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New York Attorney General Letitia James announced Thursday, Dec. 5, that five have pleaded guilty to stealing more than $4.4 million from New York’s Medicaid program through fake billing, illegal kickbacks, and engaging in money laundering and other fraudulent schemes to conceal their crimes.
Muhammad Rizwan Khan, 38, Muhammad Usman Khan, 40, and Farhan Khan, 29, all of Orange County, and their related companies pleaded guilty on Wednesday, Dec. 4, in Orange County Court for stealing over $3.8 million from Medicaid.
As a result, Muhammad Rizwan Khan and Farhan Khan will be sentenced to two and one-third to seven years and one to three years in state prison. Muhammad Usman Khan will be sentenced to six months in jail concurrent with five years of probation. The Khans will also pay Medicaid $2 million in restitution for their crimes.
In a separate case, John Gouzos, 48, of Nassau County, Richard Sehl, 57, of Saratoga County, and their companies pleaded guilty in November in Rensselaer County Court for stealing over $650,000 from Medicaid. Gouzos will be sentenced to six months in jail concurrent with five years of probation, and Sehl will be sentenced to a five-year term of probation.
All operated schemes in which they illegally overcharged Medicaid for transportation services. In addition, all engaged in money laundering using shell companies they operated.
Each defendant will also be barred from providing services in all government-funded health programs, including Medicaid and Medicare, as a result of their convictions.
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