$1 Million Medicaid Con—FBI Takes ACTION

Medicaid website displayed on a smartphone screen

A Colorado woman allegedly defrauded taxpayers of over $1 million by billing Medicaid for phantom medical rides—including more than $400,000 for her own family members who never attended medical appointments—while using the stolen funds to bankroll luxury vacations and vehicles.

Story Snapshot

Ashley Marie Stevens faces 23 federal counts for allegedly billing Colorado Medicaid over $1 million through fake transportation claims from July 2022 to February 2023
More than $400,000 was fraudulently billed for rides for Stevens and her family members without corresponding medical appointments
Additional fraudulent charges included $150,000 for non-existent rides and over $450,000 for impossible 400+ mile daily trips rarely tied to actual medical services
The scheme diverted taxpayer dollars meant for vulnerable low-income patients who legitimately need transportation to medical care

Medicaid Transportation Fraud Exposed

Ashley Marie Stevens, 40, of Mesa County, Colorado, operated Armistead Twin Rides, LLC, and allegedly submitted over $1 million in fraudulent billings to Colorado’s Medicaid non-emergency medical transportation program between July 2022 and February 2023. Federal investigators from the FBI and U.S. Department of Health and Human Services Office of Inspector General uncovered systematic billing for services never rendered. Stevens now faces six counts of wire fraud, 11 counts of health care fraud, and six counts of money laundering. The indictment reveals she used stolen taxpayer funds to purchase luxury items including a high-end vehicle and expensive travel accommodations.

Family Members Billed as Phantom Patients

The most egregious aspect of Stevens’ alleged fraud involved billing more than $400,000 specifically for transportation rides for herself and her family members to medical appointments that never occurred. This represents a brazen exploitation of a program designed to help genuinely needy Medicaid beneficiaries access essential healthcare services. Unlike typical Medicaid fraud schemes involving deceased patients or home health services, Stevens allegedly created a systematic operation centered on billing phantom rides for her own relatives. The non-emergency medical transportation program exists to serve low-income individuals who lack reliable transportation to medical appointments, making this type of fraud particularly damaging to vulnerable populations who depend on these services.

Impossible Distances and Ghost Rides

Beyond the family billing scheme, investigators documented additional fraudulent patterns totaling approximately $600,000. Stevens allegedly billed Medicaid $150,000 for rides that either never happened or were unrelated to any medical appointments. Another $450,000 in charges involved implausibly long trips exceeding 400 miles per day per patient, with records showing these extensive journeys were rarely connected to actual medical services. These fabricated distance claims allowed Stevens to maximize reimbursement rates while providing little or no legitimate transportation. The scale of the impossible mileage claims should have triggered immediate red flags, highlighting significant oversight weaknesses in Colorado’s Medicaid verification systems that fraudsters continue to exploit.

Pattern of Colorado Medicaid Abuse

Stevens’ case is not isolated but part of a disturbing pattern of Medicaid fraud in Colorado that costs taxpayers millions annually. A parallel case involves Wesam Yassin, 42, of Douglas County, who allegedly defrauded the same transportation program of $3.3 million between March 2022 and October 2023, including $165,000 billed for rides after beneficiaries had died. In 2023, Colorado Attorney General Phil Weiser prosecuted three women who billed Medicaid $134,235 for home healthcare services allegedly provided by a woman imprisoned at La Vista Correctional Facility from August 2020 through June 2022. These cases demonstrate how inadequate verification processes create opportunities for determined fraudsters to steal from programs intended for society’s most vulnerable citizens.

Taxpayer Impact and System Vulnerabilities

The combined fraud from Stevens and Yassin alone represents approximately $4.4 million in stolen taxpayer funds—money that comes from both federal sources, which cover 75 percent of Colorado Medicaid costs, and state revenues covering the remaining 25 percent. Colorado Medicaid’s non-emergency medical transportation program receives over $5.3 million in federal HHS grants for fiscal year 2026, making fraud of this magnitude particularly damaging to program sustainability. When criminals divert resources meant for legitimate transportation needs, vulnerable Medicaid beneficiaries face reduced access to essential medical care. This erodes public trust in government healthcare programs and burdens honest citizens who fund these services through their tax dollars. AG Weiser previously stated such fraud threatens the trust necessary for healthcare providers and vital services to function effectively.

Federal Crackdown and Accountability

The February 2026 indictments signal renewed federal commitment to prosecuting Medicaid fraud following increased post-COVID scrutiny of program integrity. Special Assistant U.S. Attorney Rebecca Weber is leading the prosecution through Colorado Attorney General’s Medicaid Fraud, Abuse and Neglect Unit. Stevens is presumed innocent until proven guilty, and no trial dates have been set as investigations by the FBI and HHS Office of Inspector General continue. If convicted, Stevens faces significant prison time and asset forfeiture to recover stolen funds. The aggressive prosecution sends a clear message that exploiting taxpayer-funded healthcare programs for personal enrichment will result in serious consequences. Long-term implications may include mandatory GPS tracking for transportation providers and enhanced audit procedures to prevent future ghost ride schemes.