TLC Obtains Record Legal Settlement Against Base

$750,000 settlement with Agape Luxury Corp, which the state AG determined falsified Medicaid trips, is the largest in TLC history

New York, NY – The New York City Taxi & Limousine Commission announced a record-breaking legal settlement today against a transportation company that had been falsifying non-emergency medical trips to obtain Medicaid reimbursements.

The Bronx-based company, Agape Luxury Corp, has agreed to pay $750,000 for TLC rule violations committed between January 1, 2018, and December 31, 2022—the largest settlement in the 54-year history of the TLC. Specifically, Agape and its owner submitted claims for medical transportation services to the New York State Medicaid program that were not performed as described in the claims, which the TLC alleges constitutes a violation of 53 RCNY Section 59B-13(b) and 59B-13(d); and Agape failed to timely report trip data to the TLC which the TLC alleges constitutes a violation of 35 RCNY Section 59B-19(a)(3).

“Fraudulent Medicaid trips not only exploit the most vulnerable among us, but taxpayers and drivers also end up paying the price,” said Taxi & Limousine Commissioner and Chair David Do. “Our Prosecution team led by Associate Commissioner Mohammed Akinlolu and assisted by Managing Attorney Kathy Hafeez and Senior Supervising Attorney Jessica Tavares, did a commendable job holding Agape accountable, and this settlement sends a clear message to any base attempting to scam the government: If you don’t follow the rules and defraud or endanger New Yorkers, there will be consequences.”

The TLC settlement comes after New York State Attorney General Letitia James’s announcement in June that she had recovered more than $13 million in false Medicaid claims from 15 transportation companies across the state, including $2.45 million from Agape. Four other NYC-based companies were forced to reimburse the State, but Agape and one other company, American Base No 1, were the only companies still licensed by the TLC. American Base No 1 chose to surrender its license. The AG’s investigation into the companies was assisted by TLC trip data.

TLC’s settlement took into consideration that Agape is the state’s largest non-emergency medical trip (NEMT) provider, dispatching about 2,500 drivers in 2024 who log approximately a million trips a year, and having about 40 employees who pay taxes to the state and city. The Commission has no reason to believe that any of Agape’s drivers were complicit in the Medicaid-related violations and holds Agape and its owner, Mario Sena, solely responsible.

The settlement amount was based on several factors, including Agape’s incomplete or inadequate trip records. Outside of the period that the settlement covers, TLC has so far seen no further violations of its rules by Agape, but will continue to monitor Agape and other TLC licensed bases, including NEMT providers, to ensure compliance with TLC rules.

“Companies that try to profit by cheating our health care system are jeopardizing critical services that New Yorkers rely on for care,” said New York State Attorney General Letitia James. “My office conducted a massive statewide investigation to stop companies like Agape from committing fraud and undermining Medicaid. I applaud TLC for their work to pursue this case and hold Agape accountable.” 

“I commend Commissioner Do and his entire team at the TLC for working in conjunction with the NYS Attorney General’s office, to obtain this settlement,” said TLC Commissioner Thomas Sorrentino. “It’s so important that companies and individuals who commit fraud and misdeeds are held accountable for such actions. Hopefully, this settlement will serve as a cautionary reminder to anyone who is thinking of not following the rules. I also hope that the TLC will investigate and further pursue other companies who may have violated the law.”

About the NYC TLC

Created in 1971, NYC TLC is the agency responsible for licensing and regulating New York City's medallion (yellow) taxi cabs, for-hire vehicles (community-based liveries, black cars, and luxury limousines), commuter vans, and paratransit vehicles, along with the businesses that operate them. It is recognized as the largest and most active taxi and for-hire vehicle regulatory body in the United States.

Almost 180,000 TLC licensees complete approximately 1,000,000 trips each day. To operate for hire, drivers must first undergo a background check, have a safe driving record, and complete 24 hours of driver training. TLC-licensed vehicles are inspected for safety and emissions at TLC's Woodside Inspection Facility.

To find out more about the TLC, or to review its rules, regulations, and procedures, we encourage you to visit our official website at www.nyc.gov/taxi or contact 311/311 Online.

###