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Federal prosecutors in the Eastern District of New York filed an indictment this week that reads like a bad crime drama — only this one allegedly stole more than $35 million from taxpayers instead of stealing a car. The indictment names Saad Aziz and Zabed Chowdhury, owners of Tri‑Hamlet Taxi, and accuses them of running an ambulette scam that bilked Medicaid for years. This case is another reminder that fraud eats away at programs meant to help the vulnerable.
What prosecutors say
The indictment, filed July 1, 2026, charges Aziz and Chowdhury with conspiracy to commit healthcare fraud, paying kickbacks, money‑laundering conspiracy, and related counts. Prosecutors say the scheme ran from about January 2019 through October 2025 and involved more than $35 million in fraudulent Medicaid claims — including more than $18 million for trips billed over 75 miles. U.S. Attorney Joseph Nocella, Jr. said the defendants “turned a transportation program intended to provide vulnerable Medicaid beneficiaries with access to critical medical care into a vehicle for personal enrichment.”
How the scheme allegedly worked
Kickbacks, fake rides and longer trips
The indictment says the pair paid cash kickbacks to Medicaid beneficiaries to request rides from Tri‑Hamlet Taxi, often claiming the trips were for methadone treatment. Video and bank records allegedly show envelopes of cash changing hands and undercover officers billed for rides they never took. Prosecutors also allege the defendants directed false pickup or drop‑off addresses so they could bill longer, higher‑reimbursed trips — then used the illicit proceeds to buy multiple properties worth about $6 million.
Next steps in court
The arraignment is scheduled for early July and the government has asked the court for a substantial bond, saying the evidence is strong. If convicted, each defendant faces up to 20 years in prison and steep restitution and forfeiture — at least $35 million and several properties and bank accounts. HHS‑OIG Special Agent in Charge Naomi Gruchacz called the scheme “an egregious abuse of the Medicaid program,” and IRS‑CI Special Agent in Charge Harry T. Chavis, Jr. vowed to hold fraudsters accountable.
Why this case matters
This indictment isn’t just about two men and a taxi company. It’s about a pattern: when bad actors exploit Medicaid’s transportation benefit, real people lose access to care and taxpayers foot the bill. Conservatives who care about both helping the vulnerable and protecting taxpayers should welcome tough enforcement. Let’s hope prosecutors follow through and the courts strip the profit from anyone who thinks ripping off Medicaid is a business plan — and send a clear message that exploiting vulnerable Americans is not a get‑rich‑quick scheme.
