Brothers plead guilty to defrauding Medicaid out of $1.6 million

On September 28, 2026, New York State Comptroller Thomas P. DiNapoli, Albany County District Attorney Lee C. Kindlon, New York State Police Superintendent Steven G. James, and Acting Medicaid Inspector General Frank T. Walsh, Jr. announced that two brothers pleaded guilty to grand larceny in the second degree for using three Medicaid transportation companies to systematically defraud the program out of more than $1.6 million. Jawad Choudhary, 44, and Junaid Choudhary, 45, both of Clifton Park, will pay full restitution.

“Jawad and Junaid Choudhary sought to defraud New York’s Medicaid system out of over $1.6 million by billing for non-existent services, inflating charges, and paying kickbacks,” DiNapoli said. “They have now been held accountable for their crimes. Medicaid is a vital program that millions of New Yorkers rely on to get the health care they need. My office will continue to work with our law enforcement partners to protect New York’s program from those who try to abuse the system. I thank District Attorney Kindlon, the State Police and the Office of the Medicaid Inspector General for their continued partnership in fighting Medicaid fraud.”

“The defendants in this case were bilking the state and lying about services provided to those who truly rely on Medicaid funding to live a healthy life,” Kindlon said. “I applaud the work of the Office of the New York State Comptroller, the Medicaid Inspector General, New York State Police and our Financial Crimes Bureau, who will always work together tirelessly to detect, investigate, and dismantle these health care fraud schemes that drain critical resources from programs intended for those who need medical care the most.”

“These two individuals perpetuated a dishonest scheme to financially take advantage of medical transportation people rely on. Financial fraud of any kind is a serious crime that causes all those victimized far-reaching and devastating hardship. We will continue to work with our law enforcement partners to end these illegal acts and hold accountable those who think they can get away with them. I thank the Comptroller’s Office, Albany County District Attorney’s Office, and Office of the Medicaid Inspector General for their continued partnerships,” James said.

“This joint effort sends an unmistakable message to those who seek to line their pockets by defrauding the Medicaid program: You will be held accountable,” Walsh said. “Medicaid fraud threatens the health and safety of beneficiaries, wastes taxpayer dollars, and drains essential resources from the health care delivery system. My office is committed to working closely with our state and law enforcement partners to protect the integrity of the Medicaid program, hold wrong doers fully accountable, and preserve precious health care resources.”

In October 2024, the New York State Police contacted DiNapoli’s office regarding several related Medicaid providers who were allegedly submitting fake bills to the program. The joint investigation and forensic audit that followed determined that three Medicaid transportation companies, A1 Rides Inc., NY Jet Transport Inc. and Ride to Recovery Corp., allegedly stole more than $1.6 million in total from Medicaid.

Under Medicaid regulations, patients may use transportation services for legitimate appointments, which are billed to the Medicaid program by the provider. Group rides are not allowed without prior authorization and approved providers can only bill for mileage once for the group.

Junaid Choudhary, the owner of A1 Rides, submitted over $1 million in false claims to the Medicaid Program. Jawad Choudhary, owner of NY Jet Transport, submitted over $400,000 in false claims. These claims were submitted from 2021 through 2025.

The investigation revealed the Choudhary brothers fraudulently billed the Medicaid program by claiming payment for individual rides which were actually unauthorized group rides, and fraudulently boosted the amount the companies were paid. The defendants also billed for rides that never occurred. The investigation also determined that the defendants allegedly paid kickbacks to the patients.

The defendants used the money for mortgage and credit card payments, cash withdrawals, and other personal and business bank accounts.

Both defendants pleaded guilty to grand larceny in the second degree before Judge William T. Little in Albany County Court. They are due back in court for sentencing on Dec. 14, 2026

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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.ny.gov/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

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Awarding attorney fees to the prevailing party in CPLR Article 78 actions

Plaintiff commenced this proceeding pursuant to CPLR Article 78, seeking, inter alia, to be reinstated to his position as a firefighter with the New York City Fire Department [FDNY] and an award of attorneys' fees and costs and disbursements. 

Supreme Court, among other things, granted that branch of the Plaintiff's petition which was for reinstatement and directed a hearing on the issue of attorneys' fees and costs. Following the hearing, Supreme Court determined that the Plaintiff was entitled to an award of attorneys' fees in the sum of $28,080, plus costs and disbursements. FDNY and the City appealed the Supreme Court's ruling.

Citing Matter of Smith v New York City Fire Dept., 239 AD3d 870 and other decisions, the Appellate Division said that "The general rule is that in [CPLR] article 78 proceedings, the prevailing party may not collect attorneys' fees from the loser unless an award is authorized by agreement between the parties or by statute or by court rule".

In the instant matter the Appellate Division held that "since the award of attorneys' fees was not authorized by agreement, statute, or court rule", the Supreme Court improperly awarded attorneys' fees to the Plaintiff.

Click HERE to access the Appellate Division's decision posted on the Internet.