Long Island Ambulette Operators Charged in $35M Medicaid Fraud Scheme
Long Island ambulette operators charged in a $35 million Medicaid fraud scheme.
Why it matters: Why it matters: This case reveals ongoing Medicaid fraud risks, especially in medical transportation services, urging legal and compliance teams to strengthen oversight to prevent costly abuses.
- Saad Aziz and Zabed Chowdhury face charges including health care fraud, kickbacks, and money laundering.
- The defendants operated Tri-Hamlet Taxi Inc., billing over $35 million to Medicaid for fraudulent transport services from 2019 to 2025.
- They paid illegal kickbacks to Medicaid beneficiaries to request rides, often submitting claims for non-existent trips.
- Illicit proceeds funded $6 million in real estate purchases; if convicted, each faces up to 20 years in prison.
- Restitution and forfeiture include $35 million plus real properties and 15 bank accounts.
Two operators of a Long Island ambulette service, Saad Aziz and Zabed Chowdhury (aka "Jared"), were charged with multiple crimes including conspiracy to commit health care fraud and money laundering connected to a $35 million Medicaid fraud.
From January 2019 through October 2025, the defendants used Tri-Hamlet Taxi Inc. to pay illegal kickbacks to Medicaid beneficiaries, inducing them to request medical transportation services primarily for supposed methadone treatments. Yet, many billed trips were never provided.
Authorities found Aziz and Chowdhury directed beneficiaries to falsify pickup or drop-off addresses and request transport to addiction treatment centers in New York City, enabling them to bill for longer, more expensive trips. Over $18 million in claims were submitted for rides exceeding 75 miles alone.
The defendants allegedly used the defrauded Medicaid funds to finance a lavish lifestyle, buying investment properties and homes valued at approximately $6 million.
United States Attorney Joseph Nocella, Jr. stated, "As alleged, the defendants turned a transportation program intended to provide vulnerable Medicaid beneficiaries with access to critical medical care into a vehicle for personal enrichment." Suffolk County District Attorney Raymond A. Tierney added, "These defendants allegedly exploited that lifeline, paying kickbacks and billing for trips that never happened in order to enrich themselves at the expense of taxpayers."
If convicted, each defendant faces up to 20 years in prison, restitution, and forfeiture of at least $35 million, including multiple real estate properties and 15 bank accounts.
This scheme underscores persistent challenges in Medicaid fraud detection and prevention, especially in non-emergency medical transportation, which remains a target for abuse despite ongoing enforcement efforts.
By the numbers:
- $35 million — total fraudulent Medicaid claims submitted
- $18 million — claims for rides over 75 miles
- $6 million — value of investment properties bought with illicit proceeds
- 20 years — maximum prison sentence per defendant