AG James announced new measures to stop a major source of Medicaid fraud by transportation companies that use fake billing schemes to steal from Medicaid and exploit vulnerable patients. The Office of the Attorney General (OAG) today issued cease and desist notices to 54 transportation companies throughout the state, warning them of potential financial penalties and prison sentences if they continue their alleged illegal schemes of overcharging Medicaid for fraudulent services. The OAG’s investigations into the medical transportation industry for ongoing fraud have already secured over $10 million and led to criminal convictions of 11 individuals. In addition to issuing the cease and desist notices today, Attorney General James announced recent settlements with four transportation companies totaling over $847,000 for their illegal billing schemes.

“Companies that illegally profit by exploiting Medicaid patients steal taxpayer money and undermine the health care system that all New Yorkers rely on. Today I am putting the entire medical transportation industry on notice to stop these schemes that take advantage of vulnerable New Yorkers and steal critical funds intended to provide health care to those in need. My office has already recovered millions of dollars and secured prison sentences for those committing this fraud. I will continue to do everything my power to shut down these schemes and ensure that state funds meant to help New Yorkers in need are not stolen through fraud and corruption.”- AG James

https://ag.ny.gov/press-release/2025/attorney-general-james-puts-medical-transportation-industry-notice-announces-new