New York Attorney General Letitia James announced the arrest of David Moore of Tompkins County, who through his company ASAP 2, allegedly stole over $1 million from Medicaid by using fictitious billing and an illegal kickback scheme to overcharge for transportation services. For years, Moore illegally paid Medicaid recipients to use his company, and then fraudulently overcharged Medicaid for the rides he provided.
“Patients across the state depend on medical transportation providers to access the care they need,” said Attorney General James. “David Moore exploited his role to steal from New York’s Medicaid program, putting vulnerable New Yorkers at risk and undermining honest businesses that provide essential transportation services. My office will continue to put a stop to all those who try to illegally profit by abusing our health care system.”
Medicaid recipients who lack access to transportation can use approved transportation providers to travel to and from covered medical services. These providers receive reimbursements from Medicaid for the rides they provide. From January 2019 to August 2023, Moore allegedly paid Medicaid recipients to use his service, submitted claims for fictitious trips, and significantly inflated the mileage of trips that did happen to overcharge Medicaid by over $1 million. For example, Moore submitted claims for fictitious trips by allegedly billing trips with multiple passengers as if each passenger was in a separate vehicle, greatly increasing the fees for a single trip.
Moore also allegedly paid kickbacks to Medicaid patients to use his services. This allowed him to illegally recruit customers in order to fraudulently bill Medicaid for more rides, and undermined the businesses of other transportation providers in the Southern Tier. Moore made off-the-books payments to Medicaid recipients – some of whom were suffering from substance use disorder – using Cash App and Venmo to incentivize them to take rides with his service.
Moore, who was arrested on June 21, was charged with Grand Larceny in the First Degree, two counts of Health Care Fraud in the Second Degree, and three counts of Medical Assistance Provider Prohibited Practices. The Grand Larceny charge carries a maximum sentence of up to 25 years in state prison.
The charges filed in this case are accusations. The defendants are presumed innocent until proven guilty in a court of law.
This matter was investigated by the Attorney General’s Medicaid Fraud Control Unit (MFCU) Rochester Regional staff, including Detective Edward Alberto under the supervision of Detective Supervisor Stacey DiSanto and financial analysis by Auditor-Investigators Emily Brissette, Andrew Chadwick and William Brewer, under the supervision of Regional Chief Auditor Jamie Powers.
The criminal case is being handled by MFCU Regional Director William Gargan with assistance from MFCU Chief of Criminal Investigations Thomas O’Hanlon. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division of Criminal Justice is led by Chief Deputy Attorney General José Maldonado under the oversight of First Deputy Attorney General Jennifer Levy.
Reporting Medicaid Provider Fraud: MFCU defends the public by addressing Medicaid provider fraud and protecting nursing home residents from abuse and neglect. If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. If the situation is an emergency, please call 911.
MFCU’s total funding for federal fiscal year (FY) 2024 is $68,997,928. Of that total, 75 percent, or $51,748,448, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $17,249,480 for FY 2024, is funded by New York State.
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