Authorities have arrested the owner and driver of a Schenectady-based medical transport company and accused them of defrauding the state’s Medicaid program by more than $700,000.
New York State Comptroller Thomas P. DiNapoli, Schenectady County District Attorney Robert M. Carney, and Schenectady County Sheriff Dominic Dagostino announced the arrest of Muhammad Adnan Saeed, owner of Sublime Medical Transportation, and Heather Smith, the company’s employee and driver, for allegedly stealing more than $700,000 from the state’s Medicaid program. They accuse Saeed and Smith of inflating invoices by falsely claiming that group rides were distinct, individual rides, leading to unlawful mileage payments for each participant in the group.
“Muhammad Adnan Saeed and Heather Smith allegedly schemed to cheat the Medicaid program and diverted money meant to provide healthcare for New Yorkers in need into their own pockets,” DiNapoli said. “Medicaid is a vital program, and my office will continue to partner with law enforcement to hold those who attempt to defraud it accountable. My thanks to District Attorney Carney and Schenectady County Sheriff Dagostino for their partnership in protecting the Medicaid program.”
District Attorney Carney said: “These defendants lined their pockets at the expense of a critical government program designed to ensure our vulnerable, low-income population receives the medical care it needs. Worse, the defendants’ fraud was committed on the backs of people struggling with addiction. Rather helping them get the treatment they need, the defendants used them to cheat Medicaid and paid them cash kickbacks, enabling their addiction. They inflated their profits by transporting patients from Schenectady to Amsterdam rather than down the street and from Oneonta to Utica. Mr. Saeed then sent hundreds of thousands of dollars to his family overseas to hide his fraudulent earnings. I thank State Comptroller DiNapoli and his staff for their work uncovering the multiple layers of fraud perpetrated by these defendants.”
Saeed, 40, is the president of Sublime Medical Transportation, a Schenectady County company that participates in the Medicaid program by providing transportation for program members. Smith, 46, is Sublime’s supervising driver.
According to Medicaid regulations, patients can use transportation services for authorized visits, which the provider bills to Medicaid. Licensed providers can only bill for mileage once for a group, and they cannot permit group rides without prior authorization.
A combined investigation discovered that Saeed and Smith reportedly falsely billed the Medicaid program over a four-year period, claiming payment for individual rides that were actually unauthorized group rides and thereby fraudulently increasing the amount the company was paid. The investigators also discovered that Saeed and Smith paid patients kickbacks to use Sublime’s services in order to facilitate the crime.
Saeed faced accusations of fraudulently collecting over $60,000 from New York State’s unemployment insurance program while running Sublime.
Schenectady County Court arraigned Saeed on Friday on charges of health care fraud, grand larceny, money laundering, prohibited medical assistance provider practices, and fabricating business documents. He is due back in court on September 6.
