NEW WINDSOR, N.Y. — A New Windsor couple faces felony grand larceny charges after allegedly defrauding Medicaid of nearly $3 million through fake medical transport trips, marking what Orange County officials call the largest Medicaid fraud case ever prosecuted locally.
Husband and wife Rohail Raja, 45, and Sharma Alam, 45, pleaded not guilty this week following a state audit that uncovered fraudulent billing patterns at their transportation companies from 2020 to 2024, according to the New York State Office of the Comptroller.
Prosecutors allege the couple billed Medicaid for transporting patients to appointments that never occurred, netting $2,008,000 in excess payments. They are also accused of claiming separate trips for patients who were actually transported together, adding $895,000 in fraudulent funds.
State audits occasionally trigger criminal charges for Medicaid fraud, but few involve sums this large. Recent cases in New York have included Schenectady County and Queens, with companies charged for defrauding Medicaid of millions. Over the summer, the state attorney general secured settlements totaling more than $13 million from 16 companies for overbilling Medicaid.
The New Windsor couple’s companies, authorized by the state Department of Health, were tasked with transporting Medicaid recipients to approved medical providers. Auditors compared company claims to Medicaid records during the investigation, and law enforcement searched the couple’s home in New Windsor.
Orange County Sheriff Paul Arteta commended the auditors and the county task force investigating white-collar crime, stating, “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.”
Raja was in custody at the Orange County Jail as of Friday morning, while Alam was not listed in jail records. Both are scheduled to appear in New Windsor Town Court on Nov. 5.
