Press Release  AG Campbell Announces Over $1 Million Settlement With Worcester County Transportation Provider For Defrauding MassHealth And Department Of Developmental Services

BOSTON — Attorney General Andrea Joy Campbell today announced that her office has reached a $1.045 million settlement with Traveler's Transit, Inc. (Traveler’s), a Millville-based non-emergency transportation provider, resolving allegations that the company submitted false claims to MassHealth and the Department of Developmental Services (DDS) for contracted routes not actually driven and failed to have required staff monitors onboard for certain routes.

As part of the settlement, Traveler’s will pay $1.045 million to the Commonwealth, including for restitution to MassHealth and DDS, and implement a three-year independent compliance monitoring program at its own expense. The compliance program will result in updated policies and procedures to ensure compliance with state and federal laws, trainings for staff on the updated policies and procedures, and periodic audits, amongst other requirements.

“When companies violate our laws and defraud crucial state programs, taxpayer-funded resources are wasted and the integrity of our public programs are put at risk,” said AG Campbell. “I am proud to announce this settlement, which will provide meaningful restitution to the Commonwealth and ensure compliance with laws that enable our state programs to serve the millions of residents who depend on them.”

As part of contracts with regional transit authorities in Worcester and Bristol counties, Traveler’s provides transportation services, including wheelchair and group transportation, to MassHealth members and DDS service recipients with disabilities, which are paid for by MassHealth and DDS.

The AGO alleges that in violation of its contracts, Traveler’s illegally combined or eliminated certain contracted routes to drive fewer routes and knowingly submitted false claims for payment to MassHealth and DDS as though it had driven the contracted routes.

Additionally, the AGO alleges that Traveler’s failed to provide onboard staff monitors to ensure passenger safety for certain routes as required by its contracts.

The AGO asserted that Traveler’s alleged conduct constituted violations of various state and federal laws, including the Massachusetts False Claims Act. These allegations were first uncovered through a whistleblower lawsuit filed in the District of Massachusetts.

This matter was handled by Assistant Attorney General Shannon Keating of the AGO’s False Claims Division, along with Senior Healthcare Fraud Investigators William Welsh and Vanessa Asiatidis, Investigator Julia Galvao, and Investigations Supervisor Dean Bates, all of the AGO’s Medicaid Fraud Division. The U.S. Attorney’s Office for the District of Massachusetts and the Executive Office of Health and Human Services provided substantial assistance during the investigation. 

This matter is representative of the AGO’s efforts to combat fraud, safeguard public funds, and hold accountable those who misuse roles of authority or public trust. Earlier this month, the AGO announced a $4.5 million global settlement to resolve allegations of construction fraud at Westfield-Barnes Regional Airport. The AGO has brought a number of actions involving non-emergency transportation companies. Earlier this year, the AGO obtained indictments of a Worcester-based transportation company and its owner for allegedly stealing more than $3 million from MassHealth and for allegedly engaging in patient abuse and money laundering. Similarly, in October 2024, the AGO reached a $380,000 settlement with a Swampscott-based medical transportation company for submitting false claims to MassHealth for services it never provided.

The AGO’s False Claims Division works to safeguard public funds and promote integrity and accountability in public contracting, including by holding to account individuals and companies that make false statements to obtain government contracts or funds and enforcing the Massachusetts False Claims Act. Individuals may report potential fraud and abuse relating to state or municipal contracts or funds by calling the AGO’s False Claims Tip Line at 617-963-2600.

The AGO’s Medicaid Fraud Division is a Medicaid Fraud Control Unit, annually certified by the U.S. Department of Health and Human Services to investigate and prosecute health care providers who defraud the state’s Medicaid program, MassHealth. The Medicaid Fraud Division also has jurisdiction to investigate and prosecute complaints of abuse, neglect and financial exploitation of residents in long-term care facilities and of Medicaid patients in any health care setting. Individuals may file a MassHealth fraud complaint or report cases of abuse or neglect of Medicaid patients or long-term care residents by visiting the AGO’s website.  

The Massachusetts Medicaid Fraud Division receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,922,320 for federal fiscal year 2025. The remaining 25 percent, totaling $1,974,102 for FY 2025, is funded by the Commonwealth of Massachusetts.

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