Muhammad W. Khan Faces A Decade and A Half in Prison Time after Being Convicted of Massive Fraud

A New York medical transportation company owner has been sentenced to three to nine years in state prison for stealing more than $1.1 million from Medicaid. Muhammad W. Khan, the owner of Ulster County-based MAK Limo, was also ordered to pay full restitution. Investigators said his company billed for rides that never happened, charged separately for passengers who traveled together, and paid patients to help sustain the scheme.

The sentence, announced September 25th by State Comptroller Thomas P. DiNapoli and Ulster County District Attorney Emmanuel C. Nneji, followed Khan’s guilty plea in March. The case was heard in Ulster County Court after a joint investigation by the comptroller’s office and local prosecutors. The companies at the center of the investigation were enrolled in Medicaid to provide transportation for patients traveling to medical appointments.

Medicaid transportation providers can bill the program for eligible trips. New York’s rules require advance authorization for group rides, and an approved provider can charge for a group’s mileage only once. Investigators said Khan instead submitted individual claims for passengers who had ridden together. They also found claims for trips that were never provided, creating two ways to collect money beyond what the program allowed.

In its sentencing announcement, the comptroller’s office said the conduct ran from November 2020 through August 2024. Investigators also found that patients received kickbacks to use MAK Limo and help facilitate the fraud. DiNapoli said Khan “falsified bills and bribed patients to deprive the Medicaid program of over a million dollars.” The restitution order requires repayment of the stolen funds.

Khan pleaded guilty to grand larceny in March. At the time, officials said he faced up to 15 years in prison and was expected to pay $1.1 million in restitution. The March announcement scheduled sentencing for September 9th, however the later announcement reports the sentence on September 25th. His actual prison term is three to nine years, rather than the possible 15-year sentence described when he entered his plea.

The investigation became public in June 2025, when Khan and his father were arrested. In the comptroller’s initial announcement, prosecutors accused Muhammad W. Khan of taking $1,103,358. The charges against him at that stage included first-degree grand larceny, health care fraud, false filing, falsifying business records, and prohibited practices under social services law. The U.S. Department of Health and Human Services’ Office of Inspector General assisted with the investigation.

His father, Mohammad A. Khan, owns a separate company called Atlas Limo. Authorities charged him with second-degree grand larceny and accused him of stealing $111,548. Those allegations against the father are separate from Muhammad W. Khan’s guilty plea and prison sentence. The comptroller’s office said the two companies together received more than $5.8 million in Medicaid payments from New York. That number represents their combined payments, not the amount established as stolen.

Nneji credited investigators and lawyers across the two offices for uncovering the scheme and bringing the case to court. The district attorney described their work as a joint effort to hold the operation accountable. He said he was grateful for DiNapoli’s commitment to the case and to “recovering public funds stolen by the defendant.”