Schenectady medical transport owners charged in $4.7M fraud

SCHENECTADY, N.Y. (WNYT) — Three owners of Medicaid transportation companies are charged with stealing more than $4.7 million from New York’s Medicaid program through alleged phony billing. State Comptroller Thomas DiNapoli and State Police Superintendent Steven G. James announced the arrests of Ismat Farhan of Slingerlands and Effat Rizwan and Fouzia Rizwan, of Schenectady. Under the Medicaid program, patients may use transportation services to go to legitimate medical appointments, and providers then bill Medicaid. Group rides are not allowed without prior authorization, and approved providers can only bill mileage once for a group. According to State Police, Izmat Farhan ran USA Medical Transport Inc. from a used car dealership with his brother Effat Rizwan. Rizwan also ran NYS Med Transport Inc. and EZ Medical Transportation Inc. from the same location, and EZ Medical Transportation was owned by his wife, Fouzia Rizwan. In December 2024, DiNapoli’s Division of Investiga