BOSTON, MA — Massachusetts Attorney General Andrea Joy Campbell has revealed a settlement of $1.045 million with Traveler’s Transit, Inc., a non-emergency transportation provider based in Millville. This settlement comes after allegations that the company defrauded MassHealth and the Department of Developmental Services (DDS) by billing for services that were never provided and neglecting to supply necessary safety staff.
The Attorney General’s Office (AGO) reported that Traveler’s Transit filed false claims for transportation routes that were never completed and did not have onboard monitors for certain routes that transported individuals with disabilities, which breaches state contracts and safety regulations. This alleged wrongdoing was brought to light through a whistleblower lawsuit filed in federal court in Massachusetts.
Under the terms of the settlement, Traveler’s Transit will:
- Pay $1.045 million to the Commonwealth for restitution to MassHealth and DDS.
- Implement a three-year independent compliance monitoring program at its own expense.
- Update internal policies and procedures to meet federal and state compliance standards.
- Conduct staff training and regular audits to ensure future compliance.
“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,” AG Campbell said in a statement. “This settlement brings accountability and ensures restitution to the Commonwealth.”
Traveler’s Transit has agreements with regional transit authorities in Worcester and Bristol counties to offer transportation services—including options for wheelchair accessibility and group travel—to MassHealth recipients and individuals with disabilities.
The AGO’s investigation revealed that the company either combined or eliminated scheduled routes while still billing the state as if those services were rendered. Furthermore, the company did not provide the necessary onboard monitors tasked with ensuring passenger safety on certain routes.
The AGO claims that these actions breached the Massachusetts False Claims Act along with other state and federal regulations. This case was managed by Assistant Attorney General Shannon Keating from the AGO’s False Claims Division, with assistance from the Medicaid Fraud Division and the U.S. Attorney’s Office for the District of Massachusetts.
This settlement is part of a larger initiative by the Attorney General’s Office to combat fraud related to state contracts and public health programs. Just this month, the AGO announced a $4.5 million settlement concerning construction fraud linked to Westfield-Barnes Regional Airport, and earlier this year, secured indictments against a transportation company based in Worcester accused of misappropriating over $3 million from MassHealth.
