3 People Face Charges Over Alleged Medicaid Scam in Orange County

NEW WINDSOR, N.Y.—Three people in Orange County were arraigned and indicted for allegedly stealing $3.5 million from the state between 2020 and 2024 using Medicaid-contracted transportation companies.

Rohail Raja, 45, and his wife, Sharma Alam, 45, of the Town of New Windsor, were arraigned on charges of grand larceny in the first degree and conspiracy in the fourth degree on Nov. 10. Ari Manojkumar, 33, of the Town of Highland was arraigned on the same charges on Nov. 18, according to an Orange County District Attorney statement.

Two companies linked to the alleged fraud scheme—Unique Class Limo Inc. and SNR Limo Inc.—were also arraigned, facing first- and second-degree grand larceny charges, respectively.

“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,” the statement said. “It is alleged that the defendants acted in concert with each other in stealing the funds through two fraudulent billing schemes.”

The defendants allegedly stole more than $3.5 million in Medicaid funds from the Department of Health through fraudulent claims and fees submitted by the two transportation companies they owned. Manojkumar was involved as the manager of the two companies and allegedly helped move money around for the fraud schemes.

During investigations, an auditor at the State Comptroller’s office found that the two companies were being paid to transport Medicaid recipients to providers, even though records showed no such visits were made, according to the statement.

The companies also allegedly falsely reported trips they did make. While they would transport multiple people at a time, they would allegedly submit for payment as though each person had been on a separate trip.

“This investigation uncovered broad and blatant fraud that undermines the critical services these defendants purported to provide,” District Attorney David M. Hoovler said in the statement.

A joint investigation into the matter was made by the Orange County District Attorney’s Office, the Office of the New York State Comptroller, the Orange County Sheriff’s Office, the Orange County Drug Taskforce, and the Orange County White Collar Crimes Taskforce.

Both Raja and Alam are in the Orange County Jail, having chosen not to pay the $1 million cash bail, the $5 million fully secured bond, or the $10 million partially secured bond. Manojkumar was sent to the county jail without bail.