Colorado Medicaid officials detected $25 million in abnormal billing over just four months two years ago — a surge that prompted a new state law and the suspension of dozens of providers in what authorities now describe as an organized fraud ring.

State and federal prosecutors have since charged two transportation providers in separate indictments, alleging they defrauded Medicaid’s non-emergent medical transportation program out of millions of dollars. The cases were filed in the U.S. District Court for Colorado.

Ashley Marie Stevens, 40, of Mesa County, and Wesam Yassin, 42, of Douglas County, were each charged with six counts of wire fraud and 11 counts of health care fraud.

Stevens also faces six counts of money laundering; Yassin faces eight.

Stevens allegedly billed more than $1 million between July 2022 and February 2023 through her company, Armistead Twin Rides, LLC, according to the indictments. Prosecutors said more than $400,000 of that total was for rides for herself and family members, many without corresponding medical appointments.

Stevens also is accused of billing more than $150,000 for rides that did not occur or were unrelated to medical services. Authorities alleged she used the proceeds for personal expenses, including travel and a luxury vehicle. The indictment further alleged that some billed trips involved implausibly long distances that did not align with documented medical services.

Yassin allegedly billed roughly $3.3 million over 19 months through his company, Sama Limo. Prosecutors said that included about $283,000 for 64 rides for a Medicaid beneficiary — approximately $165,000 of which was billed after the recipient had died.

Other billed rides allegedly did not correspond to medical appointments or were reported by beneficiaries as never having occurred. Authorities alleged the proceeds were used for personal purchases, including a home, luxury vehicles, jewelry and cosmetic surgery. Federal authorities have not indicated whether additional charges are forthcoming.

Jointly funded by state and federal governments, Medicaid provides health coverage to low-income residents, including children, pregnant women, seniors and people with disabilities.

In Colorado, the program serves roughly 1.2 million people.

Its non-emergent medical transportation program covers rides for beneficiaries who lack other means of transportation to medically necessary, non-emergency services. Providers are typically reimbursed based on mileage and level of service, which can include ambulatory, wheelchair-accessible or stretcher transport.

A recent analysis by the Common Sense Institute estimated the Department of Health Care Policy and Financing spending reached $16 billion in 2025 — a 101% increase since 2015 — even as Medicaid enrollment returned to nearly its 2015 level.

The report attributed much of the growth to policy expansions, rather than enrollment or medical inflation alone. State officials have previously pointed to Colorado’s Medicaid Sustainability Framework, which argues program growth has outpaced revenue limits under the Taxpayer’s Bill of Rights, creating structural budget pressure.

Since Attorney General Phil Weiser took office, the state’s Medicaid Fraud, Abuse and Neglect Unit has recovered more than $50 million through court orders, convicted 62 defendants and settled more than 100 civil fraud cases, said Lawrence Pacheco, a spokesperson. The unit is funded jointly by state and federal dollars.

Pacheco declined to comment on the cases.

The unit has roughly six open investigations into suspected medical transportation fraud. Officials declined to comment on whether those investigations are related to the cases announced this month.

The surge in abnormal billing was detected in April two years ago, triggering an investigation that led lawmakers to pass a new law allowing the Department of Health Care Policy and Financing to suspend a provider’s Medicaid enrollment over alleged misconduct, Marc Williams, a spokesperson said. The legislation expanded the department’s administrative authority during active fraud investigations.

With the law’s passage, the department suspended 64 providers to investigate their billing practices, Williams said. It also implemented a provider enrollment moratorium preventing new entities from enrolling as Non-Emergent Medical Transportation (NEMT) providers. The suspensions allowed regulators to pause payments, while claims were reviewed.

The moratorium — which remains in effect until March 31 — has blocked more than 600 providers believed to be associated with the suspected organized fraud ring from joining the Medicaid network. Officials have not disclosed how many of those entities were previously enrolled in other states.

A prepayment claims review for certain providers has also prevented more than $24 million in inappropriate payments to date, Williams said. That review requires additional documentation before reimbursement is issued.

Gov. Jared Polis’ office credited the department for referring the cases to law enforcement.

“In Colorado, we are committed to rooting out any fraud and ensuring efficient and effective use of every taxpayer dollar,” Eric Maruyama, a Polis spokesperson, said in a statement. “The state used every tool available to hold bad actors accountable and prevent future misuse of funds.”