New York authorities have revealed that two brothers, Jawad and Junaid Choudhary, have pleaded guilty to charges of grand larceny in the second degree for utilizing three Medicaid transportation companies to systematically defraud the program out of over $1.6 million in taxpayer dollars. The brothers, both in their mid-40s, hail from Clifton Park, and are now required to pay full restitution.
“Jawad and Junaid Choudhary sought to defraud New York’s Medicaid system out of over $1.6 million by billing for non-existent services, inflating charges, and paying kickbacks,” New York State Comptroller Thomas P. DiNapoli said. “They have now been held accountable for their crimes. Medicaid is a vital program that millions of New Yorkers rely on to get the health care they need.”
“My office will continue to work with our law enforcement partners to protect New York’s program from those who try to abuse the system. I thank District Attorney Kindlon, the State Police and the Office of the Medicaid Inspector General for their continued partnership in fighting Medicaid fraud,” DiNapoli went on to add.
“The defendants in this case were bilking the state and lying about services provided to those who truly rely on Medicaid funding to live a healthy life,” Albany County District Attorney Lee C. Kindlon said, according to a press release from the New York state government. Kindlon then gave praise to the others who worked on the case.
“I applaud the work of the Office of the New York State Comptroller, the Medicaid Inspector General, New York State Police and our Financial Crimes Bureau, who will always work together tirelessly to detect, investigate, and dismantle these health care fraud schemes that drain critical resources from programs intended for those who need medical care the most,” he said.
“These two individuals perpetuated a dishonest scheme to financially take advantage of medical transportation people rely on. Financial fraud of any kind is a serious crime that causes all those victimized far-reaching and devastating hardship. We will continue to work with our law enforcement partners to end these illegal acts and hold accountable those who think they can get away with them. I thank the Comptroller’s Office, Albany County District Attorney’s Office, and Office of the Medicaid Inspector General for their continued partnerships,” New York State Police Superintendent Steven G. James explained.
Acting Medicaid Inspector General Frank T. Walsh said that the operation that busted the two brothers sends a clear message to others who are thinking of using the Medicaid program to perpetrate fraud and make themselves wealthy off the backs of hard-working Americans, that those who engage in such acts will be held accountable.
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“This joint effort sends an unmistakable message to those who seek to line their pockets by defrauding the Medicaid program: You will be held accountable,” Walsh stated. “Medicaid fraud threatens the health and safety of beneficiaries, wastes taxpayer dollars, and drains essential resources from the health care delivery system.”
Junaid Choudhary, the owner of A1 Rices, submitted well over a million dollars in false claims to the Medicaid program. His brother, Jawad Choudhary, owner of NY Jet Transport, submitted over $400,000 in false claims. The claims were submitted between 2021 through 2025. The brothers committed fraud by claiming payment for individual rides which were in reality unauthorized group rides, which led to a sizable boost in the amount the companies were paid.
The Choudharys also provided patients with kickbacks for their participation in the fraud. The money they siphoned off from the program was used to pay on mortgages and credit card payments, along with cash withdrawals, and other personal and business bank accounts. Both defendants pleaded guilty and are due back in court on December 14, 2026, to receive their sentences.