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A.G. Schneiderman Announces Arrest Of Binghamton Transport Owner Charged With Stealing Over $100k From Medicaid

Garabed Kachadourian allegedly operating a transportation company without Workers’ Compensation Insurance or a valid taxi business license, and falsely filing documents.

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New York, NY - March 30, 2018 - Attorney General Eric T. Schneiderman announced the arrest of Garabed Kachadourian of Broome County for allegedly stealing over $100,000 in Medicaid payments by knowingly operating a transportation company without Workers’ Compensation Insurance or a valid taxi business license, and falsely filing documents stating the company was in compliance. Kachadourian owned and operated BC Cab, Inc., a transportation company operating in Broome County, which received payments from the Medicaid program for transporting Medicaid beneficiaries to medical appointments.
“Business owners cannot shirk their obligations in order to line their pockets – but that’s exactly what this defendant did, shamelessly stealing government benefits from taxpayers while putting employees at risk,” said Attorney General Schneiderman. “My office will continue to enforce these vital laws to protect New York’s workers and taxpayers.”
“This business owner’s brazen scheme of subterfuge and fraudulent filings enabled him to pocket six-figures worth of illicitly obtained government benefits while shortchanging his own employees out of critical Workers’ Compensation coverage,” said Inspector General Leahy Scott. “I will continue dedicating the resources of my office to protect the benefits meant to assist honest, hard-working New Yorkers.”
During the period October 12, 2012, to May 2, 2014, the defendant is alleged to have knowingly operated BC Cab, Inc. without required Workers’ Compensation Insurance. Prosecutors allege that during this time when the company operated unlawfully, they obtained over $95,000 in Medicaid payments.
During the period May 13, 2015, to June 29, 2015, the defendant is alleged to have knowingly operated the company without possessing a valid Broome County taxi business license – a violation of Broome County transportation regulations. Prosecutors allege that during this time when the company was operating unlawfully, they obtained over $7,000 in Medicaid payments. Prosecutors also allege that during the period Mar 2, 2014, to May 13, 2014, the defendant knowingly operated the company without a valid Broome County taxi business license and obtained $2,500 in Medicaid payments.
The defendant was arraigned by Hon. Carol A. Cocchiola, Presiding Binghamton City Court Judge.
By knowingly operating a business with more than five employees without Workers’ Compensation insurance, today’s felony complaint alleges that the defendant violated New York Workers’ Compensation law. The State requires companies to have Workers’ Compensation insurance so that insurance coverage will compensate employees who are injured on the job, suffer lost wages, and need medical care. Prior to the implementation of Workers’ Compensation laws, many injured employees had to hire an attorney and sue to prove that an employer caused their accident and injury, in order to obtain any compensation for a workplace injury.
The felony complaint also alleges that, in addition to not having the required Workers’ Compensation insurance, the defendant submitted documents to eMedNY/ Medicaid Management Information System, the New York State Workers’ Compensation Board, and the Broome County Government Security Division – falsely claiming BC Cab Inc. was in compliance with all federal and state laws and regulations.
Defendant Garabed Kachadorian is charged with Grand Larceny in the Second Degree, in violation of Penal Law § 155.40 (1), a Class C Felony (1 count); Grand Larceny in the Third Degree, in violation of Penal Law § 155.35 (1), a Class D Felony (1 count); Grand Larceny in the Fourth Degree, in violation of Penal Law § 155.30 (1), a Class E Felony (1 count); Offering a False Instrument for Filing in the First Degree, in violation of Penal Law § 175.35(1), a Class E Felony (6 counts); and Effect of Failure to Secure Compensation, in violation of Workers’ Compensation Law § 52(1)(a), a Class E Felony (1 count).
The Attorney General thanked the New York State Office of the Inspector General and the Broome County Government Security Division for their assistance in this investigation.
The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.
The investigation by the New York State Attorney General’s Medicaid Fraud Control Unit was conducted by Investigator John Collins, under the supervision of Regional Chief Investigator William Falk, and Regional Chief Auditor Dejan Budimir.
The matter is being presented in court by Special Assistant Attorney General Irene Bardot, under the supervision of Ralph D. Tortora, III, Syracuse Regional Director. Catherine Wagner is Chief of Criminal Investigations-Upstate. The Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division of Criminal Justice is led by Executive Deputy Attorney General Margaret Garnett.