Ambulette Owners Charged in $35M Medicaid Fraud Scheme

Federal prosecutors have charged the owner and manager of a Long Island ambulette company, Tri-Hamlet Taxi Inc., with orchestrating a scheme to defraud Medicaid of more than $35 million. Owner Saad Aziz and manager Zabed Chowdhury are accused of billing the government for fake, inflated, or kickback-induced medical rides. The alleged fraud, which ran from January 2019 through October 2025, primarily targeted transportation for methadone treatment appointments.

Investigations revealed that undercover officers posed as beneficiaries and received weekly cash payments, totaling over $24,000, in exchange for requesting Tri-Hamlet rides. Prosecutors stated that many of these rides were never provided. The defendants also allegedly manipulated billing by using false pickup addresses and directing beneficiaries to distant treatment centers to inflate reimbursement amounts, with over $18 million claimed for rides exceeding 75 miles.

Prosecutors detailed instances of "ghost rides" where drivers arrived without passengers and saw cash envelopes routinely exchanged. Tri-Hamlet also allegedly submitted nearly 300 claims totaling over $13,000 where the beneficiary and driver shared the same name. The illicit funds were reportedly used to purchase properties valued at approximately $6 million.

If convicted, Aziz and Chowdhury face up to 20 years in prison. Prosecutors are seeking restitution and forfeiture of at least $35 million. Authorities are warning Medicaid beneficiaries that offering or accepting cash for ride selection is a red flag for fraud. New York residents can report suspected fraud to the Office of the Medicaid Inspector General.