The owner of an Ulster County medical transportation service company today pleaded guilty to grand larceny in the second degree for stealing $227,000 by unlawfully billing the Medicaid program by inflating charges and billing for services that were never provided, State Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji announced today.
Mohammad A. Khan, 69, the owner of Atlas Limo pleaded guilty in Ulster County Court before Judge Bryan Rounds and paid $227,000 in restitution. Sentencing was scheduled for Jan. 4.
“Khan falsified bills and bribed patients to defraud Medicaid, bolstering his own profits at the expense of New Yorkers,” DiNapoli said. “Now, thanks to my partnership with District Attorney 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.”
“As we continue to work hand-in-hand with NYS Comptroller Tom DiNapoli to combat fraud in Ulster County, it is both gratifying to hold the principals of the Atlas Limo Corporation accountable and to recoup funds fraudulently obtained by them. I remain committed to rooting out fraud, public and otherwise, because it is not just a matter of accounting for public money, it is also necessary to restore public trust,” Nneji said.
Under the Medicaid program, patients may use transportation services to go to legitimate medical appointments. Providers then bill the Medicaid program. Group rides are not allowed without prior authorization, and approved providers can only bill for mileage once for a group.
As part of the joint investigation, DiNapoli’s investigative team and the Ulster County District Attorney’s Office found that the defendant systematically billed the Medicaid program individually for rides that were actually unauthorized group rides and for rides that never occurred. The investigation also found patients were paid kickbacks to use Atlas Limo’s services and facilitate the fraud. The crimes occurred from May 2024 to January 2025.
Khan was arrested in June 2025 along with his son, Muhammad W. Khan, the owner of MAK Limo. Both companies were enrolled in the Medicaid program.
Muhammad W. Khan pleaded guilty to stealing over $1 million in Medicaid funding. He was ordered to pay full restitution and was sentenced to three to nine years of state prison in September 2026.
DiNapoli has zero tolerance for Medicaid fraud and fraud of any public monies. Over the last 18 months, DiNapoli’s investigations of Medicaid fraud have resulted in 58 arrests and the ordered recovery of nearly $50 million.