inadequate oversight become magnets for criminals who exploit bureaucratic failures. The situation vindicates conservative concerns about government waste and the consequences of unchecked spending programs that lack accountability. State officials promised reforms after the 2011 audit yet allowed the same problems to persist for over a decade, demonstrating how entrenched bureaucracies resist change even when fraud is documented and solutions are clear.