Federal prosecutors in the Eastern District of New York have indicted Saad Aziz and Zabed Chowdhury for allegedly defrauding Medicaid of more than $35 million through their Shirley-based ambulette service, Tri-Hamlet Taxi Inc. The pair face multiple charges, including healthcare fraud and money laundering, stemming from a scheme that involved billing for non-existent rides and inflating costs between January 2019 and October 2025.
How the Alleged Medicaid Fraud Scheme Operated
According to the U.S. Attorney’s Office for the Eastern District of New York, the defendants utilized a system to bill Medicaid for rides that were never provided. Aziz, the owner and operator of Tri-Hamlet Taxi, and Chowdhury, a manager, allegedly paid kickbacks to Medicaid recipients to request transportation, specifically targeting those seeking methadone treatment.
Court filings reveal that the operators instructed beneficiaries to provide false pickup or drop-off addresses to generate higher billing rates. In many instances, the company billed for trips exceeding 75 miles, totaling over $18 million for long-distance claims. Evidence presented in a court filing includes video footage of the defendants allegedly handing envelopes containing cash to undercover officers while instructing them to request rides to distant clinics from fake locations.
Prosecutors allege that the proceeds from the scheme were used to fund the personal lifestyles of the defendants, including the purchase of multiple homes and investment properties valued at approximately $6 million.
What Legal Consequences Do the Defendants Face?
If convicted, Aziz and Chowdhury face up to 20 years in federal prison. Beyond incarceration, the government is seeking forfeiture and restitution of at least $35 million. This includes the seizure of 15 bank accounts and multiple properties.
Attorneys for the defendants have stated their intent to plead not guilty. Kevin Keating, representing Aziz, described his client as having an “impeccable reputation.” Evan Sugar, counsel for Chowdhury, emphasized that the indictment is not evidence of guilt and noted that his client is “entitled to the presumption of innocence.”
Future Trends in Healthcare Fraud Enforcement
The case of Tri-Hamlet Taxi underscores a focus by federal authorities on the transportation sector of the Medicaid program.
How Are Authorities Monitoring Transportation Claims?
Regulators are scrutinizing medical transportation claims. Because Medicaid allows for reimbursement based on distance, companies that fabricate routes to distant facilities are a target for federal investigators.
Healthcare providers and transportation services often undergo periodic audits.
Frequently Asked Questions
What specific charges were filed against the operators of Tri-Hamlet Taxi?
The defendants were indicted on charges of money laundering, paying healthcare kickbacks, conspiracy to commit healthcare fraud, and healthcare fraud.
How much money did the government allege was defrauded?
Federal prosecutors allege that the defendants billed Medicaid for more than $35 million in fraudulent or inflated transportation claims.
What is the potential prison time for these charges?
If convicted, the defendants face up to 20 years in federal prison, in addition to restitution and the forfeiture of assets.
Where can I read more about the court filings?
Official documents and press releases regarding the case are available through the U.S. Attorney’s Office for the Eastern District of New York website.
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