Listen to the article
New Windsor Couple Charged in $2.9 Million Medicaid Fraud Scheme
A New Windsor couple faces serious charges following their arrest in connection with an elaborate scheme to defraud the New York State Medicaid program of nearly $3 million, according to officials.
Rohail Raja, 45, and his wife Sharma Alam, 45, were arrested on Thursday, October 30, 2025, and charged with Grand Larceny in the First Degree. The couple was arraigned in the City of Newburgh Court on felony complaints alleging they stole over $2.9 million from the New York State Department of Health between February 2020 and August 2024.
According to investigators, Raja and Alam operated two Medicaid transportation companies authorized to provide transit services for Medicaid recipients traveling to and from approved medical service providers. The alleged fraud involved two distinct schemes that investigators say the couple executed in concert.
The first scheme, accounting for more than $2 million in fraudulent payments, involved billing for transportation services that never occurred. An auditor from the Office of the New York State Comptroller discovered the couple had submitted claims for transporting Medicaid recipients to healthcare providers on dates when provider records showed no such visits took place.
In the second scheme, the couple allegedly falsified claims by indicating they had transported Medicaid recipients separately when they had actually transported multiple recipients in a single trip. This misrepresentation reportedly netted the defendants an additional $895,000 in improper payments.
“These defendants allegedly systematically schemed to steal nearly 3 million dollars in much needed funds for the health care of deserving New Yorkers,” said New York State Comptroller Thomas P. DiNapoli in a statement. “Thanks to my partnership with District Attorney Hoovler, they are now being held accountable.”
The investigation was conducted jointly by the Orange County District Attorney’s Office, the Office of the New York State Comptroller, the Orange County Sheriff’s Office, and the Orange County White Collar Crimes Taskforce. The New York State Office of the Medicaid Inspector General and the Hudson Valley Crime Analysis Center provided additional support.
Based on evidence gathered during the investigation, authorities executed a search warrant at the couple’s Town of New Windsor residence.
Orange County Sheriff Arteta emphasized the importance of the case: “This case is a prime example of why the Orange County Sheriff’s Office and Orange County DA’s office created the White Collar Crime Task Force. These investigations ensure that we hold the people taking advantage of public funding accountable.”
Medicaid transportation fraud has become an increasing concern for law enforcement and healthcare officials throughout New York State. The program, designed to ensure low-income patients can access necessary medical care, has been vulnerable to exploitation through falsified claims and improper billing practices.
The alleged fraud by Raja and Alam represents one of the larger Medicaid transportation fraud cases in Orange County in recent years. Such schemes typically divert critical resources from legitimate healthcare needs and increase the financial burden on taxpayers.
Both defendants were remanded to the Orange County Jail with bail set at $1 million cash, $5 million partially secured bond, or $10 million unsecured bond—unusually high amounts that reflect the severity of the charges and the substantial sums involved in the alleged fraud.
Raja and Alam are scheduled to appear in the Town of New Windsor Justice Court on November 5, 2025. The case is being prosecuted by Assistant District Attorney Amanda Bettinelli and Chief Assistant District Attorney Christopher P. Borek.
Officials noted that the investigation remains ongoing and encouraged anyone with information to contact the Orange County District Attorney’s Office.
As with all criminal cases, the charges against Raja and Alam are allegations only. Both defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
8 Comments
This is a very concerning case of Medicaid fraud. It’s troubling to see that a couple was able to steal millions through false claims for transportation services that never occurred. Taxpayer money should be used responsibly to help those in need, not line the pockets of scammers.
Absolutely. Medicaid fraud takes critical funding away from the vulnerable populations it’s meant to serve. I hope the authorities are able to recover as much of the stolen funds as possible and hold these individuals fully accountable.
Medicaid fraud is a serious issue that deserves robust investigation and prosecution. I hope the authorities are able to recover as much of the stolen funds as possible and that this case serves as a deterrent to others who might be tempted to engage in similar criminal behavior.
Agreed. Protecting the integrity of Medicaid and other social programs should be a top priority. Holding perpetrators fully accountable is crucial to maintaining public trust and ensuring these vital services are available for those who truly need them.
The scale of this fraud is staggering. Over $2 million stolen through bogus Medicaid claims is a major betrayal of public trust. This case highlights the importance of robust oversight and auditing to detect and prevent such egregious abuse of government programs.
Agreed. Hopefully this serves as a wake-up call to strengthen fraud detection and enforcement measures for Medicaid providers. Taxpayers deserve to have confidence that their hard-earned money is being used appropriately to support those in genuine need.
It’s disheartening to see a couple exploit a vital social safety net program for their own financial gain. Medicaid fraud erodes public confidence and diverts resources away from the intended beneficiaries. I hope the justice system sends a strong message that this type of criminal behavior will not be tolerated.
This case is a sobering reminder that even government-run programs like Medicaid are vulnerable to exploitation by unscrupulous individuals. While the details are concerning, I’m glad the authorities were able to uncover and put a stop to this fraudulent scheme. Hopefully, improved oversight can prevent similar abuses in the future.