Owner and Employee of Schenectady Medical Transport Charged with Stealing $700K from Medicaid

August 28, 2024

Updated: August 28, 2024

SCHENECTADY — A shocking revelation has ⁢emerged‌ from Schenectady, where the proprietor of a medical transportation firm, ⁢Sublime Medical Transportation, and an employee have been apprehended ‌on charges of defrauding the state’s Medicaid program of over $700,000.

The owner, Muhammad Adnan Saeed, and his employee, Heather Smith, ‍are alleged to have manipulated ‍Medicaid bills by falsely asserting‍ that group rides provided to clients were individual rides. This deceitful practice enabled⁤ the company to unlawfully claim mileage payments for each individual client in the group.

Furthermore,‍ Saeed is facing⁢ additional charges for purportedly pilfering over $60,000 from the state’s unemployment insurance program, which he⁢ was illicitly collecting while simultaneously operating the Dorwaldt Boulevard transportation company.

Saeed, 40, was brought before Judge Mark Caruso in Schenectady County Court on Friday, where he was indicted on⁢ charges of‌ health care fraud, grand ‌larceny, money⁢ laundering, medical assistance⁤ provider ‌prohibited practices, and falsifying business records. His next court appearance is scheduled for Sept. 6.

State Comptroller Thomas ‍DiNapoli expressed his outrage in a statement, saying, “Muhammad Adnan Saeed and Heather Smith allegedly conspired to⁣ defraud the Medicaid program, diverting funds intended for healthcare services ‍for needy New Yorkers into their own pockets. Medicaid is an essential program, and my office will persist in collaborating with law enforcement to bring those who attempt to defraud it ‍to justice. I extend my gratitude to Schenectady County District Attorney [Robert] Carney ⁣and Schenectady County ⁣Sheriff [Dominic] Dagostino for their partnership in safeguarding the Medicaid program.”

Smith, 46, was arraigned on a charge of grand larceny‍ before Caruso in Schenectady City Court‌ on Aug. 16. She is due back in court on Sept. 25.

Saeed held the position of president⁤ at Sublime Medical Transportation, a‌ company enrolled in the Medicaid program ‍as ‌a participating⁣ transportation provider for program beneficiaries. ⁢Smith⁢ was the supervising driver for the company.

According to Medicaid regulations, patients are allowed to use transportation services for legitimate appointments, ‍which are then billed to Medicaid by the provider. Group rides, however, require prior ⁣authorization.

A joint investigation ‍between the ⁤county and state concluded that Saeed and Smith allegedly defrauded the Medicaid program by claiming payment for individual rides over a four-year period, thereby fraudulently increasing the company’s earnings.

The investigation also found ‍that patients were allegedly given kickbacks by Saeed and Smith to use the company’s services.

District Attorney Carney expressed his dismay in a ‌statement, saying, “These defendants exploited a crucial⁤ government program designed to ensure our vulnerable, low-income population receives the medical care⁣ they need. Worse still, the defendants’ fraud was committed on the backs of⁣ people struggling with addiction. Instead of helping them get the treatment they need, the defendants used them to cheat Medicaid and paid them cash kickbacks, further enabling their addiction. They inflated their profits by‍ transporting patients from Schenectady to Amsterdam rather than down the street and from ⁣Oneonta⁢ to Utica. Mr. Saeed then sent hundreds of thousands of dollars to his family overseas⁢ to ‍conceal his fraudulent earnings.”

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