Rensselaer County men indicted for alleged Medicaid fraud

TROY, N.Y. (NEWS10) -- Two Rensselaer County men have been indicted for allegedly stealing from Medicaid through their medical transport company. According to the New York Attorney General's Office, John Gouzos and Richard Sehl, who own Medi Cab Corp., Jay Auto Care, Inc., and Hojo Detail Center, Inc., are accused of overcharging Medicaid by over $650,000.

Medicaid reimburses approved transportation providers for bringing Medicaid patients to and from medical services. Between December 2021 and March 2023, the Attorney General's Office said Guozos and Sehl allegedly submitted false claims to Medicaid for transporting patients from addresses that were much farther away than where they really lived.

Guozos and Sehl also allegedly offered a weekly kickback to customers for the farther rides. New York State law prohibits providers from offering cash kickbacks to anyone for medical services paid for by Medicaid.

According to the indictment, both men were charged with 14 counts, including:

• Second-degree grand larceny
• Second-degree health care fraud
• Two counts of fourth-degree money laundering
• Four counts of medical assistance provider; prohibited practices (kickbacks) in violation of Social Services law
• Three counts of first-degree falsifying business records
• Three counts of offering a false instrument for filing

Three Orange County residents, Muhammad Rizwan Khan, Muhammad Usman Khan, and Farhan Khan, were also indicted for allegedly stealing over $3.8 million from Medicaid through their transportation companies Tristate Express NY, Inc., Meditrans NY, Inc., Empire Trans NY, Inc., and A1 Class Car, Inc.

If convicted, Gouzos and Sehl could face up to 15 years in prison. "Using vulnerable patients to personally profit at the expense of New York taxpayers is reprehensible,” said Attorney General Letitia James. "New Yorkers should be able to trust that all levels of the medical system – from doctors and hospitals to the companies driving them to their appointments – are acting honestly."