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June 2, 2018

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• EDITION •

More details \ emerge in Medicaid conspiracy scheme Medical transport companies hauled in nearly $10 million in two years By Pete DeMola EDITOR

PLATTSBURGH | A sixth defendant has been arraigned on federal conspiracy charges related to a sweeping Medicaid fraud scheme. Arshad Nazir was charged last Thursday with conspiracy to commit health care fraud and offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries. Following his appearance at the Northern District of New York United States District Court in Plattsburgh, Nazir was remanded into the custody of state police, and is expected to face additional charges as part of the joint state and federal probe of what authorities contend is an industry plagued with corruption and abuse.

Defendants arrested as part of a criminal probe into Medicaid fraud appeared at Northern District of New York United States District Court in Plattsburgh on Thursday. Photo by Pete DeMola Details on potential state charges were not immediately available. Ten medical taxi providers across the eastern Adirondacks have been implicated in the scheme. Nazir, owner of Avalanche Taxi in Ticonderoga, is the 13th defendant to face criminal charges.

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For the suspects, many of whom have associations with convenience stores and other businesses across the region, linking into the state’s Medicaid transport system via startup taxi operations proved to be extremely lucrative. Since 2015, Adirondack Taxi & Limo, Ti Taxi and Green

Mountain Medical Transportation have collectively received $7.3 million in taxpayer-funded payments, according to the FBI, and Nazir’s indictment brings the total number to $9.7 million. It’s unclear how many of those were legitimate medical trips, but the funds pouring in from the state Department of Health (DOH) constituted all but a small percentage of their profits. The FBI cited intercepted phone discussions between Nazir and Adirondack Taxi & Limo owner Khalid Chadder discussing in their native Punjabi what appeared to be a systemic payment and gift structure designed for drivers to convince passengers to retain their services to transport them to what were ostensibly medical appointments across » Fraud Cont. on pg. 14

Town wants action on burned building Building owner says demolition ready to start By Lohr McKinstry STA FF W RITER

The Moriah Town Council wants the burned-out Cunningham Building on Main Street removed as soon as possible. Photo by Lohr McKinstry

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MORIAH | The Town of Moriah is threatening legal action to remove the burned-out building at Main Street and St. Patrick’s Place in Port Henry. The two-story brick building owned by Greg Cunningham of Schroon Lake was heavily damaged by an April 4 fire, and town officials say it must be taken down. Moriah Town Supervisor Thomas Scozzafava said Cunningham stated in The Sun

that he was awarding bids to remove the top floor and seal the less-damaged first story. “We have been trying to work with the owner of the property, but ... we receive nothing but empty promises,” Scozzafava said. “We would prefer to see the owner take the responsibility for this property and do what he stated in The Sun newspaper, but again, nothing. “I have instructed our attorney for the town to commence legal actions against the owner, as this building is a threat to public safety. We have blocked off a public sidewalk, detoured traffic, converted two streets to one-way and have postponed our sidewalk replacement in this area.” John Silvestri is the town attorney. Cunningham told The Sun he’s not stalling, but is moving as fast as he can within the constraints of state regulations.


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