Summary

Fraud Controls in the Paratransit Taxi Reimbursement Program

MTA/OIG #2014-22


The Office of the MTA Inspector General conducted a review of the Taxi Reimbursement Program as part of our continuing efforts to help ensure effective and efficient Paratransit services. Customers pay the driver for each trip and then request reimbursement from Paratransit’s Taxi Reimbursement department. During 2013, Paratransit reimbursed customers just over $4 million for nearly 190,000 taxi trips.

Our objective was to determine whether proper controls are in place to adequately deter and expeditiously detect fraudulent use of this program. As our report explains, we found that Paratransit did not have sufficient controls to adequately prevent and uncover fraud and other misuse of the program. We recommend that at a minimum, Paratransit should require more detailed information on taxi receipts and reimbursement requests. It should also generate additional lists of frequent taxi users to help focus reviews for potential abuse, and conduct greater fraud awareness training for TR staff.

Press

NY Post 04/08/15 – MTA cracking down on funding bogus cab trips

NY Daily News 04/09/15 – Crooks swindle MTA by using Paratransit program intended for disabled riders

The Brooklyn DA's Office Release 04/15/15 – Former Manager of New York Knights Goal Ball Team and
Two Others Charged With Stealing $65,000 From Paratransit Access-A-Ride Program

NY Post 04/16/15 – Three charged in MTA cab-reimbursement scheme

 

 

Report
Fraud