Federal prosecutors say two New York men ran an elaborate ambulette fraud, allegedly billing Medicaid for trips that never happened and paying kickbacks to induce false claims, with accusations spanning millions of dollars and years of activity.
Federal authorities announced indictments this week in Central Islip charging Saad Aziz, 52, of New York, and Zabed Chowdhury, aka “Jared,” 49, of Lake Ronkonkoma, New York, with a string of criminal counts tied to healthcare fraud. The indictment lists conspiracy to commit healthcare fraud, health care fraud, conspiracy to defraud the United States and pay healthcare kickbacks, paying health care kickbacks, and money laundering conspiracy. Prosecutors say the alleged conduct dates from January 2019 through October 2025 and involved a company called Tri-Hamlet Taxi Inc. The defendants were previously charged by complaint and will be arraigned at a later date.
Investigators allege the pair offered and paid illegal kickbacks to Medicaid beneficiaries to secure transportation requests, often for purported methadone treatment, and then billed Medicaid for the rides. Many of those trips were allegedly never provided, and other claims were inflated by fabricating longer pickup or drop-off points so reimbursements would be higher. The scheme reportedly targeted the transportation benefit designed to get patients to critical medical care, turning that safety net into a revenue stream. Authorities say the total fraudulent billings exceeded $35 million.
Prosecutors identify a particular pattern of abuse in which beneficiaries were steered toward distant treatment centers in New York City rather than closer options on Long Island. That manipulation allowed the defendants to submit claims for long-distance trips, including more than $18 million in claims for rides exceeding 75 miles. With inflated mileage and fabricated trips in play, the indictment alleges the company submitted millions of dollars in false claims while collecting illicit proceeds. Those proceeds, according to the filing, were used to pay for lifestyles and investments.
Officials also say the defendants used the money to acquire multiple properties and homes with an aggregate value of about $6 million, and to move funds through at least 15 bank accounts. If convicted, each defendant faces up to 20 years in prison along with restitution and forfeiture of at least $35 million, including real properties tied to the scheme. The government has charged asset forfeiture and will pursue recovery of ill-gotten gains as part of the prosecution. The Criminal Section of the Office’s Long Island Division is leading the case with Assistant United States Attorney Adam R. Toporovsky handling the prosecution.
“As alleged, the defendants turned a transportation program intended to provide vulnerable Medicaid beneficiaries with access to critical medical care into a vehicle for personal enrichment,” stated United States Attorney Nocella. “By paying illegal kickbacks, billing for rides that were never provided, and inflating reimbursement claims through false information, they allegedly stole tens of millions of taxpayer dollars. It is a priority of the Office and the Administration to protect the integrity of federally funded healthcare programs and to hold accountable those who seek to profit through fraud.”
HHS-OIG and IRS agents joined local partners in the probe, with credit given to Homeland Security Investigations New York’s Homeland Security Task Force and the Office of the New York State Comptroller for investigative work. “This scheme, as alleged, reflects an egregious abuse of the Medicaid program, diverting vital healthcare dollars away from the vulnerable individuals who depend on them,” stated HHS-OIG Special Agent in Charge Gruchacz. “HHS‑OIG remains steadfast in working with our law enforcement partners to protect taxpayer funds and uphold the integrity of federally funded health care programs.”
IRS-CI leadership emphasized the broader public impact of the alleged fraud and the agency’s role in following the money. IRS-CI New York Special Agent in Charge, Chavis, Jr. stated: “This scheme took advantage of a program meant to help people get to the medical care they rely on. By gaming the system for their own benefit, the defendants didn’t just misuse taxpayer money — they made it harder for people who genuinely need support. We’re committed to protecting public funds and making sure anyone who tries to commit fraud is held responsible.”
“Medicaid’s transportation benefit exists so that vulnerable people can get the care they need. These defendants allegedly exploited that lifeline, paying kickbacks and billing for trips that never happened in order to enrich themselves at the expense of taxpayers,” stated Suffolk County District Attorney Tierney. The government has also named Paralegal Specialist Janelle Robinson and Assistant United States Attorney Madeline O’Connor as part of the prosecutorial team handling forfeiture and related matters. The indictment sets up a case that could involve extended litigation, asset recovery, and coordination across federal and state agencies.
