Bronx Firm American Base Hits with $4.8M Fine for Medicaid Fraud

New York’s Attorney General, Letitia James, has unleashed a hammer blow against Bronx-based American Base No. 1, fining the company $4,775,869.61 for its involvement in a Medicaid fraud scheme that swindled millions from the public coffers.

The firm was charged with orchestrating illegal activities to siphon off millions of dollars meant for New York’s most vulnerable citizens seeking health care. The New York Attorney General’s Office (OAG) discovered that American Base drivers exaggerated mileage, claimed impossible daily services, and billed Medicaid for patients who had never used their services or even heard of the company.

In one shocking case, an American Base driver falsely reported 96 unique trips totaling over 2,158 miles in a single day. The OAG investigation also revealed that many of the patients listed by American Base had not utilized their Medicaid taxi services nor were aware of the company’s existence. Some patients admitted to receiving kickbacks for requesting transportation from the firm.

Attorney General James emphasized the importance of this crackdown, stating, “When companies make up fake bills and exploit patients to overcharge Medicaid, they take resources away from a program that allows the most vulnerable New Yorkers to get health care.”

The OAG’s Medicaid Fraud Control Unit (MFCU) uncovered these schemes through rigorous investigations, including billing irregularities, kickback operations, and exploitation of Medicaid recipients in need of substance abuse treatment.

Today’s takedown is a clear message from the AG’s office that they are serious about protecting taxpayers and ensuring that Medicaid funds are used for their intended purpose. James vowed to continue pursuing those who undermine the healthcare system, highlighting the resolute stance against fraud in all its forms.