First Assistant United States Attorney Sarcone Announces Ten Capital Region Actions: Five Arrests and Civil Settlements Involving Five Parties

ALBANY, NEW YORK - Today, First Assistant United States Attorney John A. Sarcone III announced criminal charges against five defendants and civil health care fraud and controlled substances settlements with five defendants. The charges filed in federal court are part of the Department of Justice's 2026 National Health Care Fraud Takedown.

"Today's announcement should put all fraudsters on notice," said First Assistant U.S. Attorney John A. Sarcone III. "Those who enrich themselves through stealing from the hardworking American taxpayers will be relentlessly investigated, prosecuted, and held accountable to the highest standard under the law. Together our partner agencies with the full support of the federal government, will use every available tool to identify fraud, dismantle criminal schemes, and recover taxpayer dollars. Health care fraud is not a victimless crime, every fraudulent claim submitted, every false bill paid, and every scheme designed to exploit our system steals from the taxpayers and exploits the integrity of programs that millions depend upon."

The charges announced today by First Assistant United States Attorney Sarcone are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today's Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI's Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor's offices to corporate boardrooms.

Today's coordinated enforcement action involves a whole-of-government approach, including:

• Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
• 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General ("HHS-OIG") under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
• Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
• 928 administrative cases by the Drug Enforcement Agency (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.

The following individuals were charged in the Northern District of New York:

• Joseph Carl, 55, of Clifton Park, New York, and Randolph Ekstrom, a/k/a "Randy," 48, of Canajoharie, New York, were charged by superseding indictment with one count of conspiracy to commit wire fraud and health care fraud and one count of conspiracy to pay healthcare kickbacks. As alleged in the superseding indictment, Carl and Ekstrom managed Carl's Cab, a DBA entity owned by Carl, that was enrolled as a Medicaid transportation provider in New York State from at least January 1, 2020 through March 31, 2025. The defendants are charged with paying Medicaid recipients cash and other things of value in exchange for using Carl's Cab to transport them to medical appointments, including methadone treatment facilities. The superseding indictment alleges the defendants fraudulently obtained $4,296,374.02 in Medicaid reimbursements paid to Carl's Cab over the time-period of January 1, 2020 through March 31, 2025.
• Muhammad Zishan, a/k/a "Sean," a/k/a "Shaun," a/k/a "Shawn," 47, of Glens Falls, New York, Madiha Javed, a/k/a "Maddie," 34, of Glens Falls, New York, and Ghazali Shaikh, 21, of Latham, New York, were charged by superseding indictment with one count of conspiracy to commit wire fraud and health care fraud and Zishan and Javed were charged with one count of conspiracy to pay health care kickbacks. As alleged in the superseding indictment, Zishan, Javed, and Shaikh managed Latham Taxi Inc., which was enrolled as a Medicaid transportation provider in New York State from at least January 1, 2020 through February 28, 2025. The superseding indictment alleges Zishan and Javed conspired to pay Medicaid recipients cash, controlled substances, and other things of value in exchange for using Latham Taxi Inc. to transport them to medical appointments, including methadone treatment facilities. In addition, all three defendants are charged with conspiring to falsify trip data to fraudulently obtain Medicaid reimbursement by overbilling for services provided and billing for services that were not provided at all. The superseding indictment alleges the defendants fraudulently obtained $666,281.42 in Medicaid reimbursements paid to Latham Taxi Inc. over the time-period of January 1, 2020 through February 28, 2025. According to statements made by prosecutors at Shaikh's arraignment on June 22, 2026, federal agents seized over $30,000 in cash and precious metals they contend are proceeds of the offenses during the execution of a search warrant at Shaikh's residence.

The following parties entered civil settlement agreements in the Northern District of New York:

• Douglas C. Cline, M.D. P.C., doing business as Chronic Pain Management, formerly located in Queensbury, New York, its owner Douglas C. Cline, M.D., 67, of Saratoga Springs, New York, and nurse practitioner Laurie McKenna, 64, of Bolton Landing, New York, reached a civil settlement to pay $500,000 to resolve allegations that they prescribed high-dose opioids and other controlled substances to patients without adequate medical oversight, tied continued access to prescriptions to recurring cash payments, and that Dr. Cline fraudulently transferred assets to avoid payment of a potential judgment.
• Aptihealth Inc. and Aptihealth Medical, PLLC (collectively, "Aptihealth"), a telehealth behavioral health provider located in Clifton Park, New York, reached a civil settlement to pay $300,000 to the United States and the State of New York to resolve allegations that the company billed Medicare and Medicaid for services that were not rendered or not supported by adequate documentation, improperly billed administrative tasks as reimbursable medical services, provided gift cards to induce recipients to receive services, and failed to maintain an effective compliance program as required by New York law.

"I want to thank our partners for their continued efforts. We look forward to bringing more cases like this as we work together to protect the integrity of our healthcare system" said First Assistant U.S. Attorney Sarcone. "Although the New York State Attorney General's Medicaid Fraud Control Unit (MFCU) was not involved in the cases announced today, they have a substantial responsibility ahead of them. New York's Medicaid program now exceeds $100 billion, with more than half funded by federal taxpayers. Safeguarding those dollars requires an all of government approach and strong coordination across federal and state enforcement partners. I stand ready to work alongside them, bringing together both state and federal resources to protect the integrity of the program."

The cases are being prosecuted by the Health Care Fraud Unit's National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys' Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General's Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.

Descriptions of each case involved in today's enforcement action are available on the Department's website here.

The Northern District of New York, in particular, worked with the Department's Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); FBI; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Office of the New York State Comptroller; and the New York State Office of the Medicaid Inspector General.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.