Insurance Fraud NEWS
New York med transport firm to repay $900K for fake trips
October 16, 2018, Buffalo, NY
A transportation company in Buffalo charged with Medicaid fraud will pay back $900,497 to the state in restitution.
The announcement came Tuesday in tandem with the sentencing of Wossen Ambaye, president of 716 Transportation, who stole $1.2 million by charging the government for services the company never provided.
In addition to paying restitution, Ambaye was sentenced to three years’ conditional discharge and 150 hours of community service by Erie County Supreme Court Judge John Michalski while the company paid an additional fine of $10,000.
Last month, driver Haimid Thompson, a.k.a. Mookie, was sentenced in the case for stealing over $7,500 from the Medicaid program. As a second felony offender, Thompson was sentenced to two to four years in prison with a possibility of parole and is required to pay restitution of $23,598 to the state.
New York Attorney General Barbara Underwood said in a statement the state has zero tolerance for Medicaid fraud.
“New Yorkers fund – and rely on – these programs to adequately provide resources to the vulnerable citizens that need them,” she said. “My office will continue to root out Medicaid fraud wherever it occurs.”
Ambaye pleaded guilty this summer in the case after falsely representing that transportation services had been provided in accordance with Medicaid rules and regulations when he knew that services billed were never provided or were provided in direct violation of the rules and regulations.
Source: Buffalo Business First