Latham Taxi Operators and Employees Charged in $660,000 Medicaid Fraud and Kickback Scheme

ALBANY, NEW YORK - A federal grand jury has returned a superseding indictment charging Muhammad Zishan, a/k/a "Sean," a/k/a "Shaun," a/k/a "Shawn," age 48, of Albany County, New York; Madiha Javed, a/k/a "Maddie," age 34, of Rensselaer County, New York; and Ghazali Shaikh, age 20, of Warren County, New York, with conspiracy to commit health care fraud and wire fraud and conspiracy to pay health care kickbacks in connection with Medicaid transportation services. The charges filed in federal court are part of the Department of Justice's 2026 National Health Care Fraud Takedown.

The announcement was made by First Assistant United States Attorney John A. Sarcone III, Federal Bureau of Investigation (FBI) Special Agent in Charge Craig L. Tremaroli, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge Naomi Gruchacz, and New York State Comptroller Thomas P. DiNapoli. This prosecution is part of the Trump Administration's Task Force to Eliminate Fraud.

"The superseding indictment alleges a scheme grounded in false claims, illegal kickbacks, and inducements used to generate Medicaid reimbursements," said First Assistant United States Attorney John A. Sarcone III. "If proven, the conduct reflects a deliberate effort to drain public funds through fraud and to distort a program designed to serve those in need across New York. My office will continue to target those who weaponize federally funded health care systems for private gain and to safeguard taxpayer dollars from abuse."

"HHS-OIG works tirelessly with our law enforcement partners to ensure that individuals are held accountable if they attempt to exploit federal health care programs for their own greed," stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "It is alleged in this case that the defendants offered illegal kickbacks and billed Medicaid improperly for millions of dollars, which can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care."

FBI Special Agent in Charge Craig L. Tremaroli said, "The allegations against these defendants are infuriating. Vital government programs like Medicaid are designed to help people access the care they need. They are not designed so criminals can extort taxpayer dollars and line their own pockets. The FBI will continue to work with our partners to investigate and bring to justice any criminal looking to defraud our invaluable government programs."

According to the superseding indictment, between approximately January 2020 and February 2025, the defendants operated and were associated with Latham Taxi Inc., a Medicaid-enrolled transportation provider. Medicaid is a federal and state health care program that reimburses providers for medically necessary services, including non-emergency transportation to medical appointments.

The superseding indictment alleges that the defendants engaged in a scheme to defraud Medicaid by submitting and causing the submission of claims for transportation services that were not provided, not medically necessary, or improperly inflated. The alleged fraudulent billing included claims for "ghost rides," claims for trips in which Medicaid recipients were not transported or not seen by medical providers and claims that improperly increased reimbursement by treating group transportation as multiple individual trips.

The superseding indictment further alleges that the defendants provided Medicaid recipients with cash, rent abatement, controlled substances, and other things of value to induce them to use Latham Taxi Inc. as their transportation provider. These payments were intended to generate additional Medicaid reimbursements and to sustain the fraudulent billing scheme.

As alleged, the defendants caused the submission of false and fraudulent claims through the New York State Department of Health, which processed Medicaid reimbursements through systems located in Rensselaer County and transmitted payments through interstate wire communications.

The alleged conduct resulted in the fraudulent receipt of at least $666,281.42 in Medicaid funds.

Zishan, Javed, and Shaikh are charged with conspiracy to commit wire fraud and health care fraud, which carries a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. The defendants are also charged with conspiracy to pay health care kickbacks, which carries a maximum sentence of five years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant's sentence is imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.

The defendants were arraigned yesterday in Albany, New York, before United States Magistrate Judge Paul J. Evangelista. Zishan was detained pending trial, Javed was detained pending a detention hearing scheduled for June 24, 2026, and Ghazali was released on conditions pending trial. The trial will be held before Senior United States District Judge Frederick J. Scullin

The charges in the superseding indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.

The Northern District of New York worked with the Department's Health Care Fraud Unit of the Fraud Division, together with the FBI, HHS-OIG, and the New York State Comptroller's Office, with additional assistance from the New York State Office of the Medicaid Inspector General.

Assistant United States Attorneys Benjamin S. Clark and Adam J. Katz are prosecuting the case.