Comptroller DiNapoli and District Attorney Hoovler Announce Arrests in Investigation Into Fraudulent Billing by Medicaid Transportation Providers Accused of Stealing $2.9 Million
New York State Comptroller Thomas P. DiNapoli and Orange County District Attorney David M. Hoovler announced that on Thursday, October 30, 2025, Rohail Raja, age 45, and his wife, Sharma Alam, age 45, both of the Town of New Windsor, were arrested and charged with Grand Larceny in the First Degree in connection with a scheme to defraud the New York State Medicaid program of millions of dollars.
Raja and Alam were arraigned in the Centralized Arraignment Part on a felony complaint which alleges that between February 1, 2020 and August 30, 2024, in the Town of New Windsor, and elsewhere in the State of New York, the defendants stole over $2,900,000.00 in Medicaid funds from the New York State Department of Health. The thefts are alleged to have occurred through fraudulent claims submitted by two Medicaid transportation companies owned by the defendants. The complaint alleges that the defendants acted in concert with each other in stealing the funds through two fraudulent billing schemes.
A joint investigation was conducted by the Orange County District Attorney’s Office, the Office of the New York State Comptroller, the Orange County Sheriff’s Office, and the Orange County White Collar Crimes Taskforce. They were assisted in the investigation by the New York State Office of the Medicaid Inspector General and the Hudson Valley Crime Analysis Center. Based upon information developed during the investigation, the District Attorney’s Office applied for a search warrant which was executed at the defendants’ Town of New Windsor residence by investigators of the Orange County District Attorney’s Office and Orange County Sheriff’s Office, who were accompanied by investigators from the Office of the State Comptroller.
As alleged, each defendant is the owner of record of a company which is authorized to act as a Medicaid transportation company. These two companies are paid by the New York State Department of Health to provide transportation to Medicaid recipients to go to and from approved Medicaid medical service providers.
During the investigation, claims for payments submitted by the defendants’ companies were compared to records from the Medicaid medical service providers named in the claims. An auditor of the Office of the New York State Comptroller discovered that the New York State Department of Health had paid the defendants in excess of $2,008,000 for ostensibly transporting Medicaid recipients to Medicaid health care providers on dates and time when the provider records show that no such visits occurred.
In addition, a review of the claims submitted by the defendants’ companies during that same time period disclosed that the defendants’ companies were fraudulently submitting claims to the New York State Department of Health which falsely indicated that the companies had transported Medicaid recipients separately to medical appointments, when in reality they had transported multiple Medicaid recipients in one trip. It is alleged that the defendants fraudulently billed the Department of Health by claiming that the transport for each Medicaid recipient was a separate trip. As a result of those false claims the defendants’ companies received more than $895,000 than they were entitled to.
The investigation revealed that through these two schemes the defendants stole in excess of $2,900,000 from the New York State Medicaid Program. The investigation is ongoing and anyone with information is urged to contact the Orange County District Attorney’s Office.
Both defendants were remanded to the Orange County Jail in lieu of bail set in the amount of one million ($1,000,000.00) cash, or five million ($5,000,000.00) dollars partially secured bond, or ten million ($10,000,000.00) dollars unsecured bond.
The defendants are next scheduled to appear in the Town of New Windsor Justice Court on November 5, 2025.
District Attorney David M. Hoovler said, “This is the largest Medicaid fraud scheme ever prosecuted by the Orange County District Attorney’s Office. I am grateful to Comptroller DiNapoli and his staff for partnering with the District Attorney’s Office and the Orange County White Collar Crimes Taskforce on this important investigation. The work of the investigators and auditors of the Office of State Comptroller was crucial to this investigation. I also thank Sheriff Arteta for continuing to partner with my office, and the other members of the White Collar Taskforce for their dedication to investigate complex financial crimes.”
New York State Comptroller Thomas P. DiNapoli said, “These defendants allegedly systematically schemed to steal nearly 3 million dollars in much needed funds for the health care of deserving New Yorkers,” said DiNapoli. “Thanks to my partnership with District Attorney Hoovler they are now being held accountable. My office will continue to work with our law enforcement partners across the state to fight Medicaid fraud and abuse and protect our Medicaid system.”
Sheriff Arteta said “This case is a prime example of why the Orange County Sheriff’s Office and Orange County DA’s office created the White Collar Crime Task Force. These investigations ensure that we hold the people taking advantage of public funding accountable. The aftermath of these crimes impacts our community in many ways. We need to prevent fraudulent claims from causing a burden on our Medicaid system so that the funding is there for those who need it. A job well done by everyone involved.”
The case is being prosecuted by Assistant District Attorney Amanda Bettinelli and Chief Assistant District Attorney Christopher P. Borek.
A criminal charge is merely an allegation that a defendant has committed a violation of the criminal law, and it is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the State of New York’s burden to prove guilt beyond a reasonable doubt.
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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at investigations@osc.ny.gov, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.
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